Achieving a Better Life Experience Act, ABLE, accounts help people with disabilities and their families save and pay for disability-related expenses. They allow states to create tax-advantaged savings programs for eligible people with disabilities, and distributions are tax free if they are used for qualified disability expenses.Read More
Employers that provide full pay for employees who take time off to get and recover from a COVID-19 vaccination are eligible for a paid-leave tax credit.
The tax credit is available to organizations with fewer than 500 employees and covers up to $511 per day for each vaccinated employee.Read More
New guidance further specifies which small businesses qualify for grants. Interested business owners must also pre-register to access the application. Pre-registration begins on April 19 at 9am. The application itself will be available through a phased approach, starting with businesses that didn't apply or weren't approved for Phase 3 funding.Read More
Governor Murphy recently signed two bills establishing more grant funds for small businesses in New Jersey.
The first program puts $25 million towards grants for microbusinesses, meaning companies with five or less employees. This program is expected to follow previous programs and microbusinesses would be eligible for $1,000 per employee with a maximum of $5,000.Read More
The American Rescue Plan Act (ARPA) raises pretax contribution limits for dependent care flexible spending accounts (DC-FSA) for the 2021 calendar year. A dependent care FSA is a pretax benefit account used to pay for services such as day care, preschool, summer camps, and before or after-school programs.Read More
The PPP Extension Act of 2021 passed in the U.S. Senate yesterday and is expected to be signed into law by President Biden. The bill extends the Paycheck Protection Program (PPP) application deadline from March 31, 2021 to May 31, 2021. The bill will also provide the Small Business Administration (SBA) with an additional 30 days to process pending applications. It does not provide any additional funding for the current round of the PPP.Read More
California employers must provide employees with up to 80 hours of COVID-19 supplemental paid sick leave for eligible employees, including those advised to quarantine or isolate and those caring for COVID-impacted family members.Read More
The American Rescue Plan Act (ARPA) does not require Families First Coronavirus Response Act (FFCRA) paid and emergency family leave, but does extend and expand the tax credits for employers. ARPA extends these tax credits through September 30, 2021.Read More
New Jersey and New York have extended the filing deadline to May 17, 2021, following the IRS.
Only a small number of states have not extended their filing deadline. First quarter estimated taxes are still due on April 15.Read More
New York State employers must provide employees with up to four hours of paid time off per COVID-19 vaccination. The law takes effect immediately and ends on December 31, 2022. Similar legislation is pending in other states and jurisdictions.Read More
The IRS has extended the federal filing deadline to May 17, 2021.New Jersey and New York have not extended their deadlines at the time of publication.Read More
Yineth joined the KRS team late February working as a bookkeeper. She provides clients with write-ups, AP/AR, and monthly reconciliations. She has a Bachelor’s degree in Business Administration. Welcome, Yineth!Read More
President Joe Biden signed into law the latest round of COVID-19-related legislation. The American Rescue Plan Act is intended to provide additional relief to workers and employers through tax credits, expanded federal unemployment benefits, and additional small-business aid.Read More
The U.S. Small Business Administration (SBA) issued new Paycheck Protection Program (PPP) rules that allow self-employed individuals who file Form 1040, Schedule C, Profit or Loss From Business, to calculate their maximum loan amount using gross income instead of net profit.Read More
KRS Managing Partner Maria Rollins, CPA, MST, was named by ROI-NJ as one of the people who will have the biggest influence on everything affecting business in the state for the third year in a row.Read More
PPP loans given to New Jersey businesses during the COVID-19 pandemic will be exempt from state income taxes.
The federal government already stated PPP loans are exempt from federal taxes.Read More
One month into the new year and we welcome yet another new member to the KRS team!
Tom Farish joins us as a Senior Tax Accountant and will be involved in the preparation of income tax returns for business, individual, and fiduciary purposes. He will also supervise and train staff.Read More
The New Jersey Economic Development Authority (NJEDA) will open pre-registration for Phase 2 of the Small Business Emergency Assistance Loan Program on Wednesday, February 10, at 9 am. The $10 million program expansion will support New Jersey small businesses and nonprofits impacted by the COVID-19 pandemic.Read More
We're grateful to be operating during these crazy times. We're even more grateful to continue our internship program, onboarding three new interns.
