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updates

Employer Tax Credits

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…

Get My Payment Tool

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…

Charitable Donation Tax Breaks

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…

Standard Mileage Rates

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…

Employee vs Independent Contractor

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…

The Balanced Scorecard approach to strategic planning

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….

We can explain the tax implications of COVID-19 relief laws

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…

Tax Errors Can Be Costly

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…

COVID-19 Assistance Package

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…

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