Do you want to save for retirement on a tax-advantaged basis? It’s not too late to make 2019 IRA contributions (if you’re eligible) just because it’s 2020. And this year, the IRS extended the deadline three months due to COVID-19. Here are the rules and who can make contributions.
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Donating your stimulus check: How to make a tax-deductible donation
Stimulus checks are already arriving in mailboxes and bank accounts, but not everyone who receives a stimulus check needs the money. Part of the recent CARES Act, these stimulus checks include $1,200 for single filers or $2,400 for joint filers, plus $500 for each dependent child under age 17. The amount of the payment is[ … ]
Hiring independent contractors? Make sure they’re properly classified
As a result of the coronavirus (COVID-19) crisis, your business may be using independent contractors to keep costs low. But you should be careful that these workers are properly classified for federal tax purposes. If the IRS reclassifies them as employees, it can be an expensive mistake. The question of whether a worker is an[ … ]
Paycheck Protection Program – Loan Forgiveness
Updated Information – 5/13/2020 SBA issues new guidance on PPP loan necessity certification The CARES Act includes loan forgiveness provisions for loans received under the Paycheck Protection Program (PPP). The exact details are not yet clear. However, the Small Business Administration (SBA) has promised clarification of the forgiveness provisions at a future date. This Q&A[ … ]
Deferral of 6.2% Employer’s Share of FICA
The IRS recently published FAQs that clarify payment of the employer’s share of FICA from March 27, 2020 through December 31, 2020. In the IRS FAQs (linked below), the IRS has clarified that all employers may defer payment of the Employer’s share of FICA (i.e. the 6.2%) for deposits and payments otherwise due beginning March[ … ]
Paycheck Protection Program – A Primer on Payroll
What are gross wages and why don’t they match the tax forms? The Paycheck Protection Program (PPP) requires applicants and lenders to use gross wages in calculating the loan amount. Gross wages is defined as the total amount paid by an employer to an employee. Gross wages is the amount before any deductions and is[ … ]
Employee Retention Credit
NOTE: Credit not available to small businesses that receive a Paycheck Protection Program Loan. In addition, wages claimed for employees under the Work Opportunity Credit are exempt. The Employee Retention Credit is a refundable tax credit against certain payroll taxes equal to 50% of qualified wages a qualifying employer pays to employees after March 12,[ … ]
Paycheck Protection Program
The Coronavirus Aid, Relief and Economic Security Act (CARES Act) provides for the Paycheck Protection Program (PPP). Funding for this program is limited and businesses apply for loans through their business lender. Applications will be processed on a first-come, first-served basis. The following will help you determine the information to gather for the computation of[ … ]
Economic Injury Disaster Loans
In response to the Coronavirus pandemic, the President signed H.R. 748, known as the Coronavirus Aid, Relief and Economic Security Act (CARES) on March 27, 2020. The Act includes a new Paycheck Protection Program (PPP) that seeks to provide short-term cash flow through federally guaranteed loans for small businesses impacted by COVID-19. These loans will[ … ]
