Article Archives: 2021

Posted by: Shareen Corlett

As the COVID-19 pandemic nears its end, businesses are reporting an increased demand for flexibility from their employees, including a desire to travel or to move closer to friends and family. With more out-of-state employees, organizations will need to learn how to navigate the additional payroll challenges of having a remote workforce.

Third-Party Payroll Providers

A critical recommendation for any organization facing out of state payroll is to use a third-party payroll provider. The importance of this grows with every new state added to its payroll. Leveraging an already existing Human Resources Information System (HRIS) that provides payroll services may be the best course to take,

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This article has been updated to reflect the latest guidance as of 5/26/2021. It was originally published on 6/1/2020. 

On December 2, 2020, the IRS published final regulations on the unrelated business taxable income (UBTI) siloing rules required under the Tax Act of 2017 and section 512(a)(6) of the Internal Revenue Code. Exempt organizations with multiple unrelated trades or businesses have been waiting for the final guidance as it helps define the extent to which organizations will need to silo UBTI activities.

While the guidance leaves several unanswered questions, it does give organizations a road map of how to define and bucket their various trade or business activities.

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Posted by: Joe Haberzetle

Senate Bill 5096, “Concerning an excise tax on gains from the sale or exchange of certain capital assets,” was passed by the Washington Legislature on April 25, 2021 and signed into law by Governor Inslee on May 4, 2021. The law generally imposes a 7% tax on net long-term capital gains in excess of $250,000 recognized during each calendar year. Net long-term capital gain is defined by reference to U.S. federal income tax law. The tax is imposed on capital gains recognized on or after January 1, 2022. The first returns will be due in 2023 on capital gains recognized during calendar year 2022.

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Posted by: Sarah Huang

Back in March 2020, Congress passed the Families First Coronavirus Response Act (FFCRA) which required certain employers to offer expanded sick and family leave benefits to their employees and receive a payroll tax credit as a result. While the FFCRA leave mandate officially ended on December 31, 2020, a new version of the payroll tax credit is now available for 2021 Q2 and Q3.

The American Rescue Plan Act of 2021 (ARPA), signed on March 11, 2021, extends and enhances the expanded sick and family leave benefits from FFCRA. Besides making the payroll tax credit available through September 30,

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Posted by: Troy Rector

Federal Awards – Strings Attached

The historic amount of federal assistance being granted in response to the COVID-19 pandemic means that many not-for-profit organizations are either receiving federal award assistance for the first time or are significantly expanding their existing portfolio of federal awards. Whether being received directly from federal awarding agencies or being received as a subrecipient from a pass-through agency, federally funded awards come with strings attached, unlike any other non-federal grant an organization will likely receive.

When applying for a federally funded award or reviewing an award agreement, understanding the requirements your organization will be held to is key to ensuring you stay on the “good side” of the federal award.

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Posted by: Julie Eisenhauer

On March 11, 2021, President Biden signed into law the American Rescue Plan Act (the Act), to speed up the U.S. recovery from the economic and health impacts of the COVID-19 pandemic. Included in the Act is a Restaurant Revitalization Fund (RRF) with appropriations of $28.6 billion in grants to support the restaurant industry.

Application

The RRF begins accepting applications from eligible entities on Monday, May 3, 2021 at 9:00 AM (PST). Applications will be accepted through a U.S. Small Business Administration (SBA) dedicated portal and certain Point of Sale (POS) vendor partners. We encourage eligible applicants to prepare gross receipts documentation in advance to be ready when the application goes live.

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Posted by: Shelley Oswald

The Small Business Association (SBA) has announced they will soon begin accepting applications for the Restaurant Revitalization Fund.

During the opening 21 days of the program, the SBA will first review and process applications from those deemed “priority group” applicants. Businesses that do not qualify as a priority group applicant may still apply; however, such applications will not be processed until after the 21-day priority group period.

Those who apply for funding must self-certify that they qualify as a priority applicant, a list that includes small business organizations owned and controlled by women, veterans, or socially and economically disadvantaged small business organizations.

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Posted by: Sarah Huang

The rules and guidance for the employee retention credit (ERC) continue to change as we go. The American Rescue Plan Act of 2021, signed on March 11, 2021, now allows an extension of the ERC through the end of 2021. As organizations continue on the path of recovery from the pandemic, this credit can yield sizeable cash flow to those who qualify.

In addition to the extension of the credit, the IRS released official guidance on the ERC for 2020 and 2021 (Notice 2021-20 and Notice 2021-23). While much of the additional guidance simply repeats the Frequently Asked Questions posted to the IRS website last year,

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Think Before You SPAC

Merging with a special purpose acquisition company (SPAC) is a quick, easy, and low risk way to turn your great work as a company into untold riches. But unfortunately, before we go on, we must focus your attention on the date of our article – April Fools!!

Now, some elements of the opening sentence are true. Merging with a SPAC is a­ way to turn your hard work as a company into … something different than what it is today. There is no doubt SPACs are a tool to change the capitalization of a company, and, when done correctly, they can be excellent vehicles for improving an organization.

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Posted by: Julie Eisenhauer

4/27/2021: Applying for funding? Learn more about priority group applications here

4/13/2021: This article has been updated since originally published to reflect new guidance.

On March 11, 2021, President Biden signed the American Rescue Plan Act (the Act) into law to speed up the U.S. recovery from the economic and health impacts of the COVID-19 pandemic. Included in the Act is a Restaurant Revitalization Fund with appropriations of $28.6 billion in grants to support the restaurant industry. This is the first grant program specifically available to the restaurant industry.

Eligible businesses with gross receipts during 2019 of not more than $500,000 will have $5 billion available to them,

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