My Blog

Blog

Congratulations, You got your PPP Loan, What Next?

Posted on May 6, 2020 at 1:00 PM Comments comments (3)

 
      
  Congratulations, you filed all the Paperwork for your PPP Loan and you have received your Grant and Loan. Now is the time to start planning on how you are going to ensure you use the Funds correctly. During this Pandemic, the SBA has made efforts to make funding accessible to Small Businesses and it is important to use the Funds appropriately. 

    The PPP Loan is designed to provide a direct incentive for Small Businesses to keep their workers on Payroll. SBA will forgive Loans, if all employees are kept on the Payroll for eight weeks, starting from when the Loan is received and the Money is used for Payroll, Rent, Mortgage Interest Payments or Utilities. It is important to note that not more than 25% of the forgiven Amount maybe for Non-Payroll Costs.
 
  Now, that you have your Loan and have identified the time period, it's time to calculate the monthly payroll cost, to ensure your Loan Forgiveness. The Items below are the Payroll Costs to include, as well as the Non- Payroll Costs. 
 
        Payroll Costs: 
 1)   Salary, Wages, Commissions, Tips and Bonuses.
 2)  Owner's Draw Payments for Sole Proprietors.
 3)  Severance Pay
 4)  Paid Leave Payments (No FFCRA Paid Leave)
 5)  Employee Payments for State and Local Taxes.
 6)  Employee Payments for Federal Income Tax and FICA.
 7)  Employee Contributions to Retirement and Group Health Plans ( Health Insurance & Dental Coverage).
 8)  Payments of Interest on Mortgage Obligations. 
 
  Non-Payroll Costs: 
 1)  Contractor Pay
 2) Payroll Reimbursement.
 3) Owner's Draw Payments (Except for Sole Proprietors).
 4) Workers' Compensation Fees.
 5) Fringe Benefits. (Commuter Benefits, HSAs).
 6) Ancillary Benefits (Short-Term Disability, Group Life Insurance).
 
  Important Notes:
 
  • The SBA recently clarified that the 8 Weeks Period begins on the date, the borrower receives the disbursement of the Loan, and regardless of whether your Business has resumed operations.
  • No More than 25% of the Forgivable Amount of a PPP Loan can be attributable to Non-Payroll Costs.
 
   Actions to take immediately:
 
  • Open up a Separate Bank Account and Deposit the Loan Amount in the Bank Account. It would make it easier to track the use of the funds precisely. 
  • Order Check Books for this Account and Ensure the Check Payment is made from this Account.
  • Hire Back Employees and Restore Headcount and Wages to Prior Levels.
  • Maintain a Paper Folder or Electronic Folder for all PPP Expenses and Cancelled Checks. Remember you have 8 Weeks of Funding to track these costs.  Not 2 Months but 8 Weeks, from when you got the Funding. 
  • Ensure to pay your Rent on time. Get your Lease Agreement and Have it ready to produce, when it is requested.
  • Ensure to pay your Utility Bills on time and save all Bill Payments.
  • Make Sure to Pay ALL Interest on your Loans when Due. Although, Principal Payments are required, you are required to keep track of the Interest Payments, either with Statements or an Amortization Schedule. 
  • Keep a Record of the Exact Amount of Health Benefits and Pension Contributions due for the 8 Weeks. Ensure to find them, before the end of the 8 Weeks.
  • Get a Bookkeeper, CPA and Accountant NOW. 
 
         The PPP and EIDL Loan Program is one of the Greatest Investments, you have ever made as a Small Business. The Secret is knowing how to play by the Rules and is essential in using it to your Best Advantage.
       
     You may be proud of the fact, that you do your own Tax Filings, Payroll and Bookkeeping, but the PPP Loan and EIDL Loan is not an area, where you want to risk making a wrong decision. The Guidance for the PPP seems to be changing daily. Be Aware that Little Mistakes can cost you Big.  Whatever you do, be sure to do it under the Guidance of a Financial Advisor/Bookkeeper to help you maximize your Benefit from the adherence to the PPP Loan Terms.
 
     Feel Free to Reach Out to us and Let Us know, how we can assist you. We are available to help you with your Bookkeeping, Accounting and Payroll Needs. Call 202-422-4586 for More Information. 
 
 
 

     

ALL YOU NEED TO KNOW ABOUT THE STIMULUS CHECKS.

Posted on April 3, 2020 at 4:04 PM Comments comments (3)


                   

stimuluschecks

   We are aware that these are unprecedented Times and there are a lot of challenges during these Period. We are encouraging you to rise above this Situation and remain confident, that you will come out Stronger, Bigger and Better off. 
 
   President Trump just signed off a $2 Trillion Relief Bill, which will come in form of Stimulus Checks to offer Assistance to Millions of American Household, affected by the Corona Virus Pandemic. We are aware that most of us have Questions  and we want to enlighten you more about, what in this for us.

