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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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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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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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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IRS Issues Warning on Fraudulent Unemployment Forms

The latest financial scam involves fraudulent Form 1099-G, which government agencies use to report unemployment compensation. The IRS issued the following notice: The IRS is urging taxpayers who receive Forms 1099-G for unemployment benefits they did not actually get because of identity theft to contact their appropriate state agency for a corrected form. States issue Forms […]

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Employee Retention Credit (ERC) and Paycheck Protection Program (PPP) loans

With the new legislation from the Consolidated Appropriations Act, there could be an opportunity from some business to to receive additional relief through the Employee Retention Credit. Notable changes specific to the Employee Retention Credit include: Extension of the Employee Retention Credit through June 30,2021 Increased credit rate from 50% to 70% of qualified wages […]

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Consolidated Appropriations Act, 2021 (COVID-19 Relief Bill)

The U.S. Senate and House of Representatives passed a $900 billion COVID-19 relief bill last night that includes some major tax provisions, including pandemic-related relief, extensions of expired provisions, and a large number of miscellaneous items. Key provisions in the bill include: $325 billion in aid for small businesses struggling after nine months of pandemic-induced […]

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Can the COVID-19 Vaccine Be Mandatory

As COVID-19 vaccines become available, employers may require vaccines before employees return to the worksite if the employer believes that failure to be vaccinated constitutes a direct threat to other employees. Employees wonder whether they’ll be required to get a COVID-19 vaccination if they want to keep their jobs. Basically, employers can set working conditions, […]

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Restructuring Debt as a Business Strategy

Many businesses are facing the financial effects of the Covid-19 pandemic. The loss of clients and decreased cash flow have forced businesses to make some hard choices that involve restructuring debt either in- or outside of bankruptcy or simply closing the doors. Key Considerations The first task for company leaders is leaving their emotions aside […]

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