Business charitable contribution rules have changed under the CARES Act
Atchley & Associates' Blog | The Go-To CPA Blog
by atchleycpasblog
4y ago
In light of the novel coronavirus (COVID-19) pandemic, many businesses are interested in donating to charity. In order to incentivize charitable giving, the Coronavirus Aid, Relief and Economic Security (CARES) Act made some liberalizations to the rules governing charitable deductions. Here are two changes that affect businesses: The limit on charitable deductions for corporations has increased. Before the CARES Act, the total charitable deduction that a corporation could generally claim for the year couldn’t exceed 10% of corporate taxable income (as determined with several modifications for ..read more
Visit website
Relief from not making employment tax deposits due to COVID-19 tax credits
Atchley & Associates' Blog | The Go-To CPA Blog
by atchleycpasblog
4y ago
The IRS has issued guidance providing relief from failure to make employment tax deposits for employers that are entitled to the refundable tax credits provided under two laws passed in response to the coronavirus (COVID-19) pandemic. The two laws are the Families First Coronavirus Response Act, which was signed on March 18, 2020, and the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act, which was signed on March 27, 2020. Employment tax penalty basics The tax code imposes a penalty for any failure to deposit amounts as required on the date prescribed, unless such failure is due ..read more
Visit website
Answers to questions about the CARES Act employee retention tax credit
Atchley & Associates' Blog | The Go-To CPA Blog
by atchleycpasblog
4y ago
The recently enacted Coronavirus Aid, Relief, and Economic Security (CARES) Act provides a refundable payroll tax credit for 50% of wages paid by eligible employers to certain employees during the COVID-19 pandemic. The employee retention credit is available to employers, including nonprofit organizations, with operations that have been fully or partially suspended as a result of a government order limiting commerce, travel or group meetings. The credit is also provided to employers who have experienced a greater than 50% reduction in quarterly receipts, measured on a year-over-year basis. IRS ..read more
Visit website
The new COVID-19 law provides businesses with more relief
Atchley & Associates' Blog | The Go-To CPA Blog
by atchleycpasblog
4y ago
On March 27, President Trump signed into law another coronavirus (COVID-19) law, which provides extensive relief for businesses and employers. Here are some of the tax-related provisions in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).  Employee retention credit The new law provides a refundable payroll tax credit for 50% of wages paid by eligible employers to certain employees during the COVID-19 crisis. Employer eligibility. The credit is available to employers with operations that have been fully or partially suspended as a result of a government order limiting commerc ..read more
Visit website
Beware: Coronavirus may affect financial reporting
Atchley & Associates' Blog | The Go-To CPA Blog
by atchleycpasblog
4y ago
The coronavirus (COVID-19) outbreak — officially a pandemic as of March 11 — has prompted global health concerns. But you also may be worried about how it will affect your business and its financial statements for 2019 and beyond. Close up on financial reporting The duration and full effects of the COVID-19 outbreak are yet unknown, but the financial impacts are already widespread. When preparing financial statements, consider whether this outbreak will have a material effect on your company’s: Supply chain, including potential effects on inventory and inventory valuation, Revenue recognition ..read more
Visit website
Work Opportunity Tax Credit extended through 2020
Atchley & Associates' Blog | The Go-To CPA Blog
by atchleycpasblog
4y ago
If you’re a business owner, be aware that a recent tax law extended a credit for hiring individuals from one or more targeted groups. Employers can qualify for a valuable tax credit known as the Work Opportunity Tax Credit (WOTC). The WOTC was set to expire on December 31, 2019. But a new law passed late last year extends it through December 31, 2020. Generally, an employer is eligible for the credit for qualified wages paid to qualified members of these targeted groups: 1) members of families receiving assistance under the Temporary Assistance for Needy Families program, 2) veterans, 3) ex-fe ..read more
Visit website
New rules will soon require employers to annually disclose retirement income to employees
Atchley & Associates' Blog | The Go-To CPA Blog
by atchleycpasblog
4y ago
As you’ve probably heard, a new law was recently passed with a wide range of retirement plan changes for employers and individuals. One of the provisions of the SECURE Act involves a new requirement for employers that sponsor tax-favored defined contribution retirement plans that are subject to ERISA. Specifically, the law will require that the benefit statements sent to plan participants include a lifetime income disclosure at least once during any 12-month period. The disclosure will need to illustrate the monthly payments that an employee would receive if the total account balance were used ..read more
Visit website
Numerous tax limits affecting businesses have increased for 2020
Atchley & Associates' Blog | The Go-To CPA Blog
by atchleycpasblog
4y ago
An array of tax-related limits that affect businesses are annually indexed for inflation, and many have increased for 2020. Here are some that may be important to you and your business. Social Security tax The amount of employees’ earnings that are subject to Social Security tax is capped for 2020 at $137,700 (up from $132,900 for 2019). Deductions Section 179 expensing: Limit: $1.04 million (up from $1.02 million for 2019) Phaseout: $2.59 million (up from $2.55 million) Income-based phase-out for certain limits on the Sec. 199A qualified business income deduction begins at: Married filing jo ..read more
Visit website
Common Tax Questions and Answers for Individuals
Atchley & Associates' Blog | The Go-To CPA Blog
by atchleycpasblog
4y ago
Q: Who is required to file a 1099-Misc? You must file a Form 1099-MISC for each person/vendor you have paid at least $600 in any of the following categories unless the payment was made to another business that is incorporated, but not for medical or legal services: Rents/Royalties Services Prizes and Awards Medical and Health care payments Attorney’s fees. You are required to have on file a completed Form W-9 for any vendor to which you pay $600 or more (by cash or check) for services in a calendar year. Although most corporations are exempt from receiving a 1099 (with the exception of attorne ..read more
Visit website
Nonprofits: Are you ready for the new contribution guidance?
Atchley & Associates' Blog | The Go-To CPA Blog
by atchleycpasblog
4y ago
When the Financial Accounting Standards Board (FASB) updated its rules for recognizing revenue from contracts in 2014, it only added to the confusion that nonprofits already had about accounting for grants and similar contracts. Fortunately, last year, the FASB provided some much-needed clarification with Accounting Standards Update (ASU) No. 2018-08, Not-for-Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made. Calendar-year nonprofits must follow this guidance when preparing their 2019 year-end financial statements. C ..read more
Visit website

Follow Atchley & Associates' Blog | The Go-To CPA Blog on FeedSpot

Continue with Google
Continue with Apple
OR