The President’s action to defer payroll taxes: What does it mean for your business?
President Trump has signed a Presidential Memorandum to defer the employee portion of Social Security taxes for some people. The action only defers the taxes, which means they must be paid in the future. However, the action directs the U.S. Treasury Secretary to explore ways to eliminate the obligation to pay the taxes deferred. Employers have questions and concerns. For example, will employers have to withhold more taxes from employees’ paychecks in the future to pay the taxes back? Without a law to forgive the taxes, will employers be liable to pay them? What if employers can’t change their software by the Sept. 1 start of the deferral? Is the deferral required? Contact us with questions.
New COVID – 19 Relief Bill Now Signed into Law by the President
Includes New PPP Funding for Previous PPP Recipients that Qualify New Simplified PPP Forgiveness Application for up to $150K Loans After much discussion regarding various elements of the bill (including the dollar amount of stimulus payments and various funding initiatives mainly in the omnibus spending portion of the bill) President Trump did eventually sign the […]
The Balanced Scorecard approach to strategic planning
In the early 1990s, the Balanced Scorecard approach to strategic planning was developed to enable business leaders to better organize and visualize their objectives. It segments a strategic plan into four critical areas: 1) Customers; how can you attract and retain customers that will build the bottom line? 2) Finances; how will leadership and employees drive your financial success? 3) Internal operations; in what business processes must you excel to maximize productivity, 4) Knowledge sharing and learning; how can you provide continuing education and preserve intellectual capital? Contact us for help identifying metrics and incorporating financial analysis into your strategic plan.
2021 Q1 tax calendar: Key deadlines for businesses and other employers
Here are a few key tax-related deadlines for businesses during Q1 of 2021. JAN. 15: Pay the final installment of 2020 estimated tax. FEB. 1: File 2020 Forms W-2 with the Social Security Administration and provide copies to employees. Also provide copies of 2020 Forms 1099-MISC to recipients and, if reporting nonemployee compensation in Box 7, file, too. MARCH 1: File 2020 Forms 1099-MISC if not required earlier and paper filing. MARCH 16: If a calendar-year partnership or S corp., file or extend your 2020 tax return. Contact us to learn more about filing requirements and ensure you’re meeting all applicable deadlines.
The next estimated tax deadline is January 15 if you have to make a payment
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If you’re self-employed and don’t have paycheck withholding, you probably have to make estimated tax payments. These payments must be sent to the IRS on a quarterly basis. The 4th 2020 estimated tax payment deadline for individuals is Friday, Jan. 15. Even if you do have some withholding from paychecks or other payments, you may still have to make estimated payments if you receive income such as Social Security, prizes, rent, interest and dividends. Generally, taxpayers send four equal installments. But people who earn income unevenly during the year (for example, from a seasonal business) may be able to send smaller payments. Contact us if you have questions about the estimated tax rules.
New Legislation Passes Both Senate and House
Expected to be Signed into Law this Week New PPP funds and Deductibility of Covered Expenses Provisions This week the US House and Senate passed a roughly $900 billion COVID-19 relief bill as a part of The Consolidated Appropriations Act, 2021 which effectively funds the federal government through its fiscal year end September 2021. It […]
Rightsizing your sales force
With a difficult year almost over, now may be a good time to assess the size of your sales force. A good place to start is with various key performance indicators (KPIs) that enable you to quantify performance in dollars and cents. For sales managers, you might want to look at average annual sales volume. For sales representatives, look to more granular KPIs such as sales by rep and lead-to-sale percentage. Rightsizing your sales department, however, isn’t only a mathematical equation. Consider whether you have adequate coverage when salespeople take time off and weigh the possibility you’ve hired too aggressively. Above all, look at whether your customers are satisfied. Contact us for help.
Can you qualify for a medical expense tax deduction?
Medical services and prescriptions are expensive. You may be able to deduct some expenses on your tax return but the rules make it difficult for many people to qualify. You may be able to time certain medical expenses to your tax advantage. For 2020, the medical expense deduction can only be claimed to the extent unreimbursed costs exceed 7.5% of your adjusted gross income. You also must itemize deductions. If your total itemized deductions will exceed your standard deduction, moving nonurgent medical procedures and other expenses into 2020 may allow you to exceed the 7.5% floor. This might include refilling prescriptions, buying eyeglasses, going to the dentist and getting elective surgery.
Drive more savings to your business with the heavy SUV tax break
Are you considering replacing a car that you’re using in your business? Consider a heavy SUV, pickup or van because the caps on annual depreciation and expensing deductions for passenger automobiles don’t apply to them. SUVs rated at more than 6,000 pounds gross (loaded) vehicle weight qualify. In most cases, you can write off the entire cost of a new heavy SUV used entirely for business purposes as 100% bonus depreciation in the year it’s placed in service. Even if you elect out of bonus depreciation for the heavy SUV, you can elect to expense under Section 179 the cost of an SUV up to $25,900 for 2020. The remainder is depreciated under the usual rules. Other limitations may apply.
Paycheck Protection Program (PPP) Year End Updates
IRS Issues Guidance Tax Treatment of PPP Covered Expenses
New Potential Legislation Could Be Imminent By Weeks End
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