Get to know Jake, Sarah & Faith. They will be working with us to make the tax season a better experience for our clients.Read More
The Consolidated Appropriations Act, 2021 (CAA), was signed into law on December 27, 2020. Among many changes and updates to the prior legislation for COVID-19, this law clarifies and expands the Employee Retention Credit (ERC) that was created by the CARES Act.
If your business did not previously claim this credit due to eligibility, it may now qualify. Also, if you have previously claimed this credit, you may now be eligible for an enhanced benefit.Read More
The U.S. Small Business Administration (SBA) and Treasury issued guidance late Wednesday night for the reconstituted Paycheck Protection Program (PPP). Under PPP2, businesses are eligible for a second PPP loan of up to $2 million, if they meet certain provisions.
The new bill also creates a simplified forgiveness application process for first round PPP loans of $150,000 or less.Read More
Please help us welcome Tahsin Islam and Alfonso Toxtli, who recently joined our firm as staff accountants - just in time for the start of the new tax season!Read More
$900 billion package includes critical funding and policy changes to help small businesses and nonprofits recover from the pandemic.
Congress has passed and President Donald Trump is expected to sign a $900 billion coronavirus relief package. The legislation includes a $300 weekly unemployment supplement, $600 direct payments and nearly $300 billion in Paycheck Protection program loans.Read More
Tune in and listen to KRS manager Lance Aligo, CPA, on the Strategies & Ideas for Business podcast as he discusses where things stand now with Paycheck Protection Plan loan forgiveness. He covers the status of the forgiveness application process and the potential for a second round of funding and how it will differ. He also talks about important IRS rulings on expenses covered by the loan and which loan types are certain to be audited by the SBA.Read More
Get started now on Form 1099-Misc and New Form 1099-NEC and avoid penalties.
Form 1099-NEC is required to be filed with the IRS and the recipient by February 1, 2021, using either paper or electronic filing procedures.
Form 1099-Misc is required to be filed with the IRS by March 1,2021, if you file on paper, or March 31, 2021, if you file electronically. The recipient is required to receive Form 1099-Misc by February 1, 2021.Read More
There has been a lot of media coverage regarding additional stimulus packages and a second round of Paycheck Protection Program funding (PPP2).
No legislation has been enacted and no applications can be submitted, at time of release of this article.Read More
Join our Tuesday, December 1, 2020, 11:00 AM webinar and find out what's going on with the PPP program.
If you are a business owner and a PPP participant, you likely have many questions as the program draws to an end. In this webinar, the KRS CPAs team will provide insights on PPP updates, the loan forgiveness application process, income tax impacts, and future implications.Read More
The Coronavirus Aid, Relief and Economic Security (CARES) Act enacted to provide relief in response to the coronavirus (COVID-19) pandemic includes a provision to waive Required Minimum Distributions (RMDs) during 2020 for individual retirement accounts (IRAs) and retirement plans, including for beneficiaries with inherited accounts.Read More
The Pass-Through Business Alternative Income Tax Act (BAIT) allows pass-through businesses to pay income taxes at the entity level instead of the personal level. Most pass-through entities are owned by an individual or group of individuals. Income from that entity flows through to the owners and the owners pay tax on the income.
Enacting this legislation allows New Jersey taxpayers a way to work around the $10,000 limitation by allowing pass-through entities to pay income tax instead of the individual.Read More
Governor Phil Murphy signed Executive Order No. 192, which mandates workplace health and safety standards during the COVID-19 pandemic.
The executive order, which goes into effect on November 5th at 6am, will require all New Jersey employers in both the private and public sector (including non-profits and governmental/educational entities) to follow all health and safety protocols outlined in the executive order.Read More
Although some employees may choose to vote by mail during the COVID-19 pandemic, others will want to cast their ballots in person. They may have the right to take time off from work to do so depending on state law.Read More
The U.S. Small Business Administration has released SBA Form 3508S, a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less.
