IRS: Student CARES Act Grants

January 23, 2021By Smeriglio Associates LLCNews

Are you a student, or do you know a student, who has received a higher education grant under the CARES Act? The IRS recently posted FAQs on its website about information-reporting requirements for these grants. The 2020 CARES Act allows higher education institutions to use additional supplemental educational opportunity grant funds (received through the Higher … Read More

Blockchain beckons businesses … still

January 21, 2021By Smeriglio Associates LLCNews

The term and concept known as “blockchain” is hardly new. This technology surfaced more than a decade ago. Bitcoin, the relatively well-known form of cryptocurrency, has gotten much more attention than blockchain itself, which is the platform on which Bitcoin is exchanged. One might be tempted to think that, having spent so many years in … Read More

IRS: Employee Retention Credit Extended

January 21, 2021By Smeriglio Associates LLCNews

The Employee Retention Credit has been extended. To encourage businesses to maintain their workforces, the CARES Act created the Employee Retention Credit, a refundable credit against payroll tax for employers meeting certain requirements. The credit equaled 50% of up to $10,000 in compensation (including health care benefits) paid to an eligible employee from March 13, … Read More

Assessing and mitigating key person risks

January 20, 2021By Smeriglio Associates LLCNews

Auditing standards require a year-end risk assessment. One potential source of risk may be a small business’s reliance on the owner and other critical members of its management team. If a so-called “key person” unexpectedly becomes incapacitated or dies, it could disrupt day-to-day operations, alarm customers, lenders and suppliers, and drain working capital reserves. Common … Read More

IRS: Families First Act Extension March 2021

January 20, 2021By Smeriglio Associates LLCNews

A valuable employer tax credit is extended, but modified, for 2021. Under the Families First Act, certain employers were obligated to provide paid sick and family leave to employees affected by COVID-19 from April through December 2020. Employers who provided such leave then qualified for refundable employment tax credits to help mitigate the cost. The … Read More

New law provides option to delay implementing the updated CECL standard

January 19, 2021By Smeriglio Associates LLCNews

The Consolidated Appropriations Act (CAA), signed into law on December 27, 2020, includes a variety of economic relief measures. One such measure allows certain banks and credit unions to temporarily postpone implementation of the controversial current expected credit loss (CECL) standard. Here are the details. Updated accounting rules The Financial Accounting Standards Board (FASB) issued Accounting … Read More

IRS: Forms 1099-MISC

January 19, 2021By Smeriglio Associates LLCNews

Businesses that generally report payments to workers on Forms 1099-MISC will need to adapt. Beginning with the 2020 tax year, payments of at least $600 made for services performed by a non-employee must be reported on the new Form 1099-NEC (Nonemployee Compensation). Previously this information was reported on Form 1099-Misc, box 7. In addition, if … Read More