On March 1, 2021, the IRS released Notice 2021-20 to provide comprehensive guidance on the Employee Retention Credit (ERC) and formalize the IRS’s FAQs, thereby allowing taxpayers to rely on the guidance for penalty prevention purposes. The notice explains the tax treatment of the ERC and, significantly, provides long-awaited instructions on how Paycheck Protection Program (PPP) loan borrowers may qualify for and claim the ERC for wages paid after March 12, 2020 and before January 1, 2021. Therefore, borrowers who can potentially claim the credit are now better positioned to proceed with applying for PPP loan forgiveness.
Restaurants are starting to rebound from the effects of COVID-19 and recent legislation introduced by Congress allows restaurants to use the Employee Retention Tax Credit. This credit can generate cashflow of up to $19,000 per employee for 2020 and the first half of 2021, providing needed liquidity and help for the struggling industry.
When the COVID-19 pandemic hit in the spring of 2020, it took a large toll on the entertainment industry, causing production to come to a temporary halt in March. To dive into the impact the coronavirus has had on film and television in Georgia and how it will shape the industry going into the new year, the Atlanta Jewish Film Festival (AJFF)’s In Conversation podcast interviewed Peter Stathopoulos, Partner at Bennett Thrasher and leader of the firm’s Entertainment practice.
On January 15, 2021, the state of Texas published new regulations that alter its means of sourcing service revenue for the state’s margin tax. As detailed below, these changes affect sourcing various types of services revenue, including internet hosting, advertising, digital property, capital assets and investments, single-member LLC interests and financial derivatives.
Despite undergoing significant challenges and changes due to the coronavirus pandemic, the outlook for the manufacturing industry looks hopeful at the start of 2021. In the recent Q4 Outlook survey conducted by the National Association of Manufacturers (NAM), a majority of manufacturers said they were positive about their company’s outlook.
On February 22, 2021, the Biden administration announced several reforms to the Paycheck Protection Program (PPP) to direct more funding towards the smallest and neediest businesses and promote equitable access to relief. The five major changes announced may make a significant difference if you are a small business owner working on your own or with less than 20 employees, have student debt or are a Green Card holder.
Cybercrime is a fast-growing threat to U.S. companies, with data breaches, phishing scams, ransomware and malware all now part of the corporate security vernacular. The COVID-19 pandemic has only made matters worse, causing more security threats now that more people are working from home on less secure networks. Security is not just an IT concern; it is an organization-wide risk with far reaching implications that also affects the operational and financial aspects of companies as a whole.
DiAndria Green, a Senior Manager in Bennett Thrasher’s State & Local Tax (SALT) practice, recently sat down with Tax Notes editor Benjamin Willis, writer for the column Willis Weighs In, to talk about her career path and the current state of the tax industry.
The Consolidated Appropriations Act of 2021 (CAA), signed into law on December 27, 2020, includes a temporary rule providing COVID-related relief from certain partial plan terminations for employee benefit plans. Under this provision, a plan is not treated as having a partial plan termination during any plan year which includes the period beginning on March 13, 2020, and ending on March 31, 2021, if the number of active participants covered by the plan on March 31, 2021, is at least 80 percent of the number of active participants covered by the plan on March 13, 2020.
In 2010, the Affordable Care Act (ACA) was passed and signed into law, requiring employers with 50 or more full-time employees to offer minimum essential coverage to at least 95 percent of their full-time employees. If coverage isn’t offered or if the coverage offered isn’t affordable, the employer can face an IRS assessment known as an Employer Shared Responsibility Payment (ESRP).
Navigating business complexities can be overwhelming, especially when its opportunities and challenges are outside of a business owner’s area of expertise. To effectively manage these situations, many management teams seek the support of outside counsel through an advisory board. By forming and consulting with an advisory board, a company benefits from the knowledge and experience of its members without being bound to their advice.
While the first round of the Paycheck Protection Program (PPP) provided a much-needed economic boost for businesses hit hard by the COVID-19 pandemic, many companies that received a loan have continued to struggle to stay afloat. At last, however, some of the hardest-hit industries now have a chance at survival due to the many improvements Congress built into the second round of PPP loans, which are now underway.