The Economic Aid Act was signed into law on December 27, 2020. Now, the SBA has provided its initial interim final rules (IFRs) related to the Paycheck Protection Program (PPP). The IFRs have provided some clarity, but other questions still remain. These are the things you should be thinking about as of today, January 8, 2021. In […]
Employee Retention Tax Credit May be Available Retroactively
PPP Borrowers may want to delay applying for Loan Forgiveness The Consolidated Appropriations Act (CAA) approved last month provides that the Employee Retention Tax Credit (ERTC) is retroactively available to PPP borrowers. Only wages that were not paid with forgiven PPP loan proceeds qualify for the credit. An employer will need to elect which period […]
50% Limit on Business Meal Deductions Removed for 2021 & 2022
To provide additional economic relief to the restaurant industry caused by the coronavirus (COVID-19) pandemic, Congress included a provision in the Consolidated Appropriations Act (CAA, 2021) that removes the 50% limit on business meal deductions during 2021 and 2022. Business related meals provided by restaurants, included those served by takeout or delivery, are fully deductible […]
PPP Second Draw & Deductibility of Expenses Now Available
At the end of 2020, Congress passed, and President Trump signed, a new law that provides for additional relief related to the coronavirus (COVID-19) pandemic. This law, the Consolidated Appropriations Act, 2021 (CAA, 2021), includes a second draw of Paycheck Protection Program (PPP) loans (PPP Second Draw Loans). It also allows businesses to deduct ordinary […]
Rebuild! VA Small Business Grant Program Expanded
The Rebuild! VA Small Business Grant Program has made some changes. They’ve expanded eligibility requirements to any small business or nonprofit under $10 million in gross revenue or 250 or fewer employees and the grant can now be up to $100,000 (technically the lessor of $100,000 or 3 months of your business’ average reoccurring operating […]
2020 Year-End Tax Planning for Individuals
It’s more important than ever to think about 2020 year-end tax planning for individuals. However, there has never been a year quite like 2020. We think it is safe to say that year-end tax planning for 2020 is proving to be the trickiest in recent memory. In response to the Coronavirus, Congress and the IRS […]
2020 Year-End Tax Planning for Businesses
There has never been a year like 2020. It’s important to start considering your 2020 year-end tax planning for businesses. In response to the Coronavirus, Congress and the IRS have been exceedingly busy enacting and issuing never-seen-before tax relief for businesses and employers. Congress had little choice but to pass this complex legislation quickly, without […]
2021 Social Security Changes
The Social Security Administration (SSA) has announced that the wage base for computing the Social Security tax (OASDI) in 2021 will increase to $142,800. This is up from $137,700 for 2020. In addition, beneficiaries of Social Security and Supplemental Security Income (SSI) will receive a 1.3% cost of living adjustment for 2021. Click here for […]
New Regional Sales and Use Tax in Central Virginia Region
Effective October 1, 2020, the sales and use tax levied in the Central Virginia Region will be 6.0 percent, an increase of .7 percent over the existing 5.3 percent rate. The localities affected include the City of Richmond and the Counties of Charles City, Chesterfield, Goochland, Hanover (including the Town of Ashland), Henrico, New Kent, […]
Employees May Defer Social Security Taxes
Recent Treasury guidance permitting employers to defer employee Social Security taxes has been widely reported in the media. On August 8, 2020, the President of the United States issued a Presidential Memorandum deferring the withholding of and payment of the employee share of social security taxes for the period beginning on September 1, 2020, and ending on […]
