Tax Credits for Paid Leave Under the American Rescue Plan Act of 2021 for Leave After September 30, 2021

The COVID leave tax credits under the American Rescue Plan Act of 2021 (ARP) expired on 9/30/21.  These credits are based on the date of the paycheck, not the days missed. For any paycheck after 10/1/21, any employee taking COVID leave would need to utilize vacation/sick pay or the time off will result in unpaid leave.

As an employer, you may decide to offer voluntary leave at company cost and without the tax credit benefits. If employers offer such leave, they must do so in a consistent manner and for all employees.

How to get the most out of deductible meals

In this month’s video, I explained what types of business meals are deductible.  Since meals can be frequent and for small dollar amounts, I get more questions about tracking these receipts than any other expense.  In the case of travel meals, an IRS rule allows you to throw those receipts all away.  Instead of tracking and deducting each specific expense, you can deduct a per diem rate for your travel meals. Continue reading

199(A) Case Study #3 – Side Gig Effect

[This post is part of a multi-part series on the new 199(A) deduction.  Be sure and check out our blog during the second week of each month to see the next case study. If you are looking for the basics of what this deduction is, please check out this post.]

 Today’s case study is going to look at how the 199(A) deduction varies depending on the type of business being operated. Continue reading

How to Calculate Proper Paycheck Withholding

In this month’s video, I explained a couple of the goals when we complete a tax projection for clients.  For some taxpayers, a tax projection can have many moving parts making the assistance of a tax advisor essential.  For others, this process can be completed without outside help.  The main category of people that this would apply for is those with W-2 jobs.  To help those folks out, here is a step-by-step guide to calculating whether you have the proper paycheck withholding.  This is a good basic plan for anyone and can be tweaked for more complicated circumstances. Continue reading