What is Business Identity Theft and How to Avoid It

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What is Business Identity Theft and How to Avoid It

This article dives deep into the concept of business identity theft, as well as preventive measures that you can take in order to reduce the potential fallout. For example, one piece of advice is to “hire forensic accountants to look at your books…and frequently.‚Äù Along with bringing on a forensic accountant, investing in security can be a potential business saver. Be sure to check out this link for more information and details!

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Things to Consider Before Applying for a PPP Loan

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Things to Consider Before Applying for a PPP Loan

This article discusses and addresses the uncertain times that businesses are living through right now due to the coronavirus pandemic. With the passing of the Paycheck Protection Program, there are many things to consider when applying for this government aid. For example, knowing the guidelines are not set in stone, tax burdens, tax-deductibility, and a second draw are all things to be contemplated as you start the application process. Be sure to check out this link for more information!

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Marketing Tips for Start-ups

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Marketing Tips for Start-ups

This article outlines and then continues to dive into detail about seven marketing tips for your start-up business. As a start-up, funds can be limited, but tips such as solidifying your brand, staying true to yourself, clearly define your goals and metrics, budgeting, and social media usage can all benefit your business. Be sure to check out this great link for more information and details on how to utilize these tips!

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Building a Lasting Family Business

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Building a Lasting Family Business

This article acknowledges and discusses the portrayal that the media gives us of family businesses. Although this industry operates on the more risky side, the owners of family businesses possess a unique decision making power. Additionally, this article outlines the different types of models that you may want to incorporate inside your family business as well as the owner strategy triangle. Be sure to check out this great source for more information!

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Trends Driving Small Business in 2021

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Trends Driving Small Business in 2021

This article discusses how the COVID-19 pandemic has changed the landscape on which most small businesses operate. However, trends such as digital footprint, virtual efficiency, workplace culture, and customer reviews are all set to be significant in the new year. No matter your specific industry, these trends apply to all small business leaders. 

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Looking Ahead to 2021: Hope is Not Canceled

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Looking Ahead to 2021: Hope is Not Canceled

Despite the fresh start that a new year promises, our world has not changed much since last March. We are still living in a new normal. We are masking up, working (and schooling) from home, and maintaining social distance. Furthermore, scores of community events and activities have been canceled. However, there is something that has never been canceled: hope. Here are a few considerations to embrace to lift your spirits and help you navigate all the uncertainty.

Be Happy: The COVID-19 Vaccine is Here

This is incredible news. To date, there are two vaccines: Pfizer-BioNTech and Moderna. Those who receive the Pfizer-BioNTech shot will be given two injections, 21 days apart. Those who receive the Moderna shot also will be given two injections, one month (28 days) apart. Both are given in the muscle of the upper arm and can cause mild side effects. However, clinical trials for both have shown a high level of efficacy. Learn more about each one here. The vaccine will be rolled out in phases. Healthcare personnel and residents of long-term care facilities will be offered the first doses. Learn more about who will get it and when here. The fact that we even have a vaccine available might well be the very definition of hope.

Feel Refreshed: Take a News Break

Since most of us are isolated to some degree, it is only natural to turn to our devices. Games and social media both have the potential to take your mind off of the pain in our world. However, if you tend to veer toward newsfeeds that feature nothing but bad news (which can be addicting), perhaps it is time to take a break. According to Verywell.com, a constant stream of sensational or disaster reporting, whether you are exposed actively or passively, can elevate stress levels and trigger symptoms like anxiety and sleep troubles, robbing you of your well-being. So, unplug. Step away from your laptop. Give your phone to a family member, partner, or friend. Get outside and soak in some vitamin D. Re-claim that part of yourself that sees the glass half full.

Ditch the Guilt: Plan Your Cheat Meals

If you have been looking to food for some much-needed comfort over the past year, you are not alone. Being at home just a few feet away from a fully stocked kitchen is tempting every minute! Perhaps some of you have banished any guilt about indulging, but for those who just cannot seem to shake it, choose your moments to indulge. Satisfy your cravings a few times a week or just on the weekends. The less you do this, the more you will enjoy it. And when you want to splurge, why not support a local restaurant by ordering takeout? You’ll feel better in no time.

Chill Out: Spend Time Doing Nothing

With everything going on and all the responsibilities of living life and crossing things off our lists, stopping to do nothing might seem counter-intuitive; but often, it’s the best remedy for eliminating stress and restoring your sanity. Carving out time to sit with the feelings you are experiencing – whether irritation, anxiety, or sadness – can help dissipate them. Take some advice from Winnie the Pooh who said, “Doing nothing often leads to the very best of something.” When you give yourself permission to let go and empty your mind, you’ll be rejuvenated and ready to begin again.

