Every tax season, federal regulations catch the eye of small business owners. One of the most confusing aspects of tax reform and regulations in 2018 is the Employee Retention Tax Credit (ERC). This tax credit is similar to the Employee withholding tax (EWT) deduction. Both the EWT deduction and the ERC are deductions that employers…
I have been struggling for quite some time to understand why some organizations spend millions of dollars each year providing their employees with some kind of incentivizing benefit such as health care, pension benefits, health insurance, etc. Many companies still use tax advantaged plans, such as 403b plans, 401(k) plans, profit sharing plans, flexible spending…
IRS is eager to explain new tax credits and deductions for purchase of commercial products and certain medical equipment as well as credits for education, prescription drugs and adult day care. In the press release, IRS refers to the medical device tax as the “Medicare Access and CHIP Reauthorization Act”. Earned Income Tax Credit (EITC):…
Businesses are required to file Form 941 of the Internal Revenue Service (IRS) in order to report employment taxes such as federal income tax withholding, Social Security tax, Medicare tax, and Additional Medicare tax. This form is considered to be one of the most important payroll-related tax returns. What exactly is the Form 941 for…
A large number of businesses located in states in the United States that have been impacted by hurricanes, including Texas, Florida, and Georgia, have already reached out to ADP for assistance in determining and claiming the employee retention credits to which they are entitled. It has been over a year since Hurricanes Irma and Maria…
The Employee Retention Credit is a refundable tax credit that may be applied toward certain employment taxes and is calculated as a percentage of the qualified wages that an eligible employer pays to employees after March 12, 2020, subject to a number of restrictions. The ERC was established by the Coronavirus Aid, Relief, and Economic…
