Many small to mid-sized businesses are eligible under the existing employee retention credit (ERC) for a 70% tax credit for wages paid to employees through the end of 2021. However, the infrastructure bill – as passed by the Senate – would end the ERC for wages paid after Sept. 30, one quarter earlier than the
The Coronavirus Disease 2019 (COVID-19) stimulus package signed into law by President Trump on Dec. 27 contains significant enhancements to the employee retention tax credit enacted under the CARES Act. The credit initially provided a 50% tax credit, which is refundable and easily monetized, for companies that continue paying their employees, even though the business
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which was signed into law on March 27, 2020, contains a tax credit to encourage companies to continue paying employees if the business has been closed, or there has been a significant decline in sales due to Coronavirus Disease 2019 (COVID-19). This tax credit is
A provision in the Tax Cuts and Jobs Tax Act will increase the “after-tax cost” for companies to settle “sexual harassment” or “sexual abuse” claims if they wish to maintain a “nondisclosure agreement” of the details. The law will disallow a business deduction for the amounts paid to settle such claims (including attorneys’ fees) if
A bill that would simplify state income tax compliance for employers when they send employees on temporary assignment to another state passed the House on Sept. 21. Many state government interests oppose the bill, so its future in the Senate is uncertain.
Employers face a major state tax compliance headache when they send an employee
The IRS has recently made it easier for businesses to participate in its worker classification voluntary compliance program, which allows a company that has been misclassifying workers as independent contractors to come forward voluntarily and reclassify the workers as employees. Under this program, employers pay only a small fraction of the potential payroll tax liability.
The Second Circuit recently ruled that the fraudulent acts of an employer’s accountant in filing payroll tax returns resulted in an open-ended statute of limitations, which allowed the IRS to go back beyond the three year statute of limitations to assess back taxes against the employer (City Wide Transit v Commissioner). This should