Even though the happenings of 2020 were unprecedented, the truth is you do have a new year ahead. One that can be anything you want it to be. Just grab hold of something that has always been there and will never be canceled: hope.

 

Sources 

https://www.cdc.gov/coronavirus/2019-ncov/vaccines/different-vaccines.html

https://stephanieyounger.com/blog/love-hope-kindness-and-community-have-not-been-canceled

https://www.verywellmind.com/is-watching-the-news-bad-for-mental-health-4802320#:~:text=A%20constant%20stream%20of%20sensational,like%20anxiety%20and%20trouble%20sleeping.

https://theweekendfox.com/9-quotes-from-christopher-robin-that-are-good-for-the-soul/#:~:text=%E2%80%9CDoing%20nothing%20often%20leads%20to,best%20of%20something.%E2%80%9D%20%E2%80%93%20Pooh

Congress at Work: Prosecution for Use of Performance Enhancement Drugs, Modernizing Government Technology, and More

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Congress at Work: Prosecution for Use of Performance Enhancement Drugs, Modernizing Government Technology, and More

The Congress at Work series of articles is designed to give you a glimpse of various types of legislation currently under consideration. While either the Senate or the House of Representatives may initiate a bill proposal, be aware that many bills never become law. They may never make it out of committee, be blocked by a Senate filibuster, be delayed, lack sufficient votes, never be agreed upon by the two houses or be vetoed by the president.

Rodchenkov Anti-Doping Act of 2019 (HR 835) – This bill was introduced by Rep. Sheila Jackson Lee (D-TX) on Jan. 29, 2019. The purpose of this legislation is to give U.S. officials the power to prosecute individual athletes who used performance-enhancing drugs at international sports competitions involving American athletes. The legislation has been criticized by the World Anti-Doping Agency (WADA) as undermining the global anti-doping movement based on international cooperation and because no other nation has extra-territorial jurisdiction in this field. The bill passed in the House in October, passed in the Senate in November, and was signed into law by the president on Dec. 4.

IoT Cybersecurity Improvement Act of 2020 (HR 1668) – This bill requires the National Institute of Standards and Technology (NIST) and the Office of Management and Budget (OMB) to establish minimum security standards for Internet of Things devices owned or controlled by the Federal Government. The legislation was introduced by Rep. Robin Kelly (D-IL) on March 11, 2019, passed in both Houses, and was signed into law on Dec. 4.

Information Technology Modernization Centers of Excellence Program Act (HR 5901) – Introduced by Rep. Ro Khanna (D-CA) on Feb. 13, this bill authorizes the establishment of an Information Technology Modernization Centers of Excellence Program. The purpose of the program is to help executive agencies adopt secure modern technology in coordination with the Department of Homeland Security. The program must provide regular reports to Congress. The legislation passed in the House in September, passed in the Senate in November, and was signed into law by the president on Dec. 3.

Veterans COMPACT Act of 2020 (HR 8247) – Short for Veterans Comprehensive Prevention, Access to Care and Treatment, this bill authorizes a variety of programs, policies, and reports that fall under the Department of Veterans Affairs (VA). Components of the legislation address transition assistance, suicide care, mental health education and treatment, healthcare, and female veteran care. It includes a program to provide education and training for caregivers and family members of veterans with mental health disorders. The bill also establishes a Task Force on Outdoor Recreation for Veterans to recommend public lands or other outdoor spaces to be used for medical treatment and therapy. The bill was introduced by Rep. Mark Takano (D-CA) on Sept. 14. It passed in the House in September, the Senate in November, and was signed by the president on Dec. 5.

Wounded Veterans Recreation Act (S 327) – This bill offers a free lifetime pass to National Parks and Federal Recreational Lands to any U.S. resident who has been medically determined to be permanently disabled (must furnish adequate proof of disability and citizenship or residency), as well as to any veteran with a service-connected disability. It was introduced by Sen. Jeanne Shaheen (D-NH) on Feb. 4, 2019, passed in the Senate in June, passed in the House in November, and was signed into law by the president on Dec. 3.

Transparency and Effective Accountability Measures (TEAM) for Veteran Caregivers Act (S 2216) – Designed to upgrade VA caregiver programs by identifying and formally recognizing caregivers of veterans and notifying them of assistance available under the Program of Comprehensive Assistance for Family Caregivers. The bill also temporarily extends benefits for veterans who are determined to be ineligible for the family caregiver program, including a monthly personal caregiver stipend. This bill was introduced by Sen. Gary Peters (D-MI) on July 23, 2019. It passed in the Senate in November, passed in the House in December, and is currently waiting for enactment by the president.

