2021 – 01/12 COVID-19 has shut down many businesses, causing widespread furloughs and layoffs. Fortunately, employers that keep workers on their payrolls are eligible for a refundable Employee Retention Tax Credit (ERTC), which was extended and enhanced in the latest law. Background on the credit The CARES Act, enacted in March of 2020, created the…
2021 – 01/06 A valuable employer tax credit is extended, but modified, for 2021. Under the Families First Act, certain employers were obligated to provide paid sick and family leave to employees affected by COVID-19 from April through December 2020. Employers who provided such leave then qualified for refundable employment tax credits to help mitigate…
2021 – 01/06 As the second round of economic impact payments (EIPs) rolls out, eligible taxpayers may be able to help speed up the process. The IRS has updated its “Get My Payment” tool, which answers questions about eligibility and allows you to provide the IRS with information it needs to issue an EIP. Payments…
2020 – 01/06 Congress recently passed, and President Trump signed, a new law providing additional relief for businesses and individuals during the COVID-19 pandemic. One item of interest for small business owners in the Consolidated Appropriations Act (CAA) is the opportunity to take out a second loan under the Paycheck Protection Program (PPP). The basics…
2021 – 01/05 The new law extends and improves charitable donation tax breaks. For 2020, individuals who don’t itemize deductions could take up to a $300 above-the-line deduction for cash contributions to qualified charitable organizations. The Consolidated Appropriations Act (CAA), which was signed on Dec. 27, 2020, extends this deduction through 2021. The law increases…
2021 – 01/04 The IRS has issued the 2021 standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. As of Jan. 1, 2021, the standard mileage rates for the use of a vehicle are: 56 cents per mile for business use; 16 cents per…
2021 – 01/04 The COVID-19 relief bill, signed into law on December 27, 2020, provides a further response from the federal government to the pandemic. It also contains numerous tax breaks for businesses. Here are some highlights of the Consolidated Appropriations Act of 2021 (CAA), which also includes other laws within it. Business meal deduction…
2020 – 12/30 When determining whether to classify a worker as an employee or an independent contractor, the IRS and the courts look at several factors. They include: 1) the degree of control exercised by the business over the work details; 2) which party invests in the facilities used in the work; 3) whether the…
2020 – 12/30 Some might say the end of one calendar year and the beginning of another is a formality. The linear nature of time doesn’t change, merely the numbers we use to mark it. Others, however, would say that a fresh 12 months — particularly after the arduous, anxiety-inducing nature of 2020 — creates…
2020 – 12/28 The best choice of entity can affect your business in several ways, including the amount of your tax bill. In some cases, businesses decide to switch from one entity type to another. Although S corporations can provide substantial tax benefits over C corporations in some circumstances, there are potentially costly tax issues…
2020 – 12/23 In the early 1990s, the Balanced Scorecard approach to strategic planning was developed to enable business owners to better organize and visualize their objectives. With 2021 shaping up to be a year of both daunting challenges and potentially remarkable recovery, your company should have a strategic plan that’s both comprehensive and flexible….
On December 21, 2020 the U.S. Senate and House of Representatives passed a $900 billion COVID Relief Bill (the Consolidated Appropriations Act, 2021). The measure now goes to President Trump, who is expected to sign it into law. The bill includes stimulus checks for individuals, unemployment benefits, and additional aid for small businesses. Below are…
2020 – 12/22 Tax errors can be costly for small businesses. Accidentally failing to comply with tax laws, violating tax codes, or filling out forms incorrectly can leave taxpayers and their businesses open to possible penalties. The IRS has stated that the most common errors by small businesses include underpaying estimated taxes and depositing employment…
2020 – 12/21 Congressional negotiators have reached an agreement on a COVID-19 assistance package. The $900 billion deal will provide a second round of direct payments and boost unemployment benefits. The direct payments will be up to $600 to individuals under a certain income threshold, and an additional $600 per child. Tax “extenders” are also…
2020 – 12/21 Here are some of the key tax-related deadlines affecting businesses and other employers during the first quarter of 2021. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the…
