American Rescue Plan Updates Employer Paid Sick & Family Leave Tax Credits
Paid Sick & Family Leave Credits were enhanced under the American Rescue Plan (ARP), which was enacted in March. The credits reimburse small and mid-size employers (and certain governmental employers) for the cost of providing paid sick and family leave to their employees for reasons related to COVID-19, including vaccinations. The updates apply to leave taken from April 1 – September 30, 2021.
Do You Have Children? You May Start Receiving Monthly Child Tax Credit Payments in July
If you have a child age 17 or under, you may automatically begin receiving advance payments of the Child Tax Credit on July 15th. Roughly 39 million households — covering 88% of children in the United States — will begin receiving the payments as part of The American Rescue Plan Act, which was passed in March.
Need to Know: New Lodging Tax Begins on July 1
Beginning on July 1, 2021, owners of short-term rentals will have to start paying hotel taxes under House Bill 317, which was signed into law by Governor Kemp last month. The law requires that home rental companies, such as Airbnb and VRBO, collect Georgia’s $5-per-night lodging tax and local excise taxes, which can reach 8%. All hotels, motels, short-term rentals and most lodging facilities in Georgia will be required to pay the $5-a-night excise tax as of July 1. The costs will be passed onto renters in their bills.
Common Tax Deductions to Know for Your New Business
When you first start a business, you don’t know what you don’t know. This can be especially true when it comes to taxes. As a new business owner, you may not be aware of the many tax deductions available that can help take the sting out of starting up.
What to Do If You Get a Letter from the IRS
Get a letter from the IRS? Don’t panic! The IRS mails letters or notices for a variety of reasons, including if you have a balance due; you are due a larger or smaller refund; the IRS has a question about your tax return; the IRS needs to verify your identity or that of a dependent; the IRS is requesting additional information; or the IRS made changes to your tax return.
The Latest Tax Info You Need to Know
The American Rescue plan, which was signed by President Biden on March 11th, and other tax law changes affected finances and returns for both 2020 and 2021. Here are some of the details you need to know:
American Rescue Plan Targets Help to Restaurants
The $1.9 trillion coronavirus relief bill signed by President Biden on March 11, 2021, allocates help to struggling small businesses — especially restaurants — through grants, additional aid, and an expansion of existing credits such as the Employee Retention Tax Credit.
American Rescue Plan Features Several Tax Benefits
The new American Rescue Plan Act law signed by President Biden last week includes some items — including unemployment income and healthcare premium assistance — that may affect some 2020 tax returns.
PPP Loans Temporarily Expanded for Even Smaller Businesses
If you’re a sole proprietor, independent contractor or owner of a very small business, now’s your time to apply for a Paycheck Protection Program (PPP) loan. Thanks to a temporary rule change by the Biden Administration, the SBA will ONLY accept applications for PPP loans from firms with fewer than 20 employees during a 2-week priority window: February 24 through March 10, 2021.