To account for cost of living adjustments and inflation, the Social Security wage cap will be $147,000, and Social Security and Supplemental Security Income (SSI) benefits will increase by 5.9 percent. Wage Tax for Social Security Tax The Federal Insurance Contributions Act (FICA) tax on wages is 7.65 percent each for the employee and the employer. […]
Social Security Wage Cap & Benefit Amounts Increase for 2022 Read More »
The IRS has reminded taxpayers to develop emergency preparedness plans due to an active hurricane season, the ongoing threat of wildfires in some parts of the country and other natural or man-made disasters that can occur. Taxpayers should: Secure critical documents such as tax returns, birth certificates, deeds, titles and insurance policies inside waterproof containers
Make Sure You Are Prepared for a Disaster Read More »
This comes up quite frequently, but it is still important enough for the IRS to issue a reminder about correctly determining whether the individuals providing services to businesses were employees or independent contractors. Keep in mind that an employee performs services that a business controls. Independent contractors offer their services to multiple businesses or the
IRS is Watching How You Classify Workers Read More »
If your business owns or leases luxury vehicles, this could be important to your 2021 tax planning. Luxury Passenger Car Depreciation Caps The luxury car depreciation caps for passenger cars placed in service in 2021 are limited to the following annual depreciation deductions: $10,200 for the first year without bonus depreciation $18,200 for the first year
IRS Issues Luxury Auto Depreciation Caps and Lease Inclusion Amounts Read More »
The IRS has issued guidance for employers claiming the employee retention credit. In general, eligible employers can claim a refundable employee retention credit against the employer share of Social Security tax equal to 70% of the qualified wages they pay to employees after December 31, 2020, through June 30, 2021, limited to wages paid of $10,000
How to Claim Employee Retention Credit in Q3 and Q4 of 2021 Read More »
Are you still waiting to hear of your PPP loan was forgiven? You are not alone. PPP Direct Forgiveness Portal The SBA announced that it is launching a streamlined application portal to allow borrowers with PPP loans $150,000 or less through participating lenders to apply for forgiveness directly through the SBA. The new forgiveness platform
PPP Direct Forgiveness Portal Created & Why the Loan Questionnaire Was Discontinued Read More »
If you travel for business, you will likely have expenses to write off in one of two ways: recording actual expenses (with back-up receipts) or using per diem rates established by the IRS. Starting October 1, 2021, new per diem rates will go into effect for taxpayers to substantiate the amount of “ordinary and necessary”
IRS Updates Per Diem Rates Read More »
The much-discussed Infrastructure Investment and Jobs Act passed by a vote of 69-30 in the Senate in mid August. The next step will happen next week when the Senate is scheduled to vote on the budget resolution that will make implementing this act possible. Like any bill of this magnitude, it contains numerous provisions. While
Infrastructure Bill Could Put an End to Employee Retention Tax Credits Read More »
No one likes to receive an unexpected bill, especially from a healthcare provider. With that in mind, the Departments of the Treasury, Labor, and Health and Human Services have issued interim final rules and identical proposed regulations to implement provisions of the No Surprises Act. On December 27, 2020, the Consolidated Appropriations Act, 2021 (CAA),
Interim and Proposed Regulations for No Surprise Billing Act Read More »
Investors have been discussing whether a traditional or Roth IRA is best as long as they have both been around. One factor that might tip the scales toward a Roth is a downturn in the value of your investments. If you have a traditional IRA, a decline may provide a valuable opportunity to pay less
Should You Convert Your IRA to a Roth? Read More »
Does your business sell meals? If so, you may be eligible to retain the sales tax collected on the sale of these meals due to legislation recently enacted by the Connecticut General Assembly. Who Qualifies? Businesses that sell meals in Connecticut Businesses included in Sector 72 of the North American Industrial Classification System (NAICS). Click
Sales Tax Benefit for Businesses that Sell Meals Read More »
It is sad, but when there is a chance to prey on people, there is always someone that takes that opportunity. This time it is a number of scams where fraudsters are using the advance Child Tax Credits to try to steal your personal information and money. (For our latest post on the advance Child
Beware of Child Tax Credit Scams Read More »