PPP Loan Forgiveness

In the midst of Covid, many small businesses turned to Paycheck Protection Program (PPP) loans. These loans were meant to be forgiven and many will not have to be repaid. In order to qualify for loan forgiveness, companies must follow certain guidelines. Employee numbers as well as their compensation levels must have been maintained and at least 60% of the PPP money should have gone toward payroll costs. Keeping good records while distributing the money is very important as this will help when completing the paperwork required to apply for loan forgiveness. For more details, read, How to get your PPP loan forgiven from the Los Angeles Times.

Education Loan Relief

The federal government has extended its pause for education loans to those held by private companies. This is a big step in helping individuals with debts who have been adversely affected by the Covid pandemic, but advocacy groups want more and are calling for participants in the Federal Family Education Loan Program to be included as well. Qualifying education loans that went into default as of March 13, 2020 have been returned to good standing.

Relief extended to more than 1 million borrowers with privately-held student loans

Bots vs. Humans

Covid-19 has led some companies to turn to automation to deal with growing demand, closed offices, or budget constraints. But for other companies, the pandemic has provided cover for executives to implement ambitious automation plans they dreamed up long ago.

There’s a new employee in town, R.P.A. (robotic process automation) is beginning to take hold in professions across the board, making life easier for some and costing jobs for others. The workers most at risk for being affected when companies turn to these programs for increased ROI are the highly educated. Read more here: The Robots Are Coming for Phil in Accounting

Tax Return Questions? We’ve Got Answers!

2020 was a wild year. Many collected unemployment, received government stimulus checks, and worked from home, which brings a multitude of questions as tax filing season approaches. Tara Siegel Barnard for the New York Times offers answers to the most pressing tax inquiries and shares tips on how to save money. From teachers to retirees to charitable giving and student loans, she covers the bulk of current issues when filing your return. How the Pandemic Has Changed Your Taxes Need more help? Contact Debra at 512 484 8016.

Tax Time is Coming Soon!

It’s time to start gathering forms and data for your 2020 tax returns, if you haven’t already.  This time of year you may have many questions about your taxes, but one of the most important things to monitor is your withholding. Ever had a surprise tax bill that caused you financial hardship?  The best way to avoid this is by checking your withholding every year.  For more information on the right amount for you based on various factors, visit https://www.irs.gov/pub/irs-pdf/p5349.pdf and try their Withholding Estimator today! For all your other tax questions contact me, Debra Newby Watkins, CPA, 512 484 8016.

$15/Hour Minimum Wage?

Living wage, minimum wage, fair wage… There are many views on what these phrases mean and how best to apply them in the United States.  On Friday, 20 states and 32 cities and counties will raise their minimum wage. In 27 of these places, the pay floor will reach or exceed $15 an hour, according to a report released on Thursday by the National Employment Law Project, which supports minimum-wage increases. How will these increases affect small businesses and workers who may actually stand to lose their jobs because of the new rules?  Read more here, Once a Fringe Idea, the $15 Minimum Wage Is Making Big Gains.

Employer-Paid Tuition Assistance

Does your employer offer tuition assistance? If so, you may also be entitled to a tax write-off from these loans as well. Eligible expenses often include, books, tuition and fees, as well as supplies and equipment. If you receive more than $5,250 in a year, you must include the excess amount in taxable income. Also, qualified expenses used to justify your employer tuition assistance may not be used toward any other federal education tax benefits. For more information about these benefits, read: Employer-Paid Tuition Assistance.

Selling Marijuana, Don’t Forget to Pay Your Taxes

The IRS has dedicated a page on its website to Marijuana sales. Many states have approved the drug for medical uses and some for recreational use, but banks are still discouraged from doing business with these dispensaries and transactions are often made in cash.  Even though, just as other consumables, marijuana is subject to taxation and the IRS wants to make it clear to businesses what is expected for paying taxes.

From the site:   “The IRS understands this is a new and growing industry and provided frequently asked questions about record keeping, cash payment options, large cash amounts, and other related topics to help promote voluntary compliance in the industry,” said the IRS. “In addition to this page, the IRS also offers a wealth of general small business guidance and resources on IRS.gov.”  Want to know more? Visit https://www.accountingtoday.com/news/irs-adds-marijuana-industry-page-to-website

Where did money come from?

Metal coins, paper, crypto-coins, and banking, where did our current money systems originate? Listen to this fascinating podcast from Think, KERA to learn more. “The first writing was just accounting.” Sounds like CPAs invented writing.

The Invention Of Money
Jacob Goldstein, co-host of NPR’s “Planet Money,” joins host Krys Boyd to talk about how our world goes ‘round in large part because we’ve all swallowed hard and agreed to not ask too much about the real value of currency. His new book is called “Money: The True Story of a Made-Up Thing.”