PPP and the Employee Retention Credit (ERC)

PPP and the Employee Retention Credit (ERC)New legislation from the Consolidated Appropriations Act, 2021 creates a chance for some companies to take advantage of both Paycheck Protection Program (PPP) loans and the Employee Retention Credit (ERC). Several changes specific to the ERC can provide an opportunity for additional relief for companies. The significant changes that…

PPP 1 VS PPP 2

PPP1 is winding down but for some there are still considerations. Since the tax liability on the PPP loan has been eliminated, but the expenses used to offset the PPP1 funding can be deductible, this could create a Net Operating Loss. The CARES Act included a Net Operating Loss Carryback feature. In short, if your…

PPP Application Dates Announced

The application window for Paycheck Protection Program (PPP) forgivable loans will open Friday for lenders with $1 billion or less in assets, the US Small Business Administration and Treasury announced. The opening, which will take place at 9 a.m. ET and applies for both first- and second-draw PPP loans. The program will begin accepting applications…

Consolidated Appropriations Act

The recently enacted Consolidated Appropriations Act, 2021 contains a wide range of tax, appropriations, and other provisions, including pandemic-specific provisions and extensions of provisions in the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Although the following is quite long, we believe it provides an excellent summary of some of the key tax provisions of the…

New COVID-19 Relief Bill

New COVID-19 Relief Bill The $900 billion COVID-19 Relief Bill, which was tied to a $1.4 trillion resolution to fund the government through September 2021, or the Consolidated Appropriations Act, 2021 (5,593 pages) that was passed December 21, 2020, provides $600 stimulus payments to individuals, adds $300 to extended weekly unemployment benefits, and provides more…

Form 1099-NEC and Form 1099-MISC

Form 1099-NEC and Form 1099-MISC Prior to tax year 2020, businesses typically filed Form 1099-MISC to report payments totaling $600 or more to a nonemployee for certain payments from the trade or business. These payments generally represent nonemployee compensation and, up until now, would typically appear in Box 7 of 1099-MISC. Beginning with tax year…

Utah Small Business Quarantined Employee Grant Program

Utah Small Business Quarantined Employee Grant Program The $2 million Small Business Quarantined Employee Grant uses federal CARES Act funds as part of Utah’s response to the COVID-19 pandemic. It provides reimbursement to small business employers (less than 50 employees) who pay employees to stay home during quarantine or isolation for a maximum of 40 hours…

Employee Payroll Tax Deferral Update

Employee Payroll Tax Deferral Update On August 8, 2020, President Trump signed an executive order allowing employers to defer the withholding and payment of the employee share of Social Security taxes from September 1 through December 31, 2020. As the executive order left many unanswered questions, the IRS later released a notice on August 28,…