IRS steps up audits of payroll and business taxes
The number of IRS notices for payroll taxes and business taxes for 2020 and 2021 are beginning to increase. In some instances, these notices are related to pandemic-era Employee Retention Tax Credits (ERTC) and Paycheck Protection Program (PPP) loans. These audits are time sensitive, so we recommend that should you receive a notice you contact your […]
Payroll tax rates and contribution limits for 2023
The payroll tax rates and contribution limits for 2023 have been released, and there are lots of changes. Below is a snapshot of those changes. Social Security tax In 2023, the Social Security tax rate is 6.2% for employers and employees, unchanged from 2022. The Social Security wage base is $160,200 for employers and employees, increasing from $147,000 in […]
IRS to send letters in January about Child Tax Credit payments
Families who received advance Child Tax Credit payments in 2021 will need to file a 2021 tax return and compare the advance Child Tax Credit payments they received with the amount of the credit they can claim on their 2021 tax return. To help taxpayers reconcile the advance payments, the IRS is sending in January […]
How small pay increases can have a big impact
The pressures of labor shortages are hitting restaurant owners especially hard, and many are looking to increase wages to recruit and retain workers. Even little adjustments, though, can result in significant impacts to the bottom line. Below is a good illustration of how increasing the pay of just five employees to $12 an hour can […]
Employers eligible for tax credits for paid time off for Covid vaccine
Employers can now apply for tax credits for wages paid to employees who help family members who obtain a COVID-19 vaccination. Credits were made available to employers through the American Rescue Plan Act of 2021 (ARPA) for qualified wages paid to employees who took leave as a result of the coronavirus. According to updated guidance […]
Reminder: Deferred payroll taxes to be repaid by year-end
Those employers who took advantage of deferring the employers’ portion of Social Security taxes under the Covid-relief CARES Act last year must repay 50% of the deferred amount by Dec. 31, 2021. The CARES Act – Coronavirus, Aid, Relief and Economic Security Act – codified former President Trump’s Presidential Memorandum issued in August 2020 in […]
Patience is in order if awaiting tax refund this year
If you are expecting a tax refund this year, you may have to wait a bit longer than usual. Between staff shortages, a backlog of returns from the 2020 filing season, processing Recovery Rebate Credits, validating income for the Earned Income Tax Credit and Additional Child Tax Credit – not to mention applying changes in […]
COBRA subsidy details: Notification deadline approaching
As part of the American Rescue Plan Act signed into law in March, employers can receive a 100% subsidy for extended COBRA coverage for employees who were terminated or who lost coverage because their hours were involuntarily reduced or they were involuntarily terminated, making them eligible for COBRA. While employers must bear the cost of […]
Restaurant Revitalization Grants ready to roll soon
The Small Business Administration has announced that registrations for the $28.6 billion Restaurant Revitalization Fund grants will open at 9 a.m. EST Friday, April 30, with the application officially open at noon EST Monday, May 3. The online application will remain open to any eligible establishment until all funds are exhausted. If you plan to […]
More guidance issued on Massachusetts sales and meals tax changes
We advised you a couple months ago that beginning April 1, Massachusetts had enacted accelerated remittance of sales and meals tax. Few details were available at that time, but the state has recently updated its guidance so we wanted to provide you more information. According to the state, businesses that had $150,000 or more in sales […]