   The Following are the Basic Things to know about the Stimulus Checks:

  •  Your Eligibility for the Stimulus Check is based on your 2019 Tax Returns as well as your Adjusted Gross Income. If you are yet to file your 2019 Taxes, the IRS will use the 2018 Taxes to determine your Eligibility. The IRS will only use your 2018 Tax Returns, if you have not filed your 2019 Tax Returns. 


  • You must have a Valid Social Security Number to be eligible for this Check. People with  ITIN Numbers and Tax ID Numbers will not be issued Checks.     


  • The Check Values are based on 3 Plans Income Qualification: 

  1. SINGLE TAX FILERS - The Adjusted Gross Income Qualification is $75,000 or Less. This Category will get a $1,200 Stimulus Check.     
  2. HEAD OF HOUSEHOLD FILERS - The Adjusted Gross Income Qualification is $112,500 or Less. This Category will get a $1,200 Stimulus Check.
  3. MARRIED FILING JOINTLY - The Adjusted Gross Income Qualification is $150,000 or Less. This Category will get a $2,400 Stimulus Check.        

       It is important to note that if the Income Exceeds the threshold, the Amount will be reduced on a Sliding Scale. 


  • For Each Dependent/Child, that is Under the Age of 17 Years and Below, you will get an Additional $500 Check, for each Child. Please Note, that this is as long, as the Child/Dependent was stated in the Tax Returns, at the time of Filing. 


  • If a Parent claims the Dependent/Child as a Dependent and this Child/Dependent files their own Taxes, the Parent will not get the Additional $500 Stimulus Check.       



  • The IRS will send the Payment to the Bank Account Information, that you have on File. 



  • If you did not indicate a Bank Account  nor used a Direct Deposit Method for your Tax Refunds, the IRS will mail the Check to the Address on File. 



  • In the Event, that you have moved from the Address on File, you need to File a Form 8822 with the IRS. This is a Change of Address Form to update your Address with the IRS.



  • The IRS will not withhold your Stimulus Check, if you are owing Taxes, the only clause is, if you are backed up on your Child Support Payment. You may have to call the Agency, in charge to make Payments and settlement, so that you are assured of getting your Full Stimulus Check Payment. 

  • The Earlier you file your Taxes, the Earlier you are assured of getting your Stimulus Check.      



        We are available to help you with all the Questions, that you may have , regarding the Stimulus Check as well as any other Question on the Stimulus Package. We are also available to assist you virtually. Call us on 202-422-4586 to set up an Appointment.

      It is always our Pleasure to Help you. 
  

W-2 AND FORM 1099 FILING DEADLINE IS JANUARY 31ST 2019.

Posted on January 9, 2019 at 5:47 PM Comments comments (2)

W-2 AND FORM 1099 FILING DEADLINE IS JANUARY 31ST 2019; Employers & Business Owners Take Note. 

Happy New Year. This is to remind All Business Owners/ Employers that the Deadline for filing W-2 and Form 1099 Tax Report with the IRS is January 31st, 2019. This means that you need to ensure that your Employees and 1099 Contractors receive and review their W-2 and 1099s before January 31st, 2019.

It is important to remember that this Act is from The Protecting Americans from Tax Hikes (PATH) Act of 2015 that was passed by Congress in 2015 and became effective since 2016. We had published a Detailed Article on this - 
https://www.linkedin.com/…/new-w-2-deadline-2017-business-…/

By this New Act, Employers and Small Businesses have January 31st Filing Deadline to submit Forms W-2 and W-3 to the Social Security Administration (Whether you file using Paper Forms or electronically). This New Date also applies to certain Forms 1099-MISC reporting Non-Employee Compensation such as Payments to Independent Contractors. As a Result of this, the filing deadline for filing W-2s and 1099 forms (including Form 1099-MISC) is Every January 31st. 

Note to Employers: It is important that Employers become adequately prepared to complete the Year-End Tasks. This means: 
• Ensuring that All Independent Contractors fill out a Correct and Updated Form W-9.
• Verifying Accuracy of Employee Information.
• Reporting/Submitting Any Year-End Adjustments as soon as possible.
• Reviewing Year-End Totals for any Discrepancies. There are penalties for Failure to file these Returns or Furnish Correct Statements and these Penalties are not palatable. 

The Penalty amounts are reflected below:
• $50/Return –   If you file after 30 Days of the Due Date.
• $100/Return – If you file more than 30 days after the Due Date.
• $260/Return – If you do not file corrections or Do not file Required Forms. 

 At Rosyan Bookkeeping Services, We are committed to helping you with your W-2s, W-3s and 1099 Filings, as well as furnishing you with helpful information regarding your Tax Filings.

