IRS: Federal Government Funding

December 4, 2020By Smeriglio Associates LLCNews

With the 2021 tax filing season approaching, the IRS is asking Congress for consistent multi-year funding. In testimony before a House Ways and Means oversight committee, IRS Commissioner Chuck Rettig noted that the tax agency collected $3.56 trillion in taxes in fiscal year 2019, generating nearly 96% of the funding that supports the federal government. … Read More

Lessons of 2020: Change management

December 3, 2020By Smeriglio Associates LLCNews

The year 2020 has taught businesses many lessons. The sudden onset of the COVID-19 pandemic followed by drastic changes to the economy have forced companies to alter the size of their workforces, restructure work environments and revise sales models — just to name a few challenges. And what this has all meant for employees is … Read More

IRS: Vacation Buy Back Treatment

December 3, 2020By Smeriglio Associates LLCNews

How should employers treat “vacation buy back” for tax withholding purposes? Some companies are offering employees the option of “cashing in” accrued vacation time because many are working remotely due to COVID-19. For payroll purposes, employers should treat the payments as regular wages. Whether the vacation leave is taken or not, the wages are subject … Read More

Cutoffs: What counts in 2020 vs. 2021

November 30, 2020By Smeriglio Associates LLCNews

As year end approaches, it’s a good idea for calendar-year entities to review the guidelines for recognizing revenue and expenses. There are specific rules regarding accounting cutoffs under U.S. Generally Accepted Accounting Principles (GAAP). Strict observance of these rules is generally the safest game plan. The basics Companies that follow GAAP must use the accrual … Read More

IRS: PPP Safe Harbor for Deducting Expenses

November 30, 2020By Smeriglio Associates LLCNews

The IRS has provided a safe harbor for deducting expenses if a Paycheck Protection Program (PPP) loan isn’t forgiven. The safe harbor allows a taxpayer to claim a 2020 deduction for deductible eligible expenses if they received a PPP loan that: 1) the taxpayer expects to be forgiven after the 2020 tax year, and 2) … Read More

IRS: Tax Organization Tips for 2020 Filing

November 28, 2020By Smeriglio Associates LLCNews

Make filing your 2020 federal income tax return easier with some preparation. The IRS is reminding taxpayers to get ready for the 2021 filing season. Steps you can take now include, gathering your W-2, Wage and Tax Statements and Forms 1099 for Misc. Income, notices of unemployment compensation, refund interest, gig economy income and virtual … Read More

Health Savings Accounts for your small business

November 27, 2020By Smeriglio Associates LLCNews

Small business owners are well aware of the increasing cost of employee health care benefits. As a result, your business may be interested in providing some of these benefits through an employer-sponsored Health Savings Account (HSA). Or perhaps you already have an HSA. It’s a good time to review how these accounts work since the … Read More