The light at the end of the tunnel is shining brighter for many New Jersey and Pennsylvania-area individuals and families. The distribution of the vaccine combined with reductions in COVID-19 cases has resulted in the rollback of government orders. As the end of the pandemic appears to be drawing closer, the unfortunate reality is that many businesses are still struggling to recover.
The COVID-19 pandemic has certainly created challenging economic conditions for New Jersey and Pennsylvania-area businesses. Unfortunately, the issues which occurred during the onset of the pandemic, including but not limited to high unemployment, limited access to working capital, and the need for modified business models, have yet to subside.
The Paycheck Protection Program (PPP) is one of the most popular COVID-19 relief programs offered by the Small Business Administration (SBA). There have been more than 132,000 and 150,000 loans issued in New Jersey and Pennsylvania, respectively.
In early March, President Biden signed the American Rescue Plan Act of 2021 (ARPA), the fourth economic relief package passed since the start of the COVID-19 pandemic. It contains several provisions to help families, businesses, and local governments deal with the resulting challenges, including a $350B State and Local Fiscal Recovery Fund, $10B Capital Projects Fund, $21B for emergency rental assistance, and expansion of the Employee Retention Credit.
While many sectors have started to recover from the devastating blow brought about by the COVID-19 pandemic, it appears that the construction industry is still struggling. The details of how this is happening are outlined in the March 2021 AGC Coronavirus Survey, published by the Associated General Contractors of America.
Audits are a necessary but sometimes disruptive part of running your business or nonprofit organization. Meeting with your auditor, gathering documents, and scheduling time for the auditor to do their fieldwork all have to be considered. Here are some tips to help make your audit more efficient, saving everyone time, money, and stress.
Much of the attention around the recently announced American Jobs Plan (Plan) has focused on how the federal government intends to pay the massive $2.3T price tag. As outlined in the plan, corporate taxes would be increased to 28%, enforcement activities expanded, and several new taxes on large companies would also be implemented. This has shifted attention away from the legislation’s purpose: to upgrade, repair, and bolster the nation’s physical and digital infrastructure
For New Jersey and Pennsylvania-area businesses substantially affected by COVID-19, the Employee Retention Credit (ERC) has been a valuable incentive to keep employees on the payroll. Since it was introduced in March 2020 as part of the CARES Act, the ERC has undergone several modifications and extensions, including those made in the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Relief Act) and again in March 2021 under the American Rescue Plan Act.
The American Rescue Plan Act of 2021 (ARPA), signed into law on March 11, 2021, not only contained provisions that affected individuals, businesses, and governmental entities, but it also had implications for accountants in regards to Single Audits. A Single Audit is an examination of an entity that spends $750,000 or more in governmental assistance per year, through funding such as grants and awards, to ensure that the funds are being spent properly and the entity complies with laws and regulations.
On April 8, 2021, the IRS issued Notice 2021-25 in conjunction with the Taxpayer Certainty and Disaster Relief Act of 2020. This Act grants a temporary exception to the 50% deduction limit for businesses on food and beverages provided by restaurants.
