As the financial and operational challenges created by the COVID-19 pandemic begin to subside, many New Jersey and Pennsylvania-area businesses are starting to turn the corner. It was recently reported by the U.S. Bureau of Labor and Statistics (BLS) that New Jersey added another 21,500 jobs in September, which means the state has reclaimed 68% of the jobs lost during the pandemic. In Pennsylvania, the unemployment rate has fallen to 6.7%, with parts of the state reporting a better 6.3%. A key reason so many businesses were able to survive during recovery is federal COVID-19 relief programs such as the Employee Retention Credit (ERC). 

Every year, businesses submit thousands of research and development (R&D) claims to the IRS and state taxing authorities for tax credits in the hundreds of millions of dollars.  Both corporations and individuals benefit from credits for research. Claims are filed in accordance with Internal Revenue Code (IRC) Section 41. If substantial, they can be subject to examination by the IRS and states, often using significant resources for both taxing authorities and taxpayers.  To improve tax administration and reduce the number of disputes over claims, the IRS released Notice 2021-203 on October 15, 2021.

The conditions created by the COVID-19 pandemic forced many businesses to make changes to adapt to the “new normal.” For example, the stay-at-home orders, social distancing requirements, and other customer/employee safety measures resulted in limiting the number of employees on the production floor, installing new barriers to prevent transmission, adding sanitization protocols, and much more. At the same time, office buildings were virtually empty as employees were permitted to work from home under remote work policies.

The Employee Retention Credit (ERC) is one of a handful of federal programs aimed at helping organizations and businesses maintain healthy operations through the ongoing COVID-19 pandemic. For nonprofits, programs like the ERC and the Paycheck Protection Program (PPP) can be the difference between providing services and having to shutter their doors.

Businesses will see their leases in a whole new light as they begin implementing the Financial Accounting Standards Board’s (FASB’s) new lease reporting standards. As was revealed in early 2016, the FASB will soon require almost all for-profit and nonprofit entities to start recording leases on their balance sheets and statements of financial position.

In a recent issue of NetAssets, Nonprofit & Education partner Chris Maynard authored an article, “Employee Retention Credit Accounting Guidance for Independent Schools.” The Employee Retention Credit (ERC) is one of a handful of federal programs aimed at helping businesses and nonprofit organizations maintain healthy operations through the coronavirus pandemic. For many independent schools, programs […]

The Biden Administration’s Build Back Better Act (the Act) is designed to reduce costs, create new jobs, and cut taxes for working families. In addition, there are proposed investments in health and childcare, higher education, workforce training, and teachers and schools. The cost of the legislation, which is estimated at $3.5T, will be paid for by increased taxes on corporations and the wealthiest Americans.