Changes have been made to the employee retention credit due to the Taxpayer Certainty and Disaster Tax Relief Act of 2020. Find out if you can take advantage of these changes.
President Donald Trump’s payroll tax deferral took effect on September 1. The deferral allows employees to delay until Dec. 31 paying the 6.2% tax that comes out of paychecks for Social Security.
We are advising employers against implementing it because the burden is on the employer to collect and remit the extra taxes in January – April 2021. Here’s a brief presentation on how it works for employees, and what employers might be considering. Please contact us with any questions regarding the program.
In a move designed to keep small businesses afloat, the CARES Act provides that businesses with fewer than 500 employees — including sole proprietors and nonprofits— will have access to nearly $350 billion in loans. A separate section of the CARES Act calls for a portion of the paycheck protection loans to be forgiven on a tax-free basis. Please give us a call if you have any questions 734-464-3660.
The new stimulus package boosts unemployment insurance. This boost will allow people to receive an extra $600 a week in unemployment benefits for up to 4 months – on top of the amount they get from the State. The relief package would also provide unemployment benefits to self-employed and contract workers, who typically aren’t eligible, for up to 39 weeks.
Bank of America is offering loan deferment for home owners with mortgages through them. You have to call your local bank and they will set up a phone conference to see if you qualify. The deferred payments will be added onto the end of their mortgage payments. Currently it is unknown how many payments will be deferred. Contact your local Bank of America today!
Many small businesses need help with the recent order to “Stay Home Stay Safe” that was passed on 3/21/20 to stop the spread of COVID-19. Here is a guide to help you through these tough times. Please call our office if you have any questions or need assistance 734-464-3660. Keep watching our blog and Facebook page as we will keep you updated with new information as it is released.
Click here for Resource Guide for Small Businesses (Updated 8/30)
New overtime option? Under a new bill proposed in the House, employers can offer to reward employees with extra time off in lieu of receiving pay at the usual time-and-a-half overtime rate. The choice would be voluntary. Any unused compensatory time at the end of a year would be converted to overtime pay.
Small Business Tax Strategies Vol. 12 No. 7 July 2017
S corporation owners can only deduct losses up to the amount of their basis in the shares. But some business owners ignore this limit, much to the chagrin of the IRS. Now the tax collection agency’s Large Business and International Division is ramping up audits in this area. Its agents will contact shareholders to ensure they are properly limiting their losses to their stock basis.
Small Business Tax Strategies Vol 12. No. 7 July 2017