Business Startup Solutions

Employee Retention Credit (ERC) Audits

Employee Retention Credit (ERC) Audits Are you getting the right advice? Congress created the Employee Retention Credit, a refundable tax credit, to encourage businesses to keep employees on the payroll while the business was shutdown due to the Covid-19 pandemic or experienced significant declines in gross receipts between March 13, 2020 and December 31, 2021. In general, to be eligible for the ERC an employer had to meet one of the following criteria: An employer experienced a full or partial cessation of business operations due to orders from the government that limited travel, commerce, etc. due to the Covid-19 Pandemic; Experienced a significant decline in gross receipts du

2021 NC Budget - Income Tax Implications

2021 NC Budget - Income Tax Implications On November 18th, Governor Cooper signed the NC budget into law. While there are many things in the budget, we are going to highlight some of the  bigger income tax implications. Business Owners NC now conforms with IRS tax treatment on several Covid related measures. As a result, items like Paycheck Protection Program (PPP), Economic Injury Disaster Loans (EIDLS), and Shuttered Venue and Restaurant Revitalization Grants no longer have adverse impacts to NC Income taxes. Action Item: Taxpayers with any of these items should evaluate amending their 2020 income tax returns. The 2021 corporate income tax rate will be 2.5% and it will gradually

The Incentive Stock Option Tax Trap

The Incentive Stock Option Tax Trap With the recent nCino initial public offering and stock market surging back to pre-pandemic highs, we are receiving a lot of questions about tax planning for incentive stock options (ISOs).   From a tax perspective, ISOs are arguably the most complex type of stock option.  The purpose of this article is to cover some of the high-level tax considerations for ISOs and highlight the need for income tax projections and income tax planning when it comes to ISOs. ISOs are defined in the Tax Code as an option granted to an employee of a corporation (private or public) to purchase stock of the corporation if certain conditions are met[1]. Those who earn ISO

PPP Loan Forgiveness

PPP Loan Forgiveness We are currently accepting clients to provide consulting services as it relates to PPP loan forgiveness. The fee for this service is dependent on the amount of your PPP loan. If the amount of your PPP loan is less than $150,000, the fee for this service is $950. If the amount of your PPP loan is greater than $150,000, the fee for this service is $2,500.   The fee includes the following as it relates to PPP loan forgiveness: Initial telephone conversation to gain access to payroll files and accounting system. Explanation of PPP loan forgiveness as it stands currently. Assistance gathering and organizing documentation to apply and substantiate PPP lo

PPP Round 2 Introduction

Payroll Protection Program Second Draw Program Adam Shay CPA, PLLC is available to help assist you in applying for the SBA Payroll Protection Program Second Draw Program (PPP 2).   There are additional requirements for PPP 2 that were not required in PPP 1. Please understand it is not guaranteed you will qualify even if you received PPP 1 funds previously. We will perform an analysis to determine if you would qualify under the new PPP 2 rules. The price for this service is a flat $500.   Should we determine you qualify for PPP 2, for an additional flat $1,000 we will perform the following: Assist management's gathering of the relevant information in order for mana

NC Annual Report Scheme

NC Annual Report Scheme If you own a business in NC, you may have recently received a Solicitation to file your NC Annual report for a fixed fee that is above and beyond the cost to do so with the Secretary of State (SOS). While the mailings appear to be official, they are not affiliated with the NC SOS. Similar mailings were sent out last year and the NC SOS posted an alert warning business owners about the scheme. We are advising clients NOT to have this company file your annual report, due to risks listed in the NC SOS alert (linked below). We recommend filing your NC Annual Report online via the NC SOS website. NC SOS: Solicitation for Services Alert:

Should Companies Participate in Social Security Tax Deferrals?

Should Companies Participate in Social Security Tax Deferrals? On August 8th, President Trump signed an executive order that would allow employees that make less than $104,000 to defer the collection of the employee side Social Security taxes.  The Treasury Secretary has indicated that an employer can decide if their company will participate or not.  As an employer, should you?  It’s tough to say, but we’ll try to lay out the pros and cons of each possibility.   If your company participates: Employees that make less than $104,000 will have more cash in their pockets.  The employee cash increase would be 6.2% of each paycheck. There is the possibility that the defe

Paycheck Protection Program (PPP) Interim Final Rule

This information is current as of 5/26.   Friday evening the SBA released a new Interim Final Rule regarding the Paycheck Protection Program (PPP). There still remains a lot to be clarified, but among other things it did clarify that bonuses paid to employees count towards forgiveness compensation calculations as long as it meets other stipulations required for full forgiveness (i.e. < $100K in annualized pay, etc). We are getting lots of questions about forgiveness as many businesses approach the end of their 8 week forgiveness period. You should really proactively plan during your 8 week period. After you've reached the end of your 8 week period, if you are confident

Mitigating Risks of PPP Loans

Mitigating Risks of PPP Loans This information is current as of 5/13/20.  If you have questions or are considering taking action, you should speak with a CPA or attorney to discuss your specific situation.   The Payroll Protection Program (“PPP”) was written, launched and implemented as a swift response to the economic hardships of COVID-19 on small businesses. It was clear from the initial launch that details of the program would be forth coming. However, these details have been sporadic and vague at best, leaving many to wonder and speculate on both loan forgiveness and possible future PPP audits. On April 28, 2020 U.S. Treasury Secretary Steven T. Mnuchin, along with

Paycheck Protection Program Loan Forgiveness

Paycheck Protection Program Loan Forgiveness If you receive funds from the Paycheck Protection Program (“PPP”)  we want to ensure that you are able to receive the maximum amount of loan  forgiveness.  You should not make expenditures you would not otherwise incur just so that you receive full forgiveness of the loan.  We would like to offer you the following recommendations to account  for the loan proceeds:   All funds should be deposited into separate bank accounts. These funds need to be kept separate from any operating revenue bank account. You need to be able to account for all funds and how they were used separately. Establish a separate Class in your General