IRS Grants Breaks on FSAs and DCAPs
The IRS is providing some leeway to employee benefit plans offering health flexible spending accounts (FSAs) and dependent care assistance plans (DCAPs). Under the COVID-19-related Taxpayer Certainty and Disaster Tax Relief Act of 2020, these plans now have additional discretion in 2021 and 2022 to adjust their programs to help employees better meet the unanticipated […]
IRS Introduces the New Form 1099-NEC
The IRS has introduced a new Form 1099-NEC, Nonemployee Compensation. It’s a sibling to Form 1099-MISC and replaces it for certain purposes. You must file it for each person in the course of your business to whom you have paid at least $600 during the year for the following: Services performed by someone who is […]
Employees, Vaccines and Covid-19: What Are the Legal Issues?
After many long, anxiety-filled months, Covid-19 continues to be a factor in how safe people feel as they navigate the current world order. Businesses across the spectrum are creating a new normal with this reality as a dominant factor. Two prominent issues regarding Covid-19 and workplace safety are worth revisiting as the season changes and […]
FIFO or LIFO: Which Is Right for Your Business?
The way businesses value inventory can affect their taxes. It also affects the financial statements companies present to banks when they apply for loans. Businesses generally are allowed to use one method for their taxes and another for their financial statements. Although this can get complicated, choosing the best option for your business may allow […]
Can You Take Advantage of the Research and Development Tax Credit?
Many manufacturing companies fail to take advantage of the generous research and development (R&D) tax credit simply because they don’t have staff working in a lab. The Internal Revenue Service’s (IRS) definition of R&D is codified at Internal Revenue Code Section 41 and its related regulations — and it may not be exactly what you […]
Small PPP Loan Borrowers Get Big Break
According to a recent release from the Small Business Administration, borrowers can apply for forgiveness of their PPP loan using new SBA Form 3508S if the total PPP loan amount they received from their lender was $50,000 or less. “SBA Form 3508S requires fewer calculations and less documentation for eligible borrowers. Borrowers that use SBA Form 3508S are exempt from reductions in loan forgiveness amounts based on reductions […]