Reynolds, Bone & Griesbeck PLC Announces New Promotions

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Reynolds, Bone & Griesbeck PLC Announces New Promotions

Reynolds, Bone & Griesbeck PLC (RBG) is pleased to announce the promotions of Ross Braswell, CPA, Hunter Stock, CPA, JD, Elizabeth “EA” McCarty, CPA, Connor Shannon, CPA, and Mitch West, CPA.

A long-time member of the RBG team, Braswell joined the firm in 1994. With this promotion, he moves from firm technology manager to financial controller. Stock joined the RBG team in 2013 as tax staff and served as tax senior and tax manager before stepping into his new role, tax senior manager. McCarty, Shannon, and West joined RBG in 2018, 2019, and 2020, respectively, serving in the audit department. With their promotions, all three take on the responsibilities of audit senior.

“These promotions make for a very exciting time at RBG,” said Skeet Haag, CPA, managing partner of RBG. “All of these professionals have displayed dedication and hard work and we are excited to see them take the next step in their careers. We are confident they will continue to provide exceptional service in their new roles.”

Braswell attended Southern Methodist University, earning a Bachelor of Fine Arts in Theater and a Bachelor of Art in English. He went on to study at the University of Memphis, graduating with a Master of Accountancy. He is a member of the American Institute of Certified Public Accountants (AICPA) and the Tennessee Society of CPAs (TSCPA). Braswell is a native of Memphis and currently lives in the city with his wife, Cathy.

Stock earned a bachelor’s degree from the University of Tennessee Knoxville in 2007. He went on to study at the University of Memphis Cecil C. Humphreys School of Law, earning a Juris Doctor in 2011. He is a member of the AICPA, the TSCPA, and the Tennessee Bar Association. Stock currently lives in Bartlett, Tennessee with his wife, Emily, and their two children.

An alumna of Mississippi State University, McCarty earned a Bachelor of Accountancy in 2018 and a Master of Professional Accountancy in 2019. She is affiliated with the AICPA and the TSCPA. Raised in Tupelo, Mississippi, McCarty currently lives in Memphis.

Shannon studied at Arkansas State University, earning a Bachelor of Science in Accounting in 2018 and a Master of Accountancy in 2019. He currently lives in Memphis with his wife, Ali.

A graduate of Mississippi College, West earned a Bachelor of Finance in 2016 and a Master of Business Administration in 2017. Originally from Batesville, Mississippi, he now lives in Memphis with his wife. 

Key Changes to the Employee Retention Credit

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On December 27, 2020, President Trump signed the Consolidated Appropriations Act, 2021 (CAA) into law. A recent article from JD Supra outlines two key provisions included in the act that make changes to the employee retention credit.

Established by the CARES Act, the employee retention credit was designed to incentivize employers to maintain their staff in the midst of the coronavirus pandemic. For the period from March 13, 2020 to December 31, 2020, eligible employers could claim a 50% retention credit for qualified wages, capping out at $5,000 per employee.

The CAA both extends and expands the employee retention credit, including making retroactive changes to it for 2020. It does so via two provisions:

Section 206 – This provision makes retroactive changes back to March 13, 2020, when the ERC was established. Firstly, the ERC is now eligible for recipients of loans through the Paycheck Protection Program (PPP). Previously, PPP participants were barred from claiming the ERC. Employers should note that they may not claim the ERC on wages paid with forgiven PPP loan funds.

Secondly, Section 206 offers clarification regarding “qualified health plan expenses” and the ERC. It explains that these expenses are, indeed, eligible for the ERC, even when they are attributable to a furloughed employee who is not receiving any other compensation at the time.

The third change—another clarification—is in regard to the “gross receipts” test for tax-exempt organizations. In determining their eligibility for the ERC, tax-exempt organizations must account for all gross receipts, not just those from unrelated trade or business activities.

Lastly, Section 206 offers employers a means for catching up on unclaimed ERC for 2020. Employers should claim the additional ERC on their fourth quarter Form 941, which is due by January 31, 2021. Further guidance in this area is expected this month.

