On March 11, President Biden signed the American Rescue Plan Act into law. It provides an income tax credit that will be paid in advance (in direct deposit or paper checks) to eligible individuals. Individuals will receive $1,400 ($2,800 for eligible joint return filers) plus $1,400 for each eligible dependent. The credit amount is reduced … Read More
Breakeven analysis can be useful when investing in new equipment, launching a new product or analyzing the effects of a cost reduction plan. During the COVID-19 pandemic, however, many struggling companies are using it to evaluate how much longer they can afford to keep their doors open. Fixed vs. variable costs Breakeven can be explained … Read More
The American Rescue Plan Act (ARPA), which was signed into law on March 11, extends the Employee Retention Credit from June 30 until Dec. 31, 2021. The law continues the rate of the credit at 70% for this extended time period. It also continues to allow for up to $10,000 in qualified wages for any … Read More
The use of audit analytics can help during the planning and review stages of the audit. But analytics can have an even bigger impact when these procedures are used to supplement substantive testing during fieldwork. Definition of “analytics” Auditors use analytical procedures to evaluate financial information by assessing relationships among financial and nonfinancial data. Examples … Read More
The IRS has issued a Tax Tip that provides instructions to employers on how to pay any employee payroll taxes that the employer deferred in 2020 as a result of a 2020 executive action from then-President Trump. The optional deferral applied to employees with less than $4,000 in wages every two weeks, or an equivalent … Read More
Are you a business owner thinking about hiring? Be aware that a recent law extended a credit for hiring individuals from one or more targeted groups. Employers can qualify for a tax credit known as the Work Opportunity Tax Credit (WOTC) that’s worth as much as $2,400 for each eligible employee ($4,800, $5,600 and $9,600 … Read More
During the COVID-19 pandemic, many people are working from home. If you’re self-employed and run your business from your home or perform certain functions there, you might be able to claim deductions for home office expenses against your business income. There are two methods for claiming this tax break: the actual expenses method and the … Read More
If you’re approaching retirement, you probably want to ensure the money you’ve saved in retirement plans lasts as long as possible. If so, be aware that a law was recently enacted that makes significant changes to retirement accounts. The SECURE Act, which was signed into law in late 2019, made a number of changes of … Read More
If you’re getting ready to file your 2020 tax return, and your tax bill is higher than you’d like, there might still be an opportunity to lower it. If you qualify, you can make a deductible contribution to a traditional IRA right up until the April 15, 2021 filing date and benefit from the tax … Read More
Did you know that you can put restrictions on charitable donations you make through your estate? If you want the peace of mind that your donations are used to fulfill your intended charitable purposes, you’ll need to take the steps to add restrictions. Reasons to add restrictions Even if a charity is financially sound when … Read More