SBS CPA Group September 29th Update

This email was sent to our clients on September 29th, 2020 and was posted to our website via our blog.

2020 has been a difficult year due to Covid-19 and we hope you and yours are as happy and healthy as possible!

SBS CPA Group is hiring.  If you or anyone you know is interested in the following positions please let us know.

Administrative Assistant.  This person answers the phone, deals with the public, e-files income tax returns, works up front, files, and much more.  This person must be friendly and detail oriented.  This person works Tuesday – Friday from 8:30 AM – 5 PM with a 30 minute unpaid lunch break during our slow season which runs from April 16th – December 31st each year.  This person works 40 hours a week the 1st two weeks of January (Monday – Friday), 45 hours a week the second two weeks of January (Monday – Friday), and from February 1st – April 15th this person works 50 hours a week which includes four hours every Saturday.  Our Administrative Assistant gets 19 days paid off per year which start accruing on day one.

Staff Accountant.  This person will have a four year degree in Accounting and recent or even future graduates are welcome to apply.  This person will mostly deal with personal tax returns, business tax returns, payroll, and bookkeeping.  Our Staff Accountants work an average of 32 hours a week during our slow season and work four days per week in our slow season.  Our Staff Accountants work an average of 64 hours a week from January 15th – April 15th.  Our Staff Accountants get 21 paid days off per year which start accruing on day one.

We offer the following benefits to all of our employees after a 90 day trial period:  401K with up to a 4% match, health insurance with the company paying 100% of the employee cost, paid time off, and life insurance.

SBS CPA Group is looking for a renter for our 1,864 square foot unit in Dawsons Creek.  If you are interested or if you know someone who is interested please let us know!

PPP Loan forgiveness.   A majority of our business clients applied for and received a PPP loan.  It is critical that if you received a PPP loan that you ensure your CPA knows exactly how much money your business was loaned and the exact day this money was deposited in your business bank account.  There are complicated forms that will need to be filled out along with a large amount of supporting documentation and submitted to your bank.  There is legislation in Congress that would greatly simplify this process for those businesses who received $150,000 or less.   Most banks feel that this legislation will pass; however, in an election year we cannot be sure if it will pass or when it will pass.

At this point we recommend all of our clients wait for the simplification legislation to pass.  We expect to revisit this at the end of October or early November.  Remember all PPP loan recipients have ten months from the date they received funds to apply for loan forgiveness.  We each have a list of our clients who received PPP loans and we will reach out to you when appropriate.

Covid-19 sick pay.  Congress passed Covid-19 sick pay legislation and the rules are complicated.  Too make a long story short; if you have an employee that meets the below rules and the employer has 500 or fewer employees you must pay them for time spent away from work due to Covid-19 and the Federal Government will ultimately bear the cost of this sick pay and the related payroll taxes and make the employer whole.

The employer must pay up to two weeks of sick pay at full pay at the employee’s regular rate of pay where the employee is unable to work because the employee is quarantined (pursuant to Federal, State, or local government order or advice of a health care provider) and/or experiencing Covid-19 symptoms and seeking a medical diagnosis.

If you need more details about Covid-19 mandated sick pay please contact your CPA directly.

Now is the time to contact your CPA for 2020 tax planning.  Tax planning for 2020 and beyond is much more complicated right now due to the upcoming Presidential and Congressional Elections.  According to the oddsmakers there is a 50% chance or better that the Democrats will win the November 2020 election.  We are not taking a partisan position in this email; however, the Democratic platform calls for higher taxes on the upper middle class and the wealthy.  We have looked at the Democratic proposals and we feel that if the Democrats win the November 2020 election income taxes would likely increase on at least a fourth of our clients; we feel this would affect those clients with higher incomes.

Almost all states and local Governmental units are experiencing large revenue shortfalls.  States and localities cannot print more money like the Federal Government can and we expect most state and local governments to raise taxes over the next couple of years and this has already started in several states.  Indiana has already spent its 900 million dollar surplus in the Indiana Unemployment Fund and Indiana employers will see their unemployment tax rates increase across the board over the next couple of years similar to what happened back in 2010.

The upcoming tax season is going to be very challenging for many reasons.  Covid-19 seems likely to affect the next filing season.  The Internal Revenue Service currently has over five million pieces of unopened mail due to Covid-19 and has issued press releases telling the public they are in some cases 1-2 years behind.   The IRS is dangerously behind and there already has been a lot of legislation that has affected the 2020 tax filing season and more seems likely after the election.  Many experts expect the Democrats to roll back part of the Trump tax cuts if they win election; especially those favoring those with high incomes and that could have a major effect on tax forms and tax rates.

Please make sure that you save all documentation relating to your economic stimulus payment, we will have to have this information in order to prepare your 2020 personal income taxes.

For the last couple of years our Partners have tried to convince many of our clients to take advantage of the historically low income tax rates currently in place and pay tax on income now rather than aggressively defer it into the future.  Please realize it may not make sense to defer income if you defer this income into a future year with higher tax rates. 2020 may be a good year to recognize income and pay taxes at the current historically low income tax rates.

The truth of the matter is 2020 has been a difficult year for everyone and we truly hope that our clients are healthy and happy.

Please contact us with questions and you can reach us as follows:

You can call us at 260-407-5000 or you can email us at:

Mike@SBSCPAGroup.com

Brent@SBSCPAGroup.com

Karena@SBSCPAGroup.com

Thanks for listening!

Mike Sylvester, CPA

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