GLN Tax & Payroll

The third round of stimulus payments are being disbursed starting this week. Visit the IRS link below for more information. Or visit https://www.irs.gov/coronavirus/get-my-payment to check the status of your stimulus payment. https://www.irs.gov//irs-begins-delivering-third-round-of-

Update for your 2020 taxes: If your earned income was higher in 2019 than in 2020, you can use the 2019 amount to figure your Earned Income Tax Credit for 2020. This temporary relief is provided through the Taxpayer Certainty and Disaster Tax Relief Act of 2020.

As many of you know the tax filing date this year has been pushed back to February 12th. If your appointment is before February 12th you do NOT need to cancel. We will take all of your information and get it entered in our system, then file it electronically on the 12th. https://www.irs.gov//2021-tax-filing-season-begins-feb-12-

Most lending institutions are beginning to take applications for Round 2 of the PPP starting Tuesday, January 19th. Here are some of the main points you need to know if you are getting ready to apply: The SBA will be accepting applications until either until March 31st, 2021, or until the funds have been exhausted. Whichever comes first. To be considered for this round of PPP you will need to have a 25% decline in gross receipts in any quarter of 2020 from the same quart...er in 2019. Ex. Q3 of 2020 vs Q3 of 2019. Restaurants will be eligible to receive 3.5x monthly payroll instead of the standard 2.5x monthly payroll. Must have 300 or fewer employees. Forgiveness requirements will be largely the same as the first round, but there have been some eligible expenses added such as: Covered operations expenditures, covered supplier costs, covered worker protection expenditures, etc. 501(c)(6) Not-for-Profits will now be eligible to receive a PPP loan. If you have any questions about applying for a PPP loan please contact Bryan at [email protected].

UPDATE FOR THOSE WHO FILED FOR UNEMPLOYMENT IN 2020 As tax season draws closer, we wanted to let everyone know that your 1099-G forms from unemployment WILL NOT be mailed to you. If you claimed unemployment this year you will need to go online to print out your form to have your taxes completed. Visit the link below to access your 1099-G. https://www.tax.ny.gov/pit/file/1099g.htm

We’re proud to announce that we have been nominated by the 2020 Best of the Twin Tiers awards for best accountant. Voting will be live from September 2nd, until September 16th. We would love if our clients could take a few minutes and vote for us at the link below. Thanks everyone for your support! https://the-leader.gannettcontests.com/2020-Best-o/gallery

Social Security Tax Deferral Update As some of you know the option to defer Social Security tax took effect yesterday. We have been receiving a lot of questions about this, and wanted to put out a few of the major points that everyone should be aware of. 1. Employees must make under $104,000.00 to be eligible.... 2. This is a deferral, not forgiveness. Unless there is a change in the future the deferred amount will have to be paid back starting January 1, 2021. Meaning double social security tax on paychecks for the first four months of next year. 3. Employers will be held liable for the deferred taxes. Normally it will be collected at a higher rate from employees pay to paid back. However, if an employee quits and the employer can no longer collect it from that employee the employer will still be responsible for repayment. 4. If deferred money isn’t paid back by April 30th 2021, employers will be subject to penalties and interest. If you have any additional questions please feel free to reach out by email at [email protected]

Beginning on September 30th all employees in New York State will begin to accrue protected sick leave. Accrued leave will not be available for employees to use until January 1, 2021. The amount of leave that employees will receive will depend on number of employees, and the employer’s net income: 4 or fewer employees and net income of $1 million or less: 40 hours, unpaid 4 or fewer employees and net income of more than $1 million: 40 hours, paid 599 employees: 40 hours..., paid 100+ employees: 56 hours, paid Employers who already offer sick leave to their employees that meet or exceed these requirements will not need to change their current plan. Any unused sick time will roll over at year’s end, however employers can still limit use to 40 hours (56 hours if employer has 100+ employees). Employers will not be required to pay out unused sick leave at termination. We will continue to post updates as more information becomes available.

Phase 3 reopening guidelines have been released. This will include Restaurants, with indoor seating at 50% capacity as well as some other restrictions that can be found at the link below. And also personal care which will cover businesses such as: spas, nail salons, cosmetologists, and tattoo shops. https://forward.ny.gov/phase-three-industries

The PPP Flexibility Act was passed earlier this week. There will be some changes to the forgiveness requirements for businesses who have participated in the PPP. A couple of the main differences are: 1. Businesses now have 24 weeks to spend the funds instead of 8 weeks 2. Borrowers are now permitted to use up to 40% of the funds on qualified non-payroll expenses instead of the previously stated 25%... For more details on the update please visit https://www.natlawreview.com//ppp-extension-increased-flex

Attention to those who have been receiving SSI, RRB, VA Benefits, etc. and have not had to file taxes in the past two years. If you have children that would make you eligible to receive an additional $500 as part of the government stimulus package you will need to visit https://www.irs.gov/coro/non-filers-enter-payment-info-here and register the correct payment information for each child by April 22nd at noon. If this is not completed you will not receive the additional funds until you have filed your taxes for the year 2020. If you do not have eligible children, or have filed taxes in the last two years no further action is required.

If you have questions about when you will receive your stimulus check. Or if you are eligible to receive a stimulus check, the best way to track this is by visiting https://www.irs.gov/coronavirus/get-my-payment.

If you have not received your tax returns by direct deposit in the past, but would like your stimulus check by direct deposit here is the link to update your banking information: https://www.irs.gov/coronavirus/economic-impact-payments

Payroll Protection Program Update More details for the Payroll Protection Program under the recently passed stimulus package have been released. Here are a few important points that you need to know: Funding will be available for Small Businesses this Friday... Sole proprietors and independent contractors will see at least one week delay Any employer with under 500 employees will be eligible to apply First payments will not be due for 6 months (for any amount that is not forgiven) Link to loan application: https://home.treasury.gov//Paycheck-Protection-Program-App For more information please visit https://www.sba.gov/fundi//paycheck-protection-program-ppp. We hope this helps, and if you have any additional questions feel free to reach out to us directly by email to [email protected]. Stay safe everyone!

New York State has officially followed the Federal government and extended their filing deadline to July 15th.

We have been receiving a lot of questions about unemployment benefits due to the shutdown of some local businesses. Below you will find information about the steps you will need to take if you are currently out of work. For more FAQ’s about the applying for unemployment benefits please visit https://labor.ny.gov/ui/coronavirus-faq.shtm.