Another employee retention credit has come up. The question was submitted to me by an attendee in one of my webinars: Pertaining to wages paid in the first quarter after 3-12, does the entire paycheck qualify or only the portion of the paycheck that would be for days paid for hours worked after 3-12? The […]
So this is how it goes when you work with taxes. One day you look at something and come to one conclusion. The next day you look at the same thing and come to a different conclusion. Yesterday, I wrote about how shareholder wages don’t count toward the ERC. I have been engaged in a […]
The Families First Coronavirus Response Act (FFCRA) requires businesses with fewer than 500 employees to provide 2 weeks of paid sick leave to employees who contract COVID-19. The employer then receives a tax credit for those wages paid. Other nuggets about the leave: The credit is wages paid PLUS employer-side Medicare tax. The employer does […]
Even before COVID-19 happened, I had said this was the worst tax season ever. COVID was just the rancid cherry on top of a moldy cake. It’s easy to be negative and cynical — social media almost demands this attitude, I think. But I am not being cynical here. I spent nearly 3 hours writing […]
UDPATE: Not so fast on this. It looks like loan forgiveness for a sole proprietor is based on taking 2019 net income, dividing by 52 and multiplying by 8. Read this article in Forbes: https://www.forbes.com/sites/anthonynitti/2020/04/15/ten-things-we-need-to-know-about-paycheck-protection-program-loan-forgiveness/#27dbd8953291 And also see the AICPA frequently asked questions on this subject. https://www.aicpa.org/interestareas/privatecompaniespracticesection/qualityservicesdelivery/sba-paycheck-protection-program-resources-for-cpas/sba-payroll-protection-program-faqs.html Because of this new guidance, I am striking […]
I sent this out to my clients on Friday night and am posting in its entirety here for both my clients who check the blog but not their email, and for anyone else who is interested. ONE: FILING DEADLINE The Treasury Department announced today (Friday) that the filing deadline for tax returns has been pushed […]
One of the things I deal with every year is a client who sold a rental property and they have a capital gain from it, and the client is not pleased. The conversation always follows the same course. “I sold the rental for about the same as I bought it for, so no big deal.” […]
One of the topics that comes up often when talking to clients and other accountants is, the accounting service problem that small non-profits are facing. They need help from tax and accounting professionals. They can’t (or don’t want to…) pay full price. So they seek out affordable accounting pros. Most of the time these accounting […]
I try to be “proactive” with my clients, and I think most reputable accountants and tax preparers do too (despite what “experts” might say). One of the sticking points I have found, especially when dealing with average folks, is Roth accounts. Here’s an example: Taxpayer makes enough money to be able to max out their […]
How does the calculation for self-employment tax work when self-employment income is over the Social Security Wage Base? Let’s take a look. Basic Calculation When self-employment income is below the Social Security Wage Base, the calculation is straightforward. Let’s say your self-employment income is $50,000, well below the Social Security Wage Base. You take $50,000 […]
