Business Startup Solutions

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

COVID-19 Disaster Assistance Programs

COVID-19 Disaster Assistance Programs This information is current as of 4/21/2020.   Economic Injury Disaster Loan (Includes up to $10,000 Emergency Grant) SBA Economic Injury Disaster Loan (EIDL) The U.S. Small Business Administration (SBA) is providing low-interest rate federal disaster loans for small businesses and non-profits who have been affected by COVID-19. Currently, small businesses can borrow up to $2M in assistance and the interest rates are 3.75% for small business and 2.75% for non-profits. These loans have long-term repayment options, the maximum being a 30-year term.  Funds have currently been all used up, but they are expected to be replenished. These lo

Is the IRS Shutdown?

Is the IRS Shutdown? The American Society of Tax Problem Solvers solicited the below information directly from the IRS and the short answer is no, they are not closed. Generally, the IRS is not conducting any in-person meetings, however the Taxpayer Advocate Office and the Automated Collections System are still working. Although certain divisions are closed, the IRS remains open and is performing its duties. Regular processing times may be slower than normal as more of their employees are working remotely and are unable to conduct person-to-person business. Field examinations are suspended, although the examination may continue to take place remotely if possible.   Do I need to b

Back Taxes and Coronavirus Stimulus Checks

Back Taxes and Coronavirus Stimulus Checks On March 27, 2020 President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The CARES Act contains various provisions for small businesses, unemployment, and individual $1,200 stimulus payments from the federal government. Married couples can receive up to $2,400 and for each dependent child, taxpayers will receive an additional $500.   Calculate how much you’ll get from the $1,200 (or more) coronavirus checks:   Who is eligible for the stimulus payments? Taxpayers who have an adjusted gro

Business Interruption Insurance and Covid-19 / Coronavirus

Business Interruption Insurance and Covid-19 / Coronavirus Adam Shay CPA, LLC is committed to assisting businesses and individuals proactively respond to the global economic crisis seeded by Covid-19. This article examines the current opportunities for business owners to claim relief from existing insurance policies that cover business interruption and the current debate between insurers and federal, state and local governments. What is Business Interruption Insurance? Business Interruption Insurance, also known as business income coverage, helps replace lost income and pay for expenses when a business suffers an impact by a covered loss. The most common covered losses include fire, wind,

Coronavirus, Taxes, and NC Unemployment

Coronavirus, Taxes, and NC Unemployment The world has been turned upside down in the past few weeks.  It’s really had an impact on businesses, employees, and personal finances.  Our goal during this time is to keep people up-to-date with the most recent information.  The place we are doing that most frequently on an ongoing basis is our Adam Shay CPA Facebook page.  This information is current as of March 20, 2020.   Income Tax Related The personal and C corporation income tax filing deadlines are now 7/15/2020.  The IRS has also announced that they will allow the delay of payments originally due on 4/15/2020 to 7/15/2020.  Those payments include personal 2019 income t

2020 Nourish NC Tax Season Food Drive

2020 Nourish NC Tax Season Food Drive Did you know that 1 in 4 children struggle with hunger in New Hanover County? And, did you know that over 16,000 people in New Hanover County live in food deserts? Nourish NC’s research has found that food insecure children are more likely to: Experience chronic illness & weakened immune systems. They are sick more often, are slower to recover from illness, and are hospitalized more often. Have impaired concentration, poor academic performance and increased grade repetition. Have higher school absences and late arrivals. Have lower math and reading scores. Have higher levels of behavioral & emotional issues. Adam Shay CPA,

How to reach us?

Adam Shay CPA, PLLC

1721 Allens Ln #210

Wilmington, NC 28403

(910) 256-3456

[email protected]