Federal loans aim to help small businesses survive coronavirus slowdown
Washington — Michigan officials are seeking a declaration from the federal government that would make low-interest disaster loans available to the state’s small businesses that are struggling as the coronavirus pandemic slows consumer spending. Gov. Gretchen Whitmer on Monday officially notified the U.S. Small Business Administration that she is seeking an Economic Injury Disaster Loan Declaration for the state, […]
Disaster relief for small business and employees
LANSING, Mich. (WLUC) – Monday, Governor Gretchen Whitmer signed Executive Order 2020-10 to temporarily expand eligibility for unemployment benefits. This executive order is effective immediately and until Tuesday, April 14 at 11:59 p.m. Under the governor’s order, unemployment benefits would be extended to: Workers who have an unanticipated family care responsibility, including those who have childcare […]
An Alternative to Layoffs
Polk & AssociatesLarge enough to serve a diverse clientele, yet small enough to maintain a hands-on approach, we are committed to maintaining the highest accounting and ethical standards with continuous education, extensive research resources, and excellent quality control. Polk and Associates is a member of the Michigan Association of Certified Public Accountants, and the American […]
Coronavirus Communication Update
To Our Clients, Our top priority remains with the health and safety of our clients and our staff, during the coronavirus outbreak and flu season in general. As we have mentioned in earlier communications, we at Polk have invested significantly in order to take advantage of improvements in technology and Go Green. An additional advantage […]
How’s your buy-sell agreement doing these days?
Most companies wouldn’t go into business without property or liability insurance. Businesses with multiple owners need to use an additional risk-management tool: the buy-sell agreement. If yours has yet to create one, start the process as soon as possible. Even if you have a buy-sell, there are a couple elements to regularly review: funding and valuation. For many businesses, payouts for a buy-sell agreement are funded with life insurance or disability buyout insurance. Look carefully at the policy’s details in relation to the agreement. A valuation should be performed upon creation of the buy-sell and periodically thereafter to assess changes in company value. Contact us for more info.
Home is where the tax breaks might be
If you own a home, the interest you pay on your home mortgage may provide a tax break. However, many people believe that any interest paid on home mortgage loans is deductible. Unfortunately, that’s not true. First, you must itemize deductions in order to deduct mortgage interest. And the deduction is limited. From 2018-2025, you can’t deduct the interest for mortgage acquisition debt greater than $750,000 ($375,000 for married taxpayers filing separately). From 2018-2025, there’s no deduction for home equity debt interest. But interest may be deductible on a home equity loan, home equity credit line, etc., if the proceeds are used to substantially improve or construct the home.
Work Opportunity Tax Credit extended through 2020
A recent tax law extended a credit for hiring people from 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 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, 2019. But a law passed late last year extends it through Dec. 31, 2020. Contact us with questions or information about your situation.
Digital documents with e-signatures aren’t going away
If your business hasn’t yet adopted the technology to use digital documents with e-signatures, you may want to reconsider. When you can review and sign a business document online, it can be transmitted instantly and approved much more quickly than a paper one. A trusted provider should be able to outfit you with software that not only allows you to use digital docs with e-sigs, but also keep the resulting files encrypted and safe. Most important, today’s customers increasingly expect digitized business transactions. We can assist you in evaluating whether now is the time to “go digital” and, if so, in setting a reasonable budget for the software purchase and implementation.
Give your 401(k) plan a checkup at least once a year
Just as you presumably visit your doctor annually for a checkup, you should review the administrative processes and fiduciary procedures of your 401(k) plan at least once a year. Study your plan’s investment choices to determine whether the selection available to participants is appropriate. Calculate the amount of current participant fees associated with your plan’s investments and benchmark them against industry standards. Document how your plan selects and monitors investment managers and solicit participants’ feedback on the plan administrator’s performance. Last, but certainly not least, ensure your plan is fully in compliance with current regulations. Contact us for more info.
Tax credits may help with the high cost of raising children
If you’re a parent, or if you’re planning on having children, you know that it’s expensive to pay for their food, clothes, activities and education. Fortunately, there’s a tax credit available for taxpayers with children under the age of 17, as well as a dependent credit for older children.
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