Arizona Tax & Business

https://moneywise.com/taxes/tax-refunds-may-be-later-this-year

Government leaders are warning US taxpayers to prepare for longer waits getting the refunds this year. Here’s how to adjust if you’re counting on that cash to pay bills or make big purchases Don't count your chickens before they hatch this spring.

Looking for a temporary job until April?
We are in need of a receptionist/administrative assistant for tax season. Find the full job listing on Indeed.Com

If you know of anyone that would be a good fit for this position, please have them reach out to me via Indeed or at [email protected]

Effective Tuesday, September 6, 2022 we will be at a new location: but not far, just across the parking lot to the west. Our new address is 6640 N Oracle, Ste #120. Our phone number & fax number will remain the same. Please note: If you try and call & get voice mail during normal business hours (Mon-Thurs 9am-4pm) - we are still waiting on the porting of our phones to a new provider and don't have a firm timeline as to when that will happen. Our email will be working as our internet is already working at the new office.

House readies final vote on $1.9 trillion COVID relief package The bill passed a procedural vote on Tuesday by a vote of 219-210, clearing the way for a final vote that is expected Wednesday morning.

Interesting Information....

What the Mail Backlog at the IRS Means for You The IRS’s backlog of mail has reached historic proportions. Whereas under “normal conditions,” the IRS advises taxpayers that it generally takes 6 to 12 weeks to process any tax returns and correspondence mailed to the agency, 2020 has been far from normal. How big is the backlog of mail? In J...

Tucson City Council approves utilities assistance grant for small businesses The grants will be distributed by the YWCA Southern Arizona.

Information regarding the payroll tax "holiday"

As many of you have undoubtedly heard in the news, On August 8, President Trump signed an Executive Order authorizing a "payroll tax holiday" starting September 1, 2020 through December 31, 2020. On Friday, August 28th, the IRS released guidance on this Executive Order for employers. This memo is to clarify the actual mechanics of the Executive Order.

1. THIS IS A TAX DEFERMENT, NOT A HOLIDAY - As of today, 8/31/2020, all amounts not paid by the employees between September 1, 2020 & December 31, 2020 must be repaid between January 1, 2021 & April 30, 2021. Any amounts not paid in full are subject to penalties & interest beginning May 1, 2021 (the Employee’s responsibility)

2. THE DEFERMENT IS THE EMPLOYEES' PORTION OF SOCIAL SECURITY - The deferment is for the amount of the employees' withholding of social security taxes - 6.2% on all checks dated 9/1/20-12/31/20, if the employee elects to have the taxes deferred. The employer is still subject to their 6.2% on all wages earned during this period. Please see the example below as to the effect this will have on an employee’s paycheck.

3. Employees who earn more than $2000 per week or $104,000 annually are not eligible for the deferment. (Biweekly= $4000, Semi-Monthly=$4333, Monthly=$8667)

4. The Executive Order states the deferral shall be made available to any employee (who makes less than the threshold amount noted in 3 above). It is not mandatory for any or all employees and as such is an individual decision for each employee.

5. Many media outlets have reported that the Executive Order was for a “payroll tax holiday” including Federal Income Tax, this is incorrect. The Executive Order specifies the tax imposed under 26 U.S.C. 3101(a), which is only the OASDI or Social Security Tax Amount.

6. The order also directs the Secretary of the Treasury to explore avenues, including legislation to eliminate the repayment of the deferred taxes. It is our opinion that this will require legislation by the House & the Senate, as well as the President.

7. Record-keeping for any employee who elects to participate in the deferment will need to be done. Although software companies are working to make these changes as quickly as possible, many software platforms may not have the capability in place by 9/1/20. This will require more record-keeping by your payroll departments and/or payroll provider and may increase fees.

Example: If you have bi-weekly payroll and an employee earns $1000 - $62 is their normal social security taxes that are withheld. This $62 can be deferred until January 2021, when they will have to repay the $62 that was deferred, plus the $62 for their current withholding. Effectively paychecks would increase by 6.2% of gross pay temporarily, but then the deferment amount must be paid back. Also note that this example is assuming that the employee’s gross income will stay the same. There are many possible complex situations when considering the following items: Bonuses, Pay Increase, Tipped Employees, or Reduction in Hours, etc.

Link to Executive Order:

Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster Search, browse and learn about the Federal Register. Federal Register 2.0 is the unofficial daily publication for rules, proposed rules, and notices of Federal agencies and organizations, as well as executive orders and other presidential documents.

Before everyone gets excited about the executive order signed on 8/8....Read the fine print.....

6 Reasons Not To Celebrate The Payroll Tax Holiday 6 reasons the payroll tax holiday may not be the help you were expecting.

Great News for Small Businesses..... Now hoping the President signs it.

The Senate passes the Paycheck Protection Plan Flexibility Act | Explore Our Thinking | Plante Moran The Senate passed the Paycheck Protection Plan Flexibility Act, which aims at helping small businesses take better advantage of the provisions of the PPP.

https://www.nixonpeabody.com/en/ideas/articles/2020/05/28/sba-issues-interim-final-rule-on-ppp-loan-forgiveness