Feel Free to Call and Let us know how we can help you.

TAX DAY IS APRIL 17 2018.

Posted on April 16, 2018 at 9:27 PM Comments comments (2)
The deadline for filing your taxes is fast approaching — this year, The deadline is April 17, 2018.

We all know, that Life can be busy!!! Maybe your taxes are particularly complicated this year, or maybe you just don’t have the time to sit down and sift through the paperwork.

So, what happens if you don’t file your tax return on time?
If you’re getting a refund on your taxes this year, you don’t need to panic — you have until April 17, 2021 to claim your refund (or until October 17, 2021 if you filed an extension by the April 17 deadline). It’s best to file as soon as possible, however, because if you don’t file within that 3-year period, you’ll lose the refund.

If you owe taxes, things get complicated.
First, you’ll be charged a failure-to-file penalty. That penalty is 5 percent of your unpaid tax bill for every month after the April deadline that you fail to pay. The amount can grow to a maximum of 25 percent of your total unpaid bill.
In addition, you will be charged interest on whatever amount you did not pay. The interest rate is the federal short-term rate plus 3 percent with interest compounded daily. That can add up very quickly.

How to File for an Extension on your Taxes.
If you think you might be unable to file your tax return by the April 17 deadline, the best way to avoid fees and penalties is to file for an automatic six-month extension with the IRS using Form 4868. It’s free and pretty easy.
But if you owe taxes, you’ll still need to pay them by the April 17 deadline or penalties, fees and interest will start to accrue. 
Form 4868 does not grant the taxpayer an extension of time to pay their tax.
If you owe the IRS money and are having trouble coming up with the money, you have a few options. You can file for an extension of time to pay your tax bill using Form 1127: Application for Extension of Time for Payment of Tax Due to Undue Hardship, but be aware that the laws are very strict about granting such extensions.

* The IRS must receive Form 1127 on or before the date that the tax is due.

* The taxpayer must include a complete statement of all their assets and liabilities at the end of the previous month, as well as an itemized list of money they received and spent the previous three months prior to submitting the extension request.

* The taxpayer must show that the payment of tax would result in “undue hardship.” That means more than inconvenience.

*The taxpayer must show that paying by the due date would result in a serious loss of money and that they don’t have the funds, nor can they raise them through borrowing.

When granted, these extensions usually last 6 months. For more information about extensions to pay tax, visit the IRS website at www.irs.gov.

(You can read more about payment plans and other options for what to do if you can’t pay your tax bill here.)
Ultimately, it is the best and safest idea to file your return by the April 17 deadline or file for an extension. That may be a hassle now, but it could save you a significant amount of financial harm in the future. If you need assistance, please call us as soon as possible.
 

IRS Begins Accepting Tax Returns.

Posted on January 29, 2018 at 7:54 PM Comments comments (7)

  

IRS Begins Accepting Tax Returns Today - Monday, January 29th 2018.

IRS begins accepting Tax Returns Today, Monday, January 29th 2018.
 
Highlights to Note:

  • Even Though the New US Tax Law is in effect, Changes do not apply to 2017 Tax Returns.
  • Tax Payers can start submitting their Returns to the IRS as From Today.
  • You may be able to file for Free; The Sooner, you start Filing, the Better, as this is a precaution to Tax Fraud.
  • The Deadline for this Year's Tax Filing Returns is Tuesday, April 17th 2018.
  • The Fastest Way to get your Tax Refund is by filing electronically and selecting Direct Deposit as the Method for receiving your Refund.


NEW TAX LAWS:

  •  The New US Tax Code, which includes the New Tax Brackets and modified Tax Deductions went into effect on January 1st 2018.
  • This means that even though, it doesn't affect the 2017 Tax Returns, Employees will start seeing a difference in their Paychecks by February.
  • Let the Tax Season Begin. 


   Need a Hand with your Tax Returns? Need Help with Organizing your Financial Reports? Need Help with your Accounting Software?We are here to help you. Contact us for more Information. 

W-2 and Form 1099 Form Tax Report Deadline for 2018.

Posted on December 18, 2017 at 7:15 PM Comments comments (5)


W-2 Form; 1099 Form Filing.

As the Year is coming to an end and Tax Season is drawing closer, it is important to remember The Protecting Americans from Tax Hikes (PATH) Act of 2015 that was passed by Congress in 2015, which became effective last year. We had published a Detailed Article - https://www.linkedin.com/pulse/new-w-2-deadline-2017-business-owners-employers-take-note/

With this New Act, Employers and Small Businesses have January 31 Filing Deadline to submit Forms W-2 and W-3 to the Social Security Administration (Whether you file using Paper Forms or electronically). This New Date also applies to certain Forms 1099-MISC reporting Non-Employee Compensation such as Payments to Independent Contractors.

