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Translations from Your Trusted Advisor.

Retirement Plan Contribution Limits for 2021

10/27/2020

On Monday, the IRS released Notice 2020-79 which provides cost of living adjustments for retirement plans for 2021.

401(k), 403(b), most 457 plans, and Thrift Savings Plan contribution limits have remained the same as 2020 at $19,500. The annual catch-up limitation for employees over age also remains unchanged from 2020, at $6,500.

COVID-19 Business Tax Relief Tool

10/23/2020

The Taxpayer Advocate has released a tool that can be used to help businesses determine whether they qualify for certain tax credits and benefits that relate to COVID-19.

Main Street Relief Fund 2.0

10/19/2020

Governor Sununu has authorized another $100 million of CARES Act Funds to continue providing support to New Hampshire small businesses suffering from COVID-19.

SBA Clarifies Loan Forgiveness Application Due Date

10/14/2020

The SBA has released additional guidance confirming the due date for Paycheck Protection Program (PPP) loan forgiveness applications. There has been much confusion over the due date of the forgiveness application as many PPP forgiveness application forms display an expiration date of 10/31/2020 in the upper-right hand corner of the form. See below image for one example.

Social Security Updates for 2021

10/13/2020

Today, the Social Security Administration issued a press release with updates for 2021 including updating their fact sheet.

The updates include:

PPP Loans of $50,000 or Less: Simplified Forgiveness

10/9/2020

The SBA has released a new interim final rule (IFR) providing exemptions for PPP loans of $50,000 or less.

PPP loans of $50,000 or less are now exempted from any reductions in forgiveness based on (1) reductions in full-time-equivalent (FTE) employees and (2) reductions in employee salary or wages.

SBA Clarifies the Deferral Period for PPP Loan Payments

10/8/2020

Wednesday, the SBA updated their FAQs on the Paycheck Protection Program (PPP) loans which now clarify the deferral period for PPP payments. Although some earlier loans specified a deferral period of only six months, newer guidance pushes the deferral out for ten months.

FAFSA Applications for 2021-2022 Open October First

10/1/2020

The FAFSA application opens October 1, 2020 for the 2021 through 2022 year. The FAFSA is required for students to be eligible for federal financial aid.

We received some great information from Raymond James on additional details related to how the FAFSA calculates financial need, how to submit the form, and if it should be filed when you don't think you'll qualify. To learn more check out their post here.

Contact us with any questions and remember to follow us on LinkedIn so you can stay up to date on all of our blog posts!

Now is the Time to Check Your Withholdings

9/25/2020

As we approach the last quarter of 2020, now is a good time to take a look at your withholdings and find out whether you are having enough taxes withheld from your paycheck. The IRS requires 100% of prior year tax (110% for adjusted gross income over $150,00) or 90% of current year tax to be withheld throughout the year. By adjusting your withholdings before the end of the year you can avoid underpayment penalties in April.

Payroll Tax Deferral

9/2/2020

On August 8th, President Trump issued an executive order on payroll tax deferrals for employees. The IRS has followed up that memo with Notice 2020-65. In short, employees making less than $4,000 bi-weekly can defer paying the 6.2% Social Security tax on their wages. This amount is not forgiven and will be collected from the employees’ wages from January 1 through April 30 of 2021.