Happy New Year! While no one seems too sad to see the back of 2020, there is much to tackle as we head into 2021. Though more COVID-19 federal economic relief is still expected, measures passed at the end of 2020 and subsequent guidance have provided individuals and businesses with some assistance. Meanwhile, we are entering tax…
Need another PPP loan for your small bus...
Need another PPP loan for your small business? Here are the new rules Congress recently passed 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…
New law doubles business meal deductions...
New law doubles business meal deductions and makes favorable PPP loan changes 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…
The 2021 “Social Security wage base” is
If your small business is planning for payroll next year, be aware that the “Social Security wage base” is increasing. The Social Security Administration recently announced that the maximum earnings subject to Social Security tax will increase from $137,700 in 2020 to $142,800 in 2021. For 2021, the FICA tax rate for both employers and…
Employers have questions and concerns ab...
The IRS has provided guidance to employers regarding the recent presidential action to allow employers to defer the withholding, deposit and payment of certain payroll tax obligations. The three-page guidance in Notice 2020-65 was issued to implement President Trump’s executive memorandum signed on August 8. Private employers still have questions and concerns about whether, and how,…
The possible tax consequences of PPP loa...
If your business was fortunate enough to get a Paycheck Protection Program (PPP) loan taken out in connection with the COVID-19 crisis, you should be aware of the potential tax implications. PPP basics The Coronavirus Aid, Relief and Economic Security (CARES) Act, which was enacted on March 27, 2020, is designed to provide financial assistance…
Paycheck Protection Flexibility Act
In some welcome news, the Senate passed the House Bill to provide enhanced and, in many cases, more lenient guidelines for PPP loan forgiveness. As soon as the President signs The Paycheck Protection Flexibility Act, borrowers will be able to adjust their plans and budgets for the use of their PPP funds according to the…
PPP Loan Forgiveness Application: Guidan...
With the release of the PPP Loan Forgiveness Application and related guidance, we now have some needed clarification – and yet are left with many unanswered questions. The rules continue to evolve as the 8-week coverage period approaches the finish line for some who qualified for the loans. While there are talks of expanding the 8-week…
Payroll Protection Program (PPP) Loan Up...
Because the regulatory requirements surrounding the Payroll Protection Program (PPP) Loans are continuing to change, we feel it is crucial to update you on some recent developments: Employers looking to rehire employees that have been receiving unemployment must make a good faith, written offer to rehire them. An employee who rejects that offer must…
Relief from not making employment tax de...
The IRS has issued guidance providing relief from failure to make employment tax deposits for employers that are entitled to the refundable tax credits provided under two laws passed in response to the coronavirus (COVID-19) pandemic. The two laws are the Families First Coronavirus Response Act, which was signed on March 18, 2020, and the…