A SERP may sound like a creature from a science fiction movie, but it is actually a popular retirement savings vehicle for the top brass. Typically, the SERP—an acronym for Supplemental Executive Retirement Plan—is used to complement a 401(k) or other qualified plan. It offers generous benefits to a chosen few and enables an employer [...]
If you are starting up a new business venture as the pandemic abates, or buying an existing business, you may have to answer this question: When is the operation officially opening for business? This may be significant from a tax perspective. Reason: While “ordinary and necessary” business expenses are generally deductible, start-up expenses must be [...]
By: Kim Smith, CPA, Tax Shareholder Kim is a shareholder, a member of the JMF Tax Department and in charge of the JMF State and Local Tax (SALT) group. With over 20 years of experience, she assists clients with corporate, partnership, and individual income tax reporting as well as complex multi-state income and sales tax issues. On [...]
The new American Rescue Plan Act (ARPA) includes relief for both individuals and businesses. Case in point: A key provision in the new law provides tax-free COBRA subsidies to ex-employees for a limited period of time. To top things off, employers are entitled to a payroll tax credit for the resulting costs. Background: Under the [...]
We have just learned that some balance due notices have been issued by the Alabama Department of Revenue (ADOR) due to an error in their processing system. If your Alabama privilege tax return & payment were due March 15, and you sent your payment on or around that deadline, it is possible you will receive [...]
In the latest round of COVID-19 legislation, the American Rescue Plan Act of 2021 passed the Senate by a 50-49 vote on March 6, 2021. The bill had been subject to many changes in the Senate after passing in the House on February 27. The bill was signed into law by the President on [...]
In the last year, Congress passed new federal legislation authorizing three key payroll tax breaks for employers. In case you missed it, we have summarized most of those on this JMF blog, and then posted it to our COVID19 page. The following is a brief overview. Employee Retention Credit: Under the Coronavirus Aid, Relief, [...]
The Consolidated Appropriations Act (CAA) gives employers another shot at a valuable tax credit that was scheduled to go off the books at the end of 2020. It extends the Work Opportunity Tax Credit (WOTC), which had expired and been reinstated numerous times in the past, for a period of five years. In the past, [...]
The Consolidated Appropriations Act passed December 27, 2020 included an expansion of the 2020 Employee Retention Credit (ERC). The credit is now retroactive to the enactment of the CARES Act, March 21, 2020, and is available to employers who received PPP loan funding. Employers, including tax-exempt organizations, are eligible for the credit if they [...]
By: Kim Smith, CPA, Tax Shareholder Kim is a shareholder, a member of the JMF Tax Department and in charge of the JMF State and Local Tax (SALT) group. With over 20 years of experience, she assists clients with corporate, partnership, and individual income tax reporting as well as complex multi-state income and sales tax issues. The [...]