With the ongoing impact of COVID-19 and the financial impact it's imposing on businesses and individuals alike, we want to keep you in the loop with all current and potential financial relief options that may apply to you. That said, there's been talk for quite sometime that there may be a second round of stimulus checks on the horizon. As it stands, the time to make a decision this calendar year on the approval of a second relief package is running out. According to Nancy Vanden Houten, lead economist at Oxford Economics, she is "pessimistic about the prospect of any significant near-term fiscal relief, and fear several social safety-net programs may be allowed to expire, affecting millions of households across the country." If Congress Read More...
Archives for November 2020
Guidance for PPP Loans and Expense Deductions
11/19/2020: U.S. Treasury and IRS issue Guidance for PPP Loans and Expense Deductions The U.S. Treasury and the Internal Revenue Service (IRS) released guidance yesterday, November 18th clarifying the deductibility of expenses where a Paycheck Protection Program (PPP) loan has not been forgiven by the end of the year. PPP loan forgiveness will not be considered taxable income, so any expenses paid with PPP loan funds will not be deductible. The result is neither a tax benefit nor tax harm because the taxpayer has not paid the expenses out of pocket. If a business reasonably believes that a PPP loan will be forgiven (even if the forgiveness takes place in the next tax year and/or the business has not filed for loan forgiveness) the Read More...
GAAP Considerations During a Global Pandemic
As mentioned in our previous post on preparing for your year-end financial statement audit, this year’s audit may look a little different than it has in the past. Our team at Christianson encourages you to be aware of the following U.S. Generally Accepted Accounting Principles (GAAP) considerations as you prepare for your year-end audit. Accounting for PPP loans – know your options Current financial reporting guidance allows PPP loans to be recorded as a liability or recognized as income (subject to meeting certain forgiveness eligibility criteria prior to the legal release from the SBA). The expenses that were offset by your PPP loan will be recognized in the year incurred. Keep in mind the tax implications of PPP loans. Read More...
Employee Benefits – Retention During a Pandemic
During these unprecedented times, we’ve seen businesses struggle with increased costs and the need to look at expenses with more granularity. Health insurance costs and employee benefits are no exception. Other challenges that have been highlighted during this challenging time include employee recruiting and retention. One thing that may help your business remain competitive in a job market where costs and turnover are high would be to look at the benefits you can offer your staff. Our experts may be able to help! At Christianson Insurance Agency, we leverage our extensive insurance advisory experience as well as our administrative capabilities to help business owners simplify their healthcare and benefit offerings. We take a Read More...