Business owners rely on their accountant to file taxes, provide them with reliable financial advice, and guide them on how to grow and operate their business. Working with the right accountant can make a big difference in the economic well-being of your business. Many business owners assume that their accountant knows what they are doing because they earned the Certified Public Accountant (CPA) designation, but putting that knowledge into practice is another story.
The Consolidated Appropriations Act, 2021 (CAA) was passed on December 27, 2020, and there has been anticipation surrounding changes to the Paycheck Protection Program (PPP). The funding has restarted the program for first-time applicants and created the opportunity to receive a second draw (PPP2) loan. The loan provides needed relief to those businesses, including hotels and restaurants that continue to struggle as the pandemic persists. Unfortunately, without guidance from the Small Business Administration (SBA), New Jersey and Pennsylvania businesses have been unable to act. Last week the SBA issued a new Interim Final Rule (IFR), which provides essential details regarding the PPP2 loan.
By JOHN BLAKE
The Consolidated Appropriation Act, 2021 (CAA) made several changes to the Paycheck Protection Program (PPP) to streamline forgiveness and make loans available for certain businesses. The changes include expanded eligibility, simplified forgiveness applications for loans less than $150,000, second draw loans, and affirmation of PPP forgiveness expense deductibility. However, without the details and specific guidance from the Small Business Administration (SBA), it has been unclear how companies should proceed. On January 6, 2020, the SBA issued an Interim Final Rule (IFR), Business Loan Program Temporary Changes; Paycheck Protection Program (PPP) as Amended by Economic Aid Act, that provides important details for first-time applicants.
The long-awaited second round of COVID-19 relief has finally come to fruition. Earlier this week, President Trump signed the Consolidated Appropriations Act, 2021 (the Act) into law, providing needed relief for individual, non-profits organizations, and businesses. This is the second COVID-19 relief bill that has passed since the pandemic’s first outbreak in March. While there are robust changes to the Paycheck Protection Program (PPP2) and business tax incentives, there were also important changes that directly benefit individuals.
By JOHN BLAKE
On December 27, 2020, President Trump delivered a late holiday gift to Princeton, Trenton, and other New Jersey-area businesses when he signed the COVID-19 relief bill into law. The Continuing Appropriations Act, 2021 (the Act) is only the second time Congress has passed COVID-19 relief to help sustain and bolster the economy. There had been months of debate about the type and amount of relief that left the process in limbo for most of the year. However, the good news is the Act provides significant tax changes, which will create new and expanded saving opportunities in the New Year.
By JOHN BLAKE
The impact of the COVID-19 pandemic continues to reverberate across the nation. Many businesses have been forced to make changes to operations, product/service offerings, vendors, financing, and capital investments. The real estate industry has been especially impacted as businesses have shifted to a remote workforce, and consumers have turned to online shopping. The change has led to a reduction in demand for both retail and commercial real estate. In New Jersey, Class A retail rent has dropped $.47 per square foot while commercial rents are falling with subleases on the rise.
On November 18, 2020, the IRS announced new requirements in the way businesses would report non-employee compensation. Previously, businesses used Form 1099-MISC to report all the miscellaneous income they paid out during the year. Now, the IRS has introduced Form 1099-NEC as an additional, and in some cases, alternative, reporting document. So, what should businesses know about the new 1099-NEC?
On the 10th Day of Taxmas, my accountant gave to me a review of my company structure.