Insights
Tax Alert: Payroll Tax Deferral Began Sept 1
The U.S. Department of Treasury and Internal Revenue Service (IRS) issued official guidance for taxpayers on the “payroll tax holiday” ordered by President Donald Trump in early August as part of COVID-19 relief. The guidance provides a temporary respite from Social...
Payroll Tax Deferral Starts Today – Employer Can Elect In or Out
On August 28, 2020, the Department of Treasury and Internal Revenue Service (IRS) issued official guidance for taxpayers on the payroll tax deferral ordered by President Donald Trump on August 8, 2020. The notice allows employers to defer withholding on compensation...
You Have Received Your PPP Loan, Now What?
More than 4 million small businesses have applied for and received their Paycheck Protection Program (PPP) loan. The next logical question is: How do you account for it? There has been some discussion that PPP loans are not really debt, but in substance, are...
What does the Executive Action Deferring Payroll Taxes Mean for Employers and Employees?
On August 8, 2020, President Trump signed an executive memorandum that defers an employee’s portion of Social Security and Medicare taxes from September 1 through December 31, 2020. At this point, the taxes are just deferred, meaning they’ll still have to be paid at a...
Retroactive California Tax Hike Proposed by Legislature
Democrats in the California state legislature have proposed a significant tax hike on taxable income of $1 million and higher. Legislators say the tax hike would raise more than $6 billion a year to help K-12 schools and government services hurt by the coronavirus...
PPP Loan Extension Gives Small Businesses 5 More Weeks
President Trump signed a bill into law on July 4, 2020 that extends the Paycheck Protection Program (PPP) deadline for five more weeks until August 8. The original deadline to apply for the PPP was Tuesday, June 30, however $130 billion still remained in the fund. The...
PPP Loan Flexibility & Maximizing Forgiveness
The Paycheck Protection Program Flexibility Act recently became law to provide additional flexibility on the use of Paycheck Protection Program (PPP) funds and make it easier for businesses to qualify for full loan forgiveness. Among the changes are an expansion of...
IRS Guidance Provides RMD Rollover Relief
The CARES Act was enacted in an attempt to mitigate the economic effects of the COVID-19 pandemic. Among other things, it extends favorable tax treatment to qualified individuals who take so-called “coronavirus-related distributions” (CRDs) from IRAs, 401(k) plans and...
New Law Improves PPP Loan Flexibility & Forgiveness
The recently approved Paycheck Protection Program Flexibility Act (PPPFA) provides businesses with much-needed flexibility regarding the use of Paycheck Protection Program (PPP) funds and eases the requirements for full loan forgiveness. Changes include: An expansion...
IRS Denies Deductions for Expenses Paid by PPP Loans
The IRS has recently confirmed that they will not allow taxpayers to claim tax deductions for expenses that were paid by PPP loans that were forgiven, even for recurring expenses like wages and rent that are normally deductible. The majority of each PPP loan is...
