Hiring independent contractors? Make sure they’re properly classified

As a result of the coronavirus (COVID-19) crisis, your business may be using independent contractors to keep costs low. But you should be careful that these workers are properly classified for federal tax purposes. If the IRS reclassifies them as employees, it can be an expensive mistake. The question of whether a worker is an independent contractor or an employee for federal income and...
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New COVID-19 law makes favorable changes to “qualified improvement property”

The law providing relief due to the coronavirus (COVID-19) pandemic contains a beneficial change in the tax rules for many improvements to interior parts of nonresidential buildings. This is referred to as qualified improvement property (QIP). You may recall that under the Tax Cuts and Jobs Act (TCJA), any QIP placed in service after December 31, 2017 wasn’t considered to be eligible for 100%...
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4.17.2020

VRS Clients, We are continuing to follow the ever-changing set of rules handed down from Congress and the SBA. Please remember that what we know today could very well change tomorrow, and there is a LOT of misinformation floating around in these crazy times. Here is an update of what we know today: Individuals Stimulus payments have started going out based upon your 2019 tax return if filed, and...
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Relief from not making employment tax deposits due to COVID-19 tax credits

The IRS has issued guidance providing relief from failure to make employment tax deposits for employers that are entitled to the refundable tax credits provided under two laws passed in response to the coronavirus (COVID-19) pandemic. The two laws are the Families First Coronavirus Response Act, which was signed on March 18, 2020, and the Coronavirus Aid, Relief, and Economic Security Act...
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Answers to questions about the CARES Act employee retention tax credit

The recently enacted Coronavirus Aid, Relief, and Economic Security (CARES) Act provides a refundable payroll tax credit for 50% of wages paid by eligible employers to certain employees during the COVID-19 pandemic. The employee retention credit is available to employers, including nonprofit organizations, with operations that have been fully or partially suspended as a result of a government...
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The new COVID-19 law provides businesses with more relief

On March 27, President Trump signed into law another coronavirus (COVID-19) law, which provides extensive relief for businesses and employers. Here are some of the tax-related provisions in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Employee retention credit The new law provides a refundable payroll tax credit for 50% of wages paid by eligible employers to certain...
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3.31.2020 COVID-19 Update

Dear VRS Clients, We have received some updates regarding the Families First Coronavirus Response Act (FFCR – Phase 2) and the CARES Act (Phase 3). As always, this situation is changing and developing daily so please continue to read our updates in detail, as some updates may be overriding prior information provided. FFCR Act The IRS has addressed our confusion regarding the effective date of...
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3.30.2020 COVID-19 Update

Sec. 1110 of the Phase 3 bill authorizes banks participating with the SBA program to make emergency “grants” of up to $10,000 within 3 days to a qualified applicant. The qualified applicant pretty much just needs to show that they are facing economic hardship due to COVID-19 and need to get the funds to pay employees, rent, etc. If they eventually get approved for the big Payroll Protection...
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3.28.2020 COVID-19 Update

Dear VRS Clients, It has been a busy few days with additional guidance on the Phase 2 bill, and now we have the Phase 3 bill signed into law. This update will focus entirely on the impacts of the Phase 3 bill, but it is by no means a complete summary – we are only hitting the high points of the 850+ page bill. Individuals If you have been laid off or seen a reduction in hours, the bill boosts...
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3.27.2020 Update

VRS continues to monitor the situation in an effort to help our clients make the best possible decisions through this difficult time. Things are changing daily, so please make sure to check our most recent communications and posts on our website for the most up-to-date information. A message we put out a week ago may have changed. We had a great conversation yesterday with Dusty Johnson’s...
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