New “PPP2” Funding Opens Today for Special Targeted Applicants
Opening to Remaining Applicants Expected Very Soon Application and Guidance Have Been Released Applications for a new fresh round of Paycheck Protection Program funds have now officially opened today. Initially this is only for targeted community lenders who specialize in working with women-led and minority-owned small businesses. Although we have not heard a definite timeline […]
Need another PPP loan for your small business? Here are the new rules
One item of interest for small business owners in the Consolidated Appropriations Act (CAA) is the availability of a second loan from the Paycheck Protection Program (PPP). The recently enacted CAA permits some small businesses who received a PPP loan to take out a “PPP Second Draw Loan” of up to $2 million. To qualify, you must employ no more than 300 employees per physical location, have used or will use the full amount of your first PPP loan, and demonstrate at least a 25% reduction in gross receipts during any quarter of 2020 (as compared with the same quarter in 2019). Additional rules apply. Contact us with any questions you might have about PPP loans.
The COVID-19 relief law: What’s in it for you?
The COVID-19 relief law that was signed recently contains many provisions that may affect you. The law provides for direct payments of $600 per eligible individual ($1,200 for a married couple filing jointly), plus $600 per qualifying child. The government has already started making bank direct deposits or mailing checks. Another provision extends a charitable donation tax deduction for individuals who don’t itemize deductions. For 2020, they can take up to a $300 deduction per tax return and for 2021, married joint filers can claim up to $600. These are only a few provisions in the new law. We’ll make sure that you get all the tax breaks you’re entitled to when we prepare your tax return.
New law doubles business meal deductions and makes favorable PPP loan changes
The COVID-19 relief bill, signed into law on December 27, 2020, contains numerous favorable tax breaks for businesses. For example, the new law includes a provision that removes the 50% limit on deducting business meals provided by restaurants and makes those meals 100% deductible. This rule applies to expenses paid or incurred in calendar years 2021 and 2022. The law also authorizes more money towards the Paycheck Protection Program (PPP) and extends it to March 31, 2021. In addition, it provides for the deductibility of PPP expenses paid with the loan proceeds. These are just a couple of the business-related provisions in the new law. Contact us if you have questions about your situation.
Your taxpayer filing status: You may be eligible to use more than one
For tax purposes, Dec. 31 is more than just New Year’s Eve. It will affect the filing status box that will be checked on your tax return. When filing a return, you do so with one of 5 tax filing statuses. The box checked on your return generally depends in part on whether you’re unmarried or married on Dec. 31. Here are the statuses: Single, married filing jointly, married filing separately, head of household and qualifying widow(er) with a dependent child. Head of household status can be more favorable than filing as a single person, but special rules apply. You must generally be unmarried, have a qualifying child (or dependent) and meet certain rules involving “maintaining a household.”
The right entity choice: Should you convert from a C to an S corporation?
The best choice of entity can affect your business in several ways, including the amount of your tax bill. Although S corporations can provide substantial tax advantages over C corporations in some cases, there are potential tax problems to assess before deciding to convert from C to S status. One issue to consider is last-in, first-out (LIFO) inventory. A C corporation that uses LIFO inventory must pay tax on the benefits it derived by using LIFO if it converts to an S corporation. Other issues to consider are the built-in gains tax, passive income tax and unused net operating losses. Contact us if you’re interested in an entity change. We’ll explain your options and the tax implications.
Prevent and detect insider cyberattacks
Dishonest workers can initiate a cyberattack by stealing valuable information from your company’s computer network and using it for personal gain. They could be working for a competitor, seeking revenge for perceived wrongs or they may need money to pay gambling debts. You can prevent insider cybercrime by monitoring IT use, removing network access as soon as an employee is terminated and always treating workers fairly. And don’t neglect to protect physical assets such as paper records and computer hardware. Restricting your office’s Wi-Fi to those with special passwords is also a good idea. Contact us with questions.
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 […]
Manufacturing faces talent problem heading into a crucial 2021
As manufacturing continues to lead both in statewide and nationwide economic recovery, the sector will still need to address a chronic issue that has only worsened throughout the COVID-19 pandemic. Talent shortages continue to dog manufacturers across Michigan as many companies have not been subtle about their desperate need for more workers. “We have employers […]
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