As a Result of this, the filing deadline for 2017 W-2s and 1099 forms (including Form 1099-MISC) is January 31, 2018. The deadline for providing W-2 forms to employees and 1099-MISC forms to Independent Contractors for 2017 has not changed. This deadline is still January 31, 2018. 

Note to Employers: It is important that Employers become adequately prepared to complete the Year-End Tasks. This means:

  • Ensuring that All Independent Contractors fill out a Correct and Updated Form W-9.
  • Verifying Accuracy of Employee Information.
  • Reporting/Submitting Any Year-End Adjustments as soon as possible.
  • Reviewing Year-End Totals for any Discrepancies.

Please remember, that Extension of Time to file these Forms is no longer automatic. You can only request for One 30- Day Extension and this extension is NOT AUTOMATIC. You will have to submit a complete application on Form 8809, Application for Extension of Time to File Information Returns. This Form should be completed as soon as you notice that as Extension is necessary, but no later than JANUARY 31.

This Extension does not affect extensions of Time to furnish Forms W-2 and Forms 1099 to your Employees and Independent Contractors.
There are penalties for Failure to file these Returns or Furnish Correct Statements and these Penalties are not palatable. 
 
The Penalty amounts shown below apply for filings due after December 31, 2017:

  •  $50/Return – If you file within 30 Days of the Due Date.
  •  $100/Return – If you file more than 30 days after the Due Date but by  August 1.
  •  $260/Return – If you file after August 1, do not file corrections or do not file Required Forms.

 
The IRS urges Tax Payers to still plan to file their Returns as they normally would do, but prepare to exercise some patience, as we have noticed that these changes have brought some delays in getting Tax Refunds. The Refund Delay is an added way to help the IRS combat Tax Fraud by beefing up its effort to authenticate Tax Payer Filings.

 At Rosyan Bookkeeping Services, We are committed to helping you with your W-2s, W-3s and 1099 Filings, as well as furnishing you with helpful information regarding your Tax Filings. Let us know how we can help you.

 The IRS issued technical guidance detailing this information in https://www.irs.gov/pub/irs-pdf/iw2w3.pdf

IRS Increases 401K Contribution Limits by $500 from January 1st 2018.

Posted on November 16, 2017 at 2:40 PM Comments comments (2)
  IRS Increases 401K Contribution limits by $500 from January 1st 2018   What this means for you. 
   The IRS had announced sometime in October, that effective from January 1 2018, the contribution limit for Employees who participate in 401(k), 403(b), most 457 plans and the Federal Government’s Thrift Savings Plan will be increased from $18,000 to $18,500.

  This is surely a Big Deal. As we all know, this extra $500 can help us more than we may think and it could also mean up to $70,000 more in your retirement account, assuming you decide a retirement age of 67 for yourself and at a 6 percent annual rate of return.  

 This is also important to know, as we have only few weeks to the end of the Year and most of us have less than 3 Payroll Cycles to the end of 2017. We need to ensure that we are working towards reaching the limit of $18,000 for this Year and if you are over 50, try to ensure that your Payroll Company implements your catch-up contribution limit of $6,000. It’s been discovered that most time, they don’t implement it, unless you inform them.

  If you have not been contributing the maximum amount to your 401(k), this IRS Announcement is a useful reminder to push your contribution rate higher.  Even if you’re not saving that much, increasing your savings rate by a percentage point or two every year, and anytime you get a pay raise will make a Big Difference to you in Retirement.

  In addition to this announcement, the income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Accounts (IRAs), to contribute to Roth IRAs and to claim the saver’s credit is also increased for 2018.

 Taxpayers can deduct contributions to a traditional IRA, if they meet certain conditions. If during the year either the taxpayer or their spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. If neither the taxpayer nor their spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.

           Here are the phase-out ranges for 2018:

  • For single taxpayers covered by a workplace retirement plan, the phase-out range is $63,000 to $73,000, up from $62,000 to $72,000.
  • For married couples filing jointly, where the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is $101,000 to $121,000, up from $99,000 to $119,000.
  • For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $189,000 and $199,000, up from $186,000 and $196,000.
  • For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
 
           Highlights of Limitations that Remain Unchanged for 2018:

  • The limit on annual contributions to an IRA remains unchanged at $5,500. The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost- of – living adjustment and remains $1,000.
  •  The catch-up contribution limit for employees aged 50 and over who participate in 401K, 403(b), most 457 plans and the federal government’s Thrift Savings Plan remains unchanged at $6,000.

 

Please Note that If you don’t have a 401(k), there are other ways to put your money to work. Consider alternate retirement savings accounts, such as Roth IRA , Traditional IRA and/or Health Savings Account.
 
The IRS issued technical guidance detailing these items in Notice 2017-64