Launching a small business? Here are some tax considerations
- ByPolk & Associates
- Mar, 11, 2021
- All News & Information
- Comments Off on Launching a small business? Here are some tax considerations
While many businesses have been forced to close due to the COVID-19 pandemic, some entrepreneurs have started new small businesses. They may start out as sole proprietors. There are many tax considerations involved in operating that way. For example, you may qualify for a deduction on qualified business income. You must pay self-employment taxes and make estimated tax payments on income earned. If you hire employees, you need a taxpayer ID number and must withhold and pay employment taxes. Keep complete records of income and expenses. Also, consider setting up a qualified retirement plan. Contact us if you want more information about the tax aspects of your business.
PPP adjusted to prioritize very small businesses
- ByPolk & Associates
- Mar, 05, 2021
- All News & Information
- Comments Off on PPP adjusted to prioritize very small businesses
The Small Business Administration, in cooperation with the Biden administration, recently announced adjustments to the Paycheck Protection Program (PPP). The revisions seek to better reach very small businesses, as well as low- and moderate-income companies. Among the changes are an exclusive 2-week application period for businesses with fewer than 20 employees, which began on February 24. The changes also include a revision of the loan calculation formula to focus on gross (rather than net) profits, elimination of the non-fraud felony exclusion, eventual removal of the student loan exclusion and more. We can explain further and keep you updated on the PPP as the year goes along.
Retiring soon? Recent law changes may have an impact on your retirement savings
- ByPolk & Associates
- Mar, 05, 2021
- All News & Information
- Comments Off on Retiring soon? Recent law changes may have an impact on your retirement savings
If you’re approaching retirement, you probably want to ensure the money you’ve saved in retirement plans lasts as long as possible. If so, be aware that a law was enacted in late 2019 that made significant changes to retirement accounts. For example, the SECURE Act repealed the maximum age for making traditional IRA contributions. Before 2020, traditional IRA contributions weren’t allowed once you reached age 70 1/2. An individual of any age can now make contributions, as long as he or she has compensation and is otherwise eligible. The required minimum distribution age was also raised from 70 1/2 to 72. These are only some of the changes. Feel free to contact us with any questions.
Work Opportunity Tax Credit extended through 2025
- ByPolk & Associates
- Mar, 05, 2021
- All News & Information
- Comments Off on Work Opportunity Tax Credit extended through 2025
Are you a business owner thinking about hiring? Be aware that a recent law extended a credit for hiring individuals from one or more targeted groups. Employers can qualify for the Work Opportunity Tax Credit (WOTC), which is worth as much as $2,400 for each eligible employee, including ex-felons and from other groups. The maximum credit amounts are different for some employees ($4,800, $5,600 and $9,600 for certain veterans; $9,000 for long-term family assistance recipients; and $1,200 for summer youth employees). The WOTC was set to expire on Dec. 31, 2020. But a law passed late last year extends it through Dec. 31, 2025. Contact us with questions or information about your situation.