Do You Need an Economic Injury Disaster Loan?

Even before the pandemic, the Small Business Administration offered Economic Injury Disaster Loans for “losses not covered by insurance or funding from the Federal Emergency Management Agency (FEMA) for both personal and business” expenses and for “business operating expenses that could have been met had the disaster not occurred.” The SBA has also been offering […]

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IRS to Recalculate Taxes for Unemployment Break

Legislation signed in March allows taxpayers who earned less than $150,000 in modified adjusted gross income to exclude unemployment compensation up to $20,400 if married filing jointly and $10,200 for all other eligible taxpayers. The legislation excludes only 2020 unemployment benefits from taxes. Because the change occurred after some people filed their taxes, the IRS […]

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American Rescue Plan Act – COBRA Subsidy

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 […]

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New Laws Affect Retirement Plans

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 […]

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Federal Tax Date Postponed to May 17

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 […]

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Can an ESOP Work for You?

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 […]

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Repaying Deferred Payroll Taxes

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 […]

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How Nonprofits Should Handle Tax Form 990

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 […]

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Special PPP Loan Provisions for Small Businesses

Starting on Feb. 24, 2021, the SBA is establishing 14-day, exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employees. This is according to guidance on the SBA and White House sites. According to the statement, this will give lenders and community partners more time to work with the smallest businesses to submit […]

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