Archives for ppp

Significant Tax Provisions from Biden’s American Rescue Plan Act

March 18, 2021 | by | Comments Off on Significant Tax Provisions from Biden’s American Rescue Plan Act

Richard A. Huffman, CPA, MST Tax Partner   The American Rescue Plan Act signed into law by President Biden includes the following significant tax provisions: Business tax provisions: Family and sick leave credits – Extends tax credits through 9/30/21. Employee retention credit – Extended through 12/31/21, program criteria as follows: To qualify experienced a full or partial suspension of business operations due to COVID-19 governmental orders or incurred at least 20% decline in quarterly gross receipts as compared to the 2019 year quarter. Main benefits for employers with up to 500 full-time employees (limited benefits for employers with more than
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Categories: Industry News and Newsletter and Updates.
Tags: accountant, accountants, accounting, accounting firm, american rescue plan act, biden, business, ca, california, certified public accountants, coronavirus, covid, covid19, cpa, cpa firm, firm, individual, IRS, irvine, law, oc, orange county, pandemic, ppp, small business, so cal, southern california, stimulus bill, stimulus plan, tax, tax bill, tax firm, tax law, tax provisions, tax reform, taxation, taxes, wfy, wright ford young, and wright ford young & co.

CA Lawmakers Reach COVID Relief Deal Including Partial PPP Conformity

February 18, 2021 | by | Comments Off on CA Lawmakers Reach COVID Relief Deal Including Partial PPP Conformity

Richard A. Huffman, CPA, MST Tax Partner   The long awaited recently announced California pandemic relief package includes the following benefit highlights for businesses and individuals: California partial conformity to federal tax treatment of Paycheck Protection Plan loans allowing companies to deduct up to $150,000 in expenses covered by the PPP loan (including Economic Injury Disaster Loan grants). Increase the funds available for the small business and nonprofit grant program (2018 or 2019 gross revenues less than $2.5M) from $500 million to more then $2 billion.  Information regarding this grant program can be found at the following link: https://www.grants.ca.gov/grants/california-small-business-covid-19-relief-grant-program/. Two
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Categories: Industry News and Newsletter and Updates.
Tags: accountant, accountants, accounting, accounting firm, business, ca, california, certified public accountants, coronavirus, covid, covid relief, covid19, cpa, cpa firm, firm, irvine, newsletter, oc, orange county, pandemic, pandemic relief package, ppp, small business, so cal, southern california, tax, tax firm, taxation, taxes, wfy, wright ford young, and wright ford young & co.

New COVID Relief Bill Expanded Employee Retention Credit Benefits

January 7, 2021 | by | Comments Off on New COVID Relief Bill Expanded Employee Retention Credit Benefits

Richard A. Huffman, CPA, MST Tax Partner   The recently enacted stimulus law expands and clarifies the CARES Act Employee Retention Credit (ERTC), key details are as follows: Beginning on January 1, 2021 and through June 30, 2021, the provision: Increases the credit rate from 50% to 70% of qualified wages. Expands eligibility for the credit by reducing the gross receipts decline from 50% to 20% over a prior quarter. Qualified wages are increased from $10,000 in total per employee to $10,000 per quarter per employee. Qualified wage restrictions apply at 500 employees, rather than 100. Removes the 30-day wage
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Categories: Industry News and Newsletter and Updates.
Tags: accountant, accounting firm, business owner, businesses, cares act, covid relief bill, cpa, cpa firm, credit, employee credit, employee retention credit, ertc, irvine, orange county, ppp, small business, so cal, stimulus, tax, tax benefit, tax firm, taxation, wfy, and wright ford young.

New COVID Relief Bill Signed Into Law

December 22, 2020 | by | Comments Off on New COVID Relief Bill Signed Into Law

Richard A. Huffman, CPA, MST Tax Partner   The House and Senate passed the Consolidated Appropriations Act, 2021 (CAA, 2021) which is expected to be signed into law by the President. The CAA, 2021 bill includes the renewal and expansion of popular provisions in earlier COVID relief bills with the significant provisions summarized as follows: Paycheck Protection Program (PPP) forgivable loan expenses allowed as a tax deduction (overriding IRS ruling disallowing the deduction). Uncertainty remains whether California and other states will conform. Reopen PPP for first time borrowers who have not yet applied or who previously withdrew their application. Second
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Categories: Industry News and Newsletter and Updates.
Tags: accountant, accountants, accounting, accounting firm, business, ca, caa, california, certified public accountants, consolidated appropriations act, coronavirus, covid, covid relief, covid relief bill, covid19, cpa, cpa firm, firm, irvine, newsletter, oc, orange county, pandemic, ppp, ppp loans, small business, southern california, tax, tax deduction, tax firm, taxation, taxes, trump, wfy, wright ford young, and wright ford young & co.