The new form allows borrowers to self-certify they used the money appropriately and receive complete forgiveness.Read More
When the COVID-19 pandemic was declared a national emergency earlier this year, it triggered Section 139 of the Internal Revenue Code.
Under Section 139, employers can provide tax-free payments or reimbursements to employees for certain expenses associated with a qualified disaster — such as the COVID-19 crisis.Read More
We are excited to announce we have been honored with the New Jersey Business and Industry Association’s 2020 Awards for Excellence.
This year’s NJBIA awards acknowledge four executives and 16 companies who have improved the quality of life in New Jersey in outstanding ways. We are one of four Outstanding Employers being honored for creative and forward-looking approaches to HR management.Read More
The IRS has revised Form 941, Employer's Quarterly Federal Tax Return, to accommodate COVID-19-related employment tax credits granted under the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security Act (CARES).
This article explains which tax credits are allowed under FFCRA and CARES, the changes made to Form 941, and how to use it to claim credits.Read More
The IRS has published its annual list of "dirty dozen" tax scams.
They publish this list every year, but 2020 is special, as the scammers have managed to turn the pandemic to their advantage.Read More
On September 8, Roanne Isip joined the KRS Team as our new Receptionist/Administrative Assistant. Daily, she helps manage the flow of the office anywhere from phone calls and mail to assisting her colleagues with anything they may need.Read More
The Department of Labor (DOL) issued new questions and answers related to new school schedules and paid leave under the Families First Coronavirus Response Act (FFCRA).
Additionally, the DOL released a letter on expanded unemployment eligibility under the Pandemic Unemployment Assistance provisions.Read More
With the pandemic being a national emergency that involves an infectious disease, you must take precautions when recalling your employees to the work site.
This article offers four suggestions to utilize in your return-to-the-office plans, including ideas for establishing workplace safety protocols.Read More
According to IRS Notice 2020-65, the employee Social Security tax deferral may apply to payments of taxable wages to an employee that are less than $4,000 during a bi-weekly pay period, with each pay period considered separately. No deferral is available for any payment to an employee of taxable wages of $4,000 or above for a bi-weekly pay period.
Our CPAs do not recommend utilizing this tax deferral at this time. This article is meant to apprise our clients of this optional program. If you are considering this tax deferral, you should contact your accountant immediately to discuss the possible issues that could arise.Read More
The CARES Act temporarily suspended required minimum distributions (RMDs) for retirement plans. If you already withdrew the required amount, you have until this Monday, August 31, to return the funds to the original account from which they were withdrawn.
Returning the funds will reduce your taxable income for 2020 and may allow for tax planning opportunities such as ROTH conversions.Read More
Small businesses in a few dozen New Jersey towns can apply to receive up to $10,000 in federal funding to help pay their rent under the new Small Business Lease-Emergency Assistance Grant Program.
The program will be managed by the New Jersey Redevelopment Authority and will disburse $6 million in federal CARES Act funding to small businesses that qualify in 64 of the Garden State’s 565 municipalities. This is a grant and not a loan, meaning those who receive it won’t have to repay it or apply for any kind of forgiveness.Read More
Legislation in 2019 — the Taxpayer Certainty and Disaster Tax Relief Act — resurrected or extended several income tax breaks. But Congress giveth and taketh away, and several of them will expire at the end of 2020. Among those scheduled to end: the deduction for qualified tuition and related expenses, medical expenses deductions, and the credit for energy-efficient home improvements.
Learn about the other deductions due to expire in this informative article.Read More
Has the pandemic inspired you to explore new ways to engage with customers, co-workers and clients?
Using texts, webcasts and social media can help businesses and enable individuals to stay in touch, answer customers' questions, communicate business status, build trust, and demonstrate team value.Read More
KRS is extremely proud to be recognized among the 2020 Best and Brightest in the Nation for our dedication to building a great culture for our employees!Read More