When the Infrastructure Investment and Jobs Act was signed into law on November 15, 2021, it opened the door for necessary repair and upgrades to the nation’s crumbling infrastructure. The massive spending bill calls for a $1.2T investment in roads and bridges, power grids, rail services, broadband access, water infrastructure, airport development, and environmental remediation. When Congress was negotiating the legislation, there was significant concern about how it would be funded without inflating the national debt. This need for funding resulted in the early termination of the Employee Retention Credit (ERC). It has been estimated that the move will save the federal government $8B, redirected to offset expenses.

As auditors prepare for the upcoming year-end of December 31, 2021, they should be aware of the changes coming to auditor’s reports as a result of the implementation of Statement on Auditing Standards (SAS) No. 134, Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements, and other related SASs.

As we previously blogged about, the IRS issued Notice 2021-49 on August 4, 2021, which included guidance on claiming the credit after July 1, 2021. The Notice contains a provision concerning related individuals, of which many companies may not be aware. Essentially, if any of the company employees are family members of the majority owner, their wages do not qualify for the ERC like the wages of other non-related company employees.

Life happens – and fast. For many of us, before we can even register that it happened, we’ve — Sold a home Received an inheritance Had a new grandchild Started a business Moved across the country Got a promotion — or had any number of exciting new experiences. It’s important to track these major life […]

On November 5, 2021, the House passed the Infrastructure Investment and Jobs Act (the Act), comprehensive legislation that calls for a $1.2T investment in the nation’s aging infrastructure. Initially, there will be $550B allocated over five years to upgrade bridges, roads, transit, rail, water systems, electrical grids, and broadband.

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.