Insights
ARPA tax break may make child care less expensive
The new American Rescue Plan Act (ARPA) provides eligible families with an enhanced child and dependent care credit for 2021. This is the credit available for expenses a taxpayer pays for the care of qualifying children under the age of 13 so that the taxpayer can be gainfully employed. Note that a credit reduces your…
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Changes to premium tax credit could increase penalty risk for some businesses
The premium tax credit (PTC) is a refundable credit that helps individuals and families pay for insurance obtained from a Health Insurance Marketplace (commonly known as an “Exchange”). A provision of the Affordable Care Act (ACA) created the credit. The American Rescue Plan Act (ARPA), signed into law in March 2021, made several significant enhancements…
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Did you make donations in 2020? There’s still time to get a deduction
If you’re like many Americans, letters from your favorite charities may be appearing in your mailbox acknowledging your 2020 donations. But what happens if you haven’t received such a letter — can you still claim a deduction for the gift on your 2020 income tax return? It depends. What is required To support a charitable…
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Business highlights in the new American Rescue Plan Act
President Biden signed the $1.9 trillion American Rescue Plan Act (ARPA) on March 11. While the new law is best known for the provisions providing relief to individuals, there are also several tax breaks and financial benefits for businesses. Here are some of the tax highlights of the ARPA. The Employee Retention Credit (ERC). This…
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The Restaurant Revitalization Fund
The $1.9 trillion COVID-19 relief bill enacted on March 11, 2021, the American Rescue Plan Act of 2021 (ARP), established a $28.6 billion Restaurant Revitalization Fund (RRF), which will be administered by the Small Business Administration (SBA). Funding for the New Program Of the $28.6 billion set aside for the RRF, $23.6 billion is available…
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HR News You Can Use
On March 11, 2021, President Biden signed into law The American Rescue Plan Act (ARPA). This legislation includes several notable items for employers, including an extension of tax credits for voluntary COVID related sick leave and emergency family leave as well as premium assistance for COBRA coverage. Extension of Families First Coronavirus Response Act (FFCRA)…
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Educators can now deduct out-of-pocket expenses for COVID-19 protective items
On February 4, 2021, the IRS announced (Rev. Proc. 2021-15 PDF) that eligible educators can deduct unreimbursed expenses for COVID-19 protective items to stop the spread of COVID-19 in the classroom. Eligible COVID-19 protective items include, but are not limited to: face masks disinfectant for use against COVID-19 hand soap hand sanitizer disposable gloves tape, paint…
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What Sureties and Bonding Agents Look For In a Contractor’s Financial Statements
Danny Shobe, CPA, CCIFP Member, Charleston Office As you look to enter a New Year after celebrating another Christmas and New Year’s holiday season, most of you are shifting your focus to closing out the books for your business including the preparation of the year-end financial statements and tax returns. Obviously this can be a…
Read MoreEmployee Retention Credit Changes in the Consolidated Appropriations Act, 2021
CARES Act As part of the CARES Act passed in March of 2020, Congress created two mutually exclusive incentives that would provide funds to business owners designed to allow them to keep employees on staff throughout the pandemic: Paycheck Protection Program (PPP) Employee Retention Credit (ERC) The ERC is a refundable payroll tax credit that…
Read MoreFlexible Savings Account modifications
Increased Carryover for 2020 – Plan Year 2020 Dependent Care FSAs and Health Care FSAs may be amended to allow a carryover of all unused contributions into the 2021 plan year. Increased Carryover for 2021 – Plan Year 2021 Dependent Care FSAs and Health Care FSAs with a plan year ending in 2021 may be…
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