PPP Loan Forgiveness Taxability in 2020

November 20, 2020 | by | Comments Off on PPP Loan Forgiveness Taxability in 2020

Richard A. Huffman, CPA, MST Tax Partner Tony Maldonado, CPA Tax Senior   While the current law states forgiven Paycheck Protection Program (PPP) loans are tax-free, the Internal Revenue Service previously issued guidance stating that the qualifying expenses paid with the forgiven loan funds are nondeductible for income tax purposes.  There has been uncertainty as to whether the qualifying expenses would be non-tax deductible when paid in 2020 or when the loan is forgiven which could go into 2021. The IRS just recently released awaited guidance stating if your business received a PPP loan and there is a reasonable expectation
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Categories: Industry News and Newsletter and Updates.
Tags: accountant, accountants, accounting, accounting firm, business, ca, california, certified public accountants, coronavirus, covid, covid19, cpa, cpa firm, firm, irvine, law, newsletter, oc, pandemic, ppp, ppp loan, small business, so cal, southern california, tax, tax firm, tax law, tax planning, tax reform, taxation, taxes, wfy, wright ford young, and wright ford young & co.

SBA Releases PPP Flexibility Act Guidance and Revised Forgiveness Application Form

June 18, 2020 | by | Comments Off on SBA Releases PPP Flexibility Act Guidance and Revised Forgiveness Application Form

Richard A. Huffman, CPA, MST Tax Partner The Small Business Administration has released additional Paycheck Protection Program (PPP) guidance and revised the forgiveness application form to align with the Paycheck Protection Program Flexibility Act which was signed into law on June 5, 2020. Highlights of the updates are as follows: 1. For non-owners included compensation is 24 weeks of compensation up to $100,000 with a maximum per employee amount of $46,154. 2. For owners (S and C corporation owner-employees, self-employed individuals and general partners) the included compensation is the lesser of 2.5 months of 2019 compensation or $20,833. 3. Employer
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Categories: Newsletter and Updates.
Tags: accountants, accounting, accounting firm, audit, auditing, ca, california, cpa, cpa firm, ford, irvine, orange county, ppp, ppp loan, sba, southern california, tax, tax firm, taxation, wfy, wright, wright ford young, and young.

BREAKING NEWS: Significant Taxpayer Friendly Changes to the Paycheck Protection Program

June 4, 2020 | by | Comments Off on BREAKING NEWS: Significant Taxpayer Friendly Changes to the Paycheck Protection Program

Richard A. Huffman, CPA, MST Tax Partner The Senate just passed the House bill, called the Paycheck Protection Flexibility Act which is expected to be signed into law by the president.  The law will extend the Paycheck Protection Program (PPP) loan forgiveness period from eight weeks to twenty four weeks and reduce the payroll forgiveness spend requirement from 75% to 60%.  Loan recipients now have until December 31, 2020 to complete their twenty four week spend period and to meet the restoration of workforce and pay requirements. However, if at least 60% of the loan is not spent on payroll,
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Categories: Newsletter and Updates.
Tags: accountants, accounting, accounting firm, covid, cpa, cpa firm, cpa firm irvine, cpa firm orange county, cpa orange county, orange county, ppp, ppp loan, and wfy. wright ford young.

Non-Deductibility of PPP Related Expenses to the Extent of Forgiven PPP Funds (IRS Notice 2020-32)

May 4, 2020 | by | Comments Off on Non-Deductibility of PPP Related Expenses to the Extent of Forgiven PPP Funds (IRS Notice 2020-32)

Janet Kim, CPA, MST Tax Director   The IRS released Notice 2020-32 on April 30, 2020, which provides guidance on the deductibility of expenses paid with Paycheck Protection Program (PPP) loan proceeds that are forgiven and excluded from the borrower’s income. The IRS has determined otherwise deductible expenses that are paid with PPP funds may not be deductible for federal income tax purposes to the extent the expenses were reimbursed by a PPP loan that was then forgiven. The PPP was created by Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Under the PPP, the
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Categories: Industry News and Newsletter and Updates.
Tags: cares act, certified public accountant, covid, covid19, cpa, irvine, orange county, pandemic, ppp, ppp loan, stimlus, tax, tax firm, wfy, and wright ford young.

Summary Analysis of Coronavirus Enacted Laws

April 1, 2020 | by | Comments Off on Summary Analysis of Coronavirus Enacted Laws

Richard A. Huffman, CPA, MST Tax Partner   With the recently enacted laws to help companies with the current Coronavirus pandemic, there has been confusion regarding which benefit programs will apply to what companies. In our efforts to assist you in which benefits can help you and your company, WFY has created a breakdown summary spreadsheet and flowchart below.    
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Categories: Newsletter and Updates.
Tags: accountants, accounting, benefits, california, cares act, certified public accountants, coronavirus, coronavirus help, covid, covid19, cpa, cpa firm, family first corona virus act, irvine, orange county, paycheck protection program, payroll tax credit, payroll tax deferral, ppp, sba loans, tax, tax benefits, tax firm, wfy, and wright ford young.