IRS extends administrative relief for 401(k) plans
In Notice 2021-40, the IRS recently announced a 12-month extension (through June 30, 2022) of its temporary relief from the requirement that certain signatures must be witnessed “in the physical presence” of a 401(k) plan representative or notary public; instead, audio-video technology can be used. The relief was provided primarily to facilitate plan loans and distributions under the CARES Act, but it applies to any signature that is required to be witnessed in the physical presence of a plan representative or notary public. This includes spousal consents. Notice 2021-40 also requests comments regarding whether permanent modifications should be made. Contact us for more information.
IRS audits may be increasing, so be prepared
The IRS just released audit statistics for the 2020 fiscal year and fewer taxpayers had their returns examined compared with prior years. Overall, just 0.5% of individual returns were audited. Historically, this is very low. However, even though a small percentage of returns are being audited these days, that will be little consolation if yours is one of them. Plus, the Biden administration has announced it would like to increase tax compliance. The easiest way to survive an IRS audit is to prepare. On an ongoing basis, maintain documentation (invoices, bills, canceled checks, receipts, or other proof) for items reported on your returns. Contact us if you receive an IRS audit letter.
10 facts about the pass-through deduction for qualified business income
Are you eligible to take the deduction for qualified business income (QBI)? This valuable tax break is also referred to as the pass-through or Section 199A deduction. It’s available to owners of sole proprietorships, single member limited liability companies, partnerships and S corps. The deduction is intended to reduce the tax rate on QBI to a rate closer to the corporate tax rate. It’s available regardless of whether you itemize or take the standard deduction. The deduction is complex but is generally equal to 20% of qualified business income. There are two other limitations based on W-2 wages and on some “specified service trades or businesses.” Contact us with questions.
Gen Zers Are Being Lured Back Into the Rental Market
More young adults are being motivated by concessions and good deals to return to the rental market, according to new research from Zillow. More than a third, or 34%, of Generation Z renters, aged 18 to 25, who moved in the past year said they moved from a home of a family member or a […]
Rent Growth Returns to Pre-Pandemic Levels in May
Multifamily rents rose by 2.5% year over year in May, according to the latest Yardi Matrix Multifamily National Report—almost exactly matching the rent growth rate in March 2020, when the COVID-19 pandemic took hold. This is the first time since March 2020 that rent growth has returned to pre-pandemic rates at the national level; a […]
Joining the Automation Nation: Evolving Toward Remote Self-Storage Management
Last year was unprecedented for many self-storage businesses. COVID-19 forced operators of all sizes to implement new procedures to ensure employee and customer safety. Many leaned on technology to adhere to local requirements and stay open, including tools that allowed for remote management. It’ll be interesting to see if operators go back to “business as […]
MIOSHA Rescinds COVID-19 Emergency Workplace Rules
On Tuesday, 6/22/21, the Michigan Occupational Safety and Health Administration (MIOSHA) officially rescinded the existing COVID-19 Emergency Workplace Rules. The rules were replaced with a new standard for health care employers that is in alignment with the federal OSHA Emergency standard for health care settings. Because the COVID-19 rules were rescinded, decisions regarding the following […]
Plan For Emergency Action
Industry leaders are highly trained to recognize hazards and evaluate various levels of risk to anticipate negative outcomes and establish mitigation. No matter how thorough your plan, it’s always possible that unrecognized hazardous conditions exist that might delay an emergency response. To minimize the impact these unseen deficiencies might have on your overall response, start […]
Michigan to offer a 2-year, debt-free manufacturing degree program
Students interested in the manufacturing field will be able to earn a two year, debt-free degree following the launch of a new program in Jackson. The program is Michigan’s first Federation for Advanced Manufacturing Education (FAME) program and was launched through a collaboration of the Jackson Area Manufacturers Association (JAMA) and MICHauto, an initiative to […]
Eligible Businesses: Claim the Employee Retention Tax Credit
The Employee Retention Tax Credit (ERTC) is a valuable tax break that was extended and modified by the American Rescue Plan Act (ARPA). Originally, the ERTC applied to wages paid after March 12, 2020, and before Jan. 1, 2021. Congress later modified and extended the ERTC to apply to wages paid before July 1, 2021. The ARPA again extended and modified the ERTC to apply to wages paid after June 30, 2021, and before Jan. 1, 2022. The maximum ERTC available is generally $7,000 per employee per calendar quarter or $28,000 per employee in 2021. Other modifications have also been made that may be beneficial to your business. Contact us if you have questions about your business claiming the ERTC.
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