Qualifications for 8(a) Firm Status

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Through the 8(a) Business Development Program, owners can compete for special contracts, such as sole-source government contracts for which there are no competitive bids, that help level the playing field for their small businesses. These small businesses can use the program to form joint ventures with already-established businesses to form mentor-protégé relationships, as well as for management and technical assistance. Businesses must meet certain requirements to be eligible to be a protégé. In order to qualify to become an 8(a) firm under SBA guidelines, a business must meet the following criteria (effective July 15, 2020):1 It must be a small business.It must not have participated in the program before.At least 51% of the business must be owned and operated by U.S. citizens who are considered economically and socially disadvantaged.The owner's…
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What Is the Employer Payroll Tax Deferral Provision?

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On March 11, 2021, President Joe Biden signed into law the American Rescue Plan Act, a $1.9 trillion bill that extends many forms of federal assistance for small businesses impacted by the coronavirus pandemic that were first introduced by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Two of these provisions are the employee retention credit and the employer payroll tax deferral. These are related but function differently. The employee retention credit provides businesses with a payroll tax credit of up to $10,000 per full-time employee per quarter through Jan. 1, 2022, while the employer payroll tax deferral allows your business to postpone paying some payroll taxes due in 2020 by paying half of those taxes at the end of 2021 and the other half at the end of…
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