6 key IT questions to ask in the new normal
The sudden shutdown of the economy in March because of COVID-19 forced many businesses to rely more heavily on technology. To keep your IT strategy relevant in the new normal, you’ve got to reassess processes and assets by asking the right questions. What are your users saying about your company’s technology? Do you have “information silos” inhibiting collaboration between people or teams? Do you have a sound digital file-sharing policy? Has your technology become outdated by the rapid, crisis-driven changes? Is more training needed? Are your security protocols being followed? Our firm can help you assess your IT strategy and identify cost-effective process changes and asset upgrades.
After you file your tax return: 3 issues to consider
After filing a 2019 tax return, there may still be three issues to bear in mind. 1) You can check up on your refund. Go to irs.gov and click on “Get Your Refund Status” to find out. 2) Some tax records can now be thrown out. You should generally save statements, receipts, etc. for three years after filing (although keep the actual returns indefinitely). But there are exceptions to this general rule. 3) If you forgot something, you can generally file an amended tax return. File Form 1040X to claim a refund within three years after the date you filed the original return or two years of the date you paid the tax, whichever is later. Contact us for more information.
Assessing productivity as you cope with the pandemic
The COVID-19 crisis is affecting not only the way many businesses operate, but also how they assess productivity. With many employees working remotely, some company leaders initially worried about productivity. But a poll conducted in part by USA Today in April found 54% of respondents said that working remotely has positively affected their productivity. You should be able to count on remote workers to fulfill their job duties. However, business owners also must recognize the work-life balance and mental health challenges of working during a pandemic. You can also use metrics such as revenue per employee to measure the financial impact of productivity. Contact us for more info.
Some people are required to return Economic Impact Payments that were sent erroneously
Economic Impact Payments (EIPs) are being sent to eligible individuals in response to the financial impact caused by COVID-19. However, the IRS says some payments were sent erroneously and should be returned. For example, an EIP made to someone who died before receipt of the payment should be returned. The entire EIP should be returned unless it was made to joint filers and one spouse hadn’t died before receipt. In that case, you only need to return the EIP portion made to the decedent. This amount is $1,200 unless your adjusted gross income exceeded $150,000. Instructions for returning the payment can be found here: https://bit.ly/31ioZ8W.
SBA reopens EIDL program to small businesses and nonprofits
The EIDL program may not have received as much attention as the PPP, but it’s equally valuable to small businesses and nonprofits striving to remain operational during the ongoing public health and economic crisis. We can help you determine whether you’re eligible and, if so, complete the application process.
What qualifies as a “coronavirus-related distribution” from a retirement plan?
The CARES Act allows qualified people to take “coronavirus-related distributions” from retirement plans without paying tax. So how do you qualify? You can take up to $100,000 in coronavirus-related distributions made from an eligible retirement plan between Jan. 1 and Dec. 30, 2020. If you repay the distribution to your IRA or plan within 3 years, you can treat it and the later recontribution as a tax-free rollover. In Notice 2020-50, the IRS explains that a qualified person is one who is diagnosed (or whose spouse/dependent is diagnosed) with COVID-19. Alternatively, it is someone who experiences adverse financial consequences due to COVID-19. For more details: https://bit.ly/37STcwK
Paycheck Protection Program (PPP) Update
Paycheck Protection Program Flexibility Act Signed Into Law President Trump signed into law the Paycheck Protection Act on Friday, June 5th addressing some concerns of the Paycheck Protection Program and its procedures. Here are the meaningful adjustments that have now been made to the program: Extension of time to use funds from 8 to 24 […]
Attuning your social media strategy to the pandemic
Social media was important for businesses before the novel coronavirus (COVID-19) pandemic. It’s now become essential to maintaining visibility, building goodwill and perhaps even generating a bit of revenue. But the social media strategy you deployed before the crisis may no longer be effective or appropriate. Start by reviewing your approach to social media so you can identify what adjustments may be necessary. Avoid hard-sell tactics; focus on being helpful and supportive. Customers value brand consistency, so you probably shouldn’t change the look and style of your posts. Seek out opportunities to positively engage with those who follow your accounts. Contact us for more info.
Fortunate enough to get a PPP loan? Forgiven expenses aren’t deductible
The IRS has issued guidance clarifying that certain deductions aren’t allowed if a business has received a Paycheck Protection Program (PPP) loan. Specifically, an expense isn’t deductible if both: 1) the payment of the expense results in forgiveness of a loan made under the PPP, and 2) the income associated with the forgiveness is excluded from gross income under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. IRS Notice 2020-32 states that “this treatment prevents a double tax benefit.” However, two members of Congress say they’re opposed to the IRS stand on this issue. They say they’ll seek legislation to make certain expenses deductible. Stay tuned.
Did you get an Economic Impact Payment that was less than you expected?
Did you get an Economic Impact Payment (EIP) that was less than you expected? The federal government is sending EIPs to help mitigate the effects of COVID-19. If you’re under a certain adjusted gross income (AGI) threshold, you’re generally eligible for the full $1,200 ($2,400 if married filing jointly). And if you have a “qualifying child,” you’re eligible for an additional $500. Some people have received EIPs for less than they were expecting because they make too much money to receive the full EIP. Others may think their children are eligible for a payment and they aren’t. Still others may have debts, such as past-due child support or garnishments from creditors, that reduced their EIPs.
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