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
Janice Silberstein has retired after almost 30 years as a CPA. Janice has been a key member of KRS CPAs since the firm’s inception in 2005. She has been an integral part of the firm’s growth and success.Read More
KRS will be closed on Friday, July 3, in observance of Independence Day. We will resume normal business hours on Monday, July 6.Read More
The Senate passed a five-week extension of the Paycheck Protection Program (PPP) yesterday only hours before the application deadline.
The extension is intended to provide more time for small businesses to apply for the approximately $129 billion in PPP funding remaining. The measure will have to pass in the House and be signed by President Trump before the new deadline of August 8th would take effect.Read More
The CARES Act enabled any taxpayer with required minimum distributions (RMD) due in 2020 from a retirement plan to forgo the RMD this year. This included 401(k), 403(b), and IRA plans.
The IRS released Notice 2020-51, which states that anyone who already took an RMD in 2020 from certain retirement accounts now has the opportunity to roll those funds back into a retirement account.Read More
The Small Business Administration (SBA) has issued a new interim final rule for determining payroll costs and owner compensation in calculating Paycheck Protection Program (PPP) loan forgiveness under the new 24-week covered period.Read More
The Small Business Administration (SBA) has released a three-page “EZ” Paycheck Protection Program loan forgiveness application. The EZ Loan Forgiveness Application is meant to reduce the burden on smaller businesses and borrowers by requiring fewer calculations and less documentation.
The new application is part of the SBA’s efforts to comply with the Paycheck Protection Flexibility Act (PPPFA), which became law on June 5, 2020.Read More
Applications for the NJEDA’s Small Business Emergency Assistance Grant Program Phase 2 open on Tuesday June 9, 9am. Phase 2, with $45 million available, offers larger grants (up to $10,000) and expanded eligibility to New Jersey’s small businesses, home-based businesses, sole proprietorships, and 501(c)(3), 501(c)(4), and 501(c)(7) nonprofit organizations.Read More
The Senate passed the House’s version of the Paycheck Protection Flexibility Act. The bill now goes to President Donald Trump, who is expected to sign it.
Among the chief provisions: current PPP borrowers can choose to extend the eight-week period to 24 weeks, or they may keep the original eight-week period. In addition, the payroll expenditure requirement has been reduced from 75 percent to 60 percent of the loan.Read More
Both the House and Senate are working to make changes to the Paycheck Protection Program (PPP).
Last night, the House passed the Paycheck Protection Program Flexibility Act. The act makes several key changes to the PPP, among them increasing the timeline to use funds from eight weeks to 24 weeks.Read More
The Treasury and U.S. Small Business Administration (SBA) issued additional guidance on the conditions for PPP loan forgiveness as well as loan review procedures, and borrower and lender responsibilities.Read More
The U.S. Small Business Administration (SBA) released new guidance for Paycheck Protection Program (PPP) loan forgiveness.The instructions and application form is meant to help borrowers apply for forgiveness of their PPP loans in accordance with the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The form includes several measures to reduce compliance burdens and simplify the process for borrowersRead More
The SBA has determined that borrowers with loans below the $2 million threshold are less likely to have had access to adequate sources of liquidity than borrowers that received larger loans at this time.
Borrowers with loans greater than $2 million that do not satisfy this safe harbor may still have an adequate basis to meet the required good-faith certification. If the SBA determines that a borrower lacked an adequate basis, the borrower will be required to repay the outstanding PPP loan balance and the lender will be informed that the loan is not eligible forgiveness.Read More
New law expands the NJ Family Leave Act and provides employees forced to take time off to care for a family member during the COVID-19 outbreak with up to 12 weeks of unpaid family leave in a 24-month period without losing their jobs.Read More
A few weeks ago, the SBA announced that borrowers should be prepared to demonstrate the basis for good faith certification in requesting a loan from the Paycheck Protection Program (PPP).Any borrower who applied for a PPP loan prior to the issuance of this guidance and repays the loan in full will be deemed by SBA to have made the required certification in good faith.
The SBA has extended the repayment deadline to May 14, 2020 for borrowers who requested a loan in the first round of funding.Read More
If an employer offers to rehire an employee and the offer is declined, it will not have a negative effect on the Full Time Equivalent (FTE) reduction calculation for PPP loan forgiveness. Some rules, however, apply.Read More
Among the latest updates to the FFCRA: After a grace period, the DOL has officially ramped up its enforcement efforts but encourages employers and employees use their educational online tools to avoid violations. Additional guidance provided for small business exemptions, self-quarantine, and a timeline for paid sick leave.Read More
The U.S. Small Business Administration (SBA) issued more regulations for the Paycheck Protection Program (PPP).
The new regulations relate specifically to loan disbursement and corporate group eligibility.Read More
The Paycheck Protection Program and Health Care Enhancement bill passed last week gave a $310 billion replenishment to the PPP after all funds were depleted after less than two weeks.
The U.S. Small Business Administration (SBA) issued another round of regulations on the program shortly before it resumed accepting applications from participating lenders on Monday.Read More