New legislation means new benefits for agency owners! Under the Consolidated Appropriations Act passed in December, you’re now eligible for both PPP loan money AND tax credits for employees. Here’s everything you need to know about the Employee Retention Tax Credit (ERC) and what it means for you. What is the Employee Retention Tax Credit (ERC)? The Employee Retention Tax Credit is a refundable tax credit (up to $7,000 per employee per… Read more
You’ve probably heard the news that a new PPP package was passed this week. Here are the highlights: PPP income is NOT Taxable. And purchases made with the funds are eligible for deductions. New PPP loans are on the way. There is a new tax credit in place. PPP is not taxable The biggest news of all. After the PPP 1.0 rollout, guidance was lacking and there was confusion over whether or not purchases made… Read more
With just 2 weeks left in 2020, now is the time to act if you want to save on your taxes. If you’re like most agency owners, you’re not making the best decisions for your business taxes: You’re not optimizing owner pay You’re set up in the wrong entity structure You’re leaving deductions on the floor Or worse, you don’t have a tax plan at all. You’re trusting your CPA… Read more
Unfortunately, there’s not a straightforward answer, yet. Within the CARES Act, Congress says that PPP recipients whose loans are forgiven are not required to treat the income as taxable. But the IRS says that expenses paid with PPP funds are not deductible. While not requiring you to pay income tax directly on the PPP money, this is a roundabout way of making sure you will pay taxes on it. Wiping… Read more
Two Components: The Emergency Paid Leave Act (EPLA) The Emergency Expansion of Family Medical Leave (EFMLA) #1 – EPLA The employee must not be able to work at all (remotely or on-site) due to any of the following: The employee is subject to any federal, state, or local quarantine A health care provide advised the employee to self-quarantine The employee has symptoms of the virus The employee is caring for… Read more