On August 10, 2021, the IRS and the Department of the Treasury provided new guidelines regarding the Employee Retention Credit (ERC) via a safe harbor, allowing employers to exclude specific items from their gross receipts only when determining if the qualifications for the ERC are met.

Whether you are an insurance agency shareholder, partner, employee, or independent agent, you need to be aware of the tax treatment of reimbursed and unreimbursed business expenses. Like most businesses, agencies typically reimburse employees for ordinary and necessary business expenses. Depending on the circumstances, expense reimbursements may be treated as taxable income subject to federal income and employment taxes.

Among the many provisions of the American Rescue Plan Act (ARPA), enacted in March 2021, was one regarding the Consolidated Omnibus Budget Reconciliation Act of 1985, more commonly known as COBRA.  COBRA is a program that provides certain employees (and their spouses and dependents) the right to temporarily continue group health coverage at the group rate if they have lost it.  It generally applies to private-sector employers of 20 or more employees, employee organizations, and government workers at the federal, state, and local levels.

Several businesses (including some in New Jersey and Pennsylvania), individuals, families, and others dealing with estates and trusts have reported significant delays when dealing with the IRS. Not only does this include issues with receiving timely refunds, but also with communications and other services. This has many asking the question, “How are things going at the IRS?” According to recent research findings, not well.

When Congress passed the American Rescue Plan Act (ARPA)  in March 2021, it included expansions of the existing child and dependent care credit and the paid sick and family leave credit.  The IRS recently released some guidance on the expanded tax credits here and here.  Keep reading for a brief overview of what taxpayers and employers need to know about the expanded tax credits, why they’re important, and how they could affect you.

Cryptocurrency activity is everywhere, and it’s no longer just for the investment elite or bitcoin miners. Whether you’re investing in cryptocurrency or spending it, trading in digital currency can often feel like you’re not dealing with “real” money. But, this isn’t the case. Trading in cryptocurrency can have real federal income tax implications. This article will look at the six most effective ways to reduce taxes on your cryptocurrency gains. First, it’s worth looking at exactly how the IRS taxes cryptocurrencies so you can better understand your potential liabilities.

Have you made any large out-of-state purchases for yourself or your business this year? If so, you may have to pay New Jersey Use Tax. Use Tax applies when a purchase is made outside of New Jersey (be it online or via mail) for use in New Jersey and is taxed at the same rate as New Jersey sales tax: 6.625%.

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.

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.

On March 31, 2021, the Biden Administration released an overview of The American Jobs Plan (Plan), which broadly outlines a proposed $2T modernization investment in the nation’s transportation, environmental and digital infrastructure and spread over eight fiscal years. The Plan includes fixing highways, upgrading ports, airports, and other transit centers. It calls for the modernization of public buildings, including federal facilities, upgrades to water delivery infrastructure, and revitalization of American manufacturing and innovation.