Flex Tax & Consulting Group (Flex Tax), a San Francisco, Houston, and New York-based accounting, tax, and business consulting firm, is helping small businesses understand the Employee Retention Tax Credit (ERTC) and navigate the application and filing processes.
The ERTC is a refundable credit that businesses can claim on qualified wages paid to employees, which includes health insurance costs. Qualifying for the ERTC is determined by one of two factors for eligible employers:
- Factor 1: A trade or business that was fully or partially suspended, or reduced hours due to government order.
- Factor 2: An employer with a significant decline in gross receipts.
The Internal Revenue Service and Department of Treasury have updated the ERTC based on Notice 2021-23. The ERTC is designed to assist small businesses in paying their employees, keeping their doors open, and covering wages paid after June 30, 2021 and before January 1, 2022, which can be claimed through December 31, 2021.
For small business owners unsure about eligibility and the application method, or possess any questions regarding the tax credit, Flex Tax can help these owners apply for the ERTC and help them learn what they can do to apply for the tax credit.
The bottom line is that small companies are eligible for ERTC as long as they have full-time employees.
“Small businesses are the backbone of this nation. Many Fortune 500 businesses started as a small company, perhaps in a garage or dining room,” said Senior Tax Associate of Flex Tax, Jianchao Rao. “The pandemic hit industries hard, many small businesses had to shut their doors for good due to COVID, and we know that there are still others struggling to see tomorrow.”
Small businesses that need assistance with preparing their tax return to claim the ERTC can turn to Flex Tax. The firm can help file tax returns for businesses with an unwavering commitment to providing cost-effective, high-caliber solutions to today’s complex business challenges.
“Our team is dedicated to helping small companies, agencies, firms, stores, etc., navigate the financial world and keep their doors open,” continued Rao. “We are proud to assist these businesses by calculating tax credits, submitting or amending payroll tax returns.”
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