The American Rescue Plan Act of 2021 (ARPA) included a provision for a federally-financed Consolidated Omnibus Budget Reconciliation Act (COBRA) subsidy from April 1, 2021 through September 30, 2021. The subsidy is available to qualifying employees who involuntarily lost their jobs or had significantly reduced hours. This applies to: Individuals who were previously eligible for […]
The Internal Revenue Service is reminding taxpayers about the rules for required minimum distributions (RMDs) from retirement accounts. Previous rules stated that a retirement plan account owner must begin taking an RMD annually starting the year he or she reaches 70 ½ or 72, depending on the birthdate and retirement year of the plan owner. Retirement […]
The filing date for the federal income tax has been postponed until May 17. The IRS has announced that individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed. This postponement applies to […]
An ESOP is an employee benefit plan that’s similar to profit sharing. In an ESOP, a company sets up a trust fund, contributing new shares of its own stock or cash to buy existing shares. Companies use ESOPs for many purposes: To provide a market for departing owners of closely held companies. To motivate and […]
IRS Notice 2020-65 allowed employers to defer withholding and payment of the employee’s Social Security taxes. This deferral applied to those with less than $4,000 in wages every two weeks, or an equivalent amount for other pay periods. It was optional for most employers, although mandatory for federal employees and military service members. It’s time […]
Form 990, Return of Organization Exempt From Income Tax, is the IRS’ method of evaluation to make sure your nonprofit is financially honest and legitimate. The form is required for tax-exempt organizations to file each year to remain compliant with the regulations and requirements set by the IRS. Form 990 requires expenses to be separated […]