We are available to answer any questions you may have on your accounting, tax or audit matters. Do not hesitate to contact us via phone, video or email, if you need assistance navigating through the recent legislation, with your loan application or financial and budget process during these times.
Government Resources
News Items
Employee Retention Credit Offers a Payroll Tax-Savings Opportunity for Construction & Real Estate Companies
Construction and Real Estate businesses have a lot to consider as they prepare to file their 2021 taxes. One of which is the Employee Retention Tax Credit (ERC), a payroll…
Read MoreThe Advance Child Tax Credit Explained
On July 15th, 2021, eligible parents automatically began receiving advance Child Tax Credit payments from the federal government. It is important taxpayers know the implications of this credit. The Advance…
Read MoreState and Local Tax Considerations for Remote Employees
When the Covid-19 pandemic started, most businesses went virtual. One of the unintended consequences of this shift is the effect it had—and continues to have–on how and where remote employees…
Read MoreThere’s Currently a “Stepped-Up Basis” If You Inherit Property — But Will It Last?
If you’re planning your estate, or you’ve recently inherited assets, you may be unsure of the “cost” (or “basis”) for tax purposes. The current rules Under the current fair market…
Read MoreFederal Tax News
1. The Per Diem Rates for 2021-2022 Are Announced The IRS has announced the special per diem rates, which are effective Oct. 1, 2021. Taxpayers may use these per diem…
Read MoreResources for Small Businesses and Not-for-Profits.
Also refer to Navigating Your Business Through Coronavirus (COVID-19) above for additional information.
Resources for Small Businesses and Not-for-Profits.
The SBA’s Economic Injury Disaster Loan program provides small businesses with low interest loans of up to $2 million to help overcome the temporary loss of revenue they are experiencing due to the Coronavirus (COVID-19) pandemic. Refer to the links below for program information.
Resources for Small Businesses and Not-for-Profits.
The Families First Coronavirus Response Act expands the Family Medical and Leave Act (FMLA) and Paid Sick Leave requirements for most organizations under 500 employees.
Employers must provide eligible employees with up to 12 weeks of job-protected leave to care for their children.
- Employees that have been on the payroll for at least 30 calendar days.
- Employees that are unable to work, onsite or remote, because their child’s school or child care services is closed due to the public health emergency.
- First 10 days of leave can be unpaid. Employees can use accrued time
- For the other 10 weeks, employees must receive two-thirds of their regular rate of pay. This is capped at $200 a day.
Employers will have to provide up to 80 hours of paid-sick-leave to employees, regardless of the length of time that they have been employed. Paid sick-leave benefits will be available immediately.
Paid sick leave must be paid at the employee’s regular rate of pay, or minimum way, whichever is greater for any employee that:
- Has been ordered to a federal, state, or local quarantine or isolation related to COVID-19
- Has been advised by a health care provider to self-quarantine because of COVID-19
- Has symptoms of COVID-19 and is seeking a medical diagnosis
Paid sick leave must be paid at two-thirds of the employee’s regular rate of pay, or minimum wage, whichever is greater for any employee that:
- Is caring for someone who is subject to a government quarantine or isolation order or has been advised by a health care provider to quarantine or self-isolate.
- Needs to care for their child whose school or child care services is closed due to COVID-19.
- Is experiencing similar conditions as specified by the Secretary of Health and Human Services in consultation with the Secretary of the Treasury and the Secretary of Labor.
Paid sick leave is capped at $511 a day for an employee’s own care and $200 a day for employees caring for someone.
- Organizations with less than 50 employees if providing paid family and medical leave and paid sick leave would “jeopardize the viability of the business”
- Excludes health care providers and emergency responders. This is subject to change as smaller healthcare offices may qualify.
- Organizations with less than 25 employees do not have to reinstate employees in the same or equivalent position if the position no longer exists.
Also under the Families First Coronavirus Response Act, employers who pay sick or family leave under the act, can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus (COVID-19) related leave to their employees.
Examples
If an eligible employer paid $5,000 in sick leave and is otherwise required to deposit $8,000 in payroll taxes, including taxes withheld from all its employees, the employer could use up to $5,000 of the $8,000 of taxes it was going to deposit for making qualified leave payments. The employer would only be required under the law to deposit the remaining $3,000 on its next regular deposit date.
If an eligible employer paid $10,000 in sick leave and was required to deposit $8,000 in taxes, the employer could use the entire $8,000 of taxes in order to make qualified leave payments and file a request for an accelerated credit for the remaining $2,000.
Equivalent child care leave and sick leave credit amounts are available to self-employed individuals under similar circumstances. These credits will be claimed on their income tax return and will reduce estimated tax payments.