Section 207 – This second provision includes an extension of the ERC for the period from January 1, 2021 to June 30, 2021. Additionally, it expands the ERC in the following ways:

  • Increases the credit from 50% to 70%, for the portion of 2021 that the ERC covers.
  • Adjusts the per-employee cap on the ERC to $7,000 per quarter.
  • Decreases the eligibility threshold from a 50% decline in gross receipts to a 20% decline.
  • Expands eligibility for the ERC from employers with up to 100 employees to employers with up to 500 employees.
  • Eliminates the qualified wages cap for employee pay increases.
  • Eliminates the option to receive advance payment of the ERC via IRS Form 7200 and/or IRS Form 941 for employers with more than 500 employees.
  • Expands the availability of advance payments of the ERC for employers with 500 or fewer employees.
  • Creates a process for repaying advance payments of the ERC, in the event of excess payments.
  • Makes some governmental employers eligible for the ERC in 2021.
  • Maintains the non-eligibility of the ERC for wages accounted for under IRC Section 45S and expands the non-eligibility to also cover wages accounted for under IRC Section 41, IRC Section 45A, IRC Section 45P, IRC Section 51, and IRC Section 1396.
  • Requires the U.S. Small Business Administration and the IRS to coordinate in a public awareness campaign targeting employers eligible for the ERC.

For further details, click here to read the article in full at JD Supra.

New Paycheck Protection Program Guidance Released

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On Wednesday, January 6, the U.S. Small Business Administration (SBA) and the Treasury issued joint guidance regarding the latest updates to the Paycheck Protection Program (PPP), as amended by the recent COVID-19 relief bill. A recent article from the Journal of Accountancy offers an overview of the guidance, which includes the following items:

  1. An interim final rule titled, “Business Loan Program Temporary Changes; Paycheck Protection Program as Amended” – This document includes a consolidation of PPP rules for borrowers using the program for the first time. It also gives an explanation of program changes made by the recent COVID-19 relief legislation. Click here to read the document in full. 
  2. An interim final rule titled, “Business Loan Program Temporary Changes; Paycheck Protection Program Second Draw Loans” – This document covers the various regulations for businesses that received PPP loans through the initial program and now want to pursue a second-draw loan. Click here to read the document in full. 
  3. Additional guidance titled, “Guidance on Accessing Capital for Minority, Underserved, Veteran and Women-Owned Business Concerns” – This document gives details on the SBA’s commitment to opening the second PPP application window exclusively to minority- and women-owned businesses for the first two days. Click here to read the document in full.

The article offers a helpful overview of a number of PPP details that have changed with this second round of loan funding, including the following:

  • Second-draw PPP loans of up to $2 million are available for eligible businesses that received first-round funding. Eligibility requirements include having 300 or fewer employees; having used the entirety of the first-round funding on eligible expenses prior to receiving second-draw funding; having experienced a reduction in revenue of 25% or more, comparing an eligible time period in 2020 with one in 2019.¬†
  • Businesses that did not receive PPP funding in the first round may be eligible for second-round PPP funding if they meet the following criteria: having 500 or fewer employees and being eligible for other SBA 7(1) loans; being a sole proprietor, independent contractor, or eligible self-employed individual; being a non-profit; being an operation in the accommodation and food services sector with fewer than 500 employees at a single physical location; being a Section 501(c)(6) business league with 300 or fewer employees; certain qualifying news organizations.
  • The maximum allowable amount for both first- and second-draw PPP loans is 2.5 times the organization‚Äôs average monthly payroll, though some eligible businesses can receive up to 3.5 times their average monthly payroll. For first-draw PPP loans, the maximum tops out at $10 million.¬†
  • In addition to the original definition of ‚Äúeligible costs‚Äù for the purpose of PPP loan usage, PPP loans from the second round of funding can be used to cover PPE and facility modification, property damage related to public disturbances not covered by insurance, expenditures for purchases essential to current operations, and certain covered operating expenditures.
  • The latest COVID-19 relief bill included specific provisions for PPP applicants that are minority, underserved, veteran, and women-owned businesses. This includes certain amounts of PPP loans set aside for these groups and other commitments by the SBA to ensure that businesses in these categories are served through the PPP program.¬†

The timeline for the second PPP application window is as follows:

  • January 11, 2021 ‚Äì Applications for first-draw PPP loans can be submitted by community financial institutions.
  • January 13, 2021 ‚Äì Applications for second-draw PPP loans can be submitted by community financial institutions.
  • To be announced ‚Äì Applications for first- and second-draw PPP loans can be submitted by all participating lenders.
  • March 31, 2021 ‚Äì The second PPP application window closes.¬†

For more details on the second application window for PPP loans, check out this article from the Journal of Accountancy. 

To apply for PPP funds in this second round of funding, first-time borrowers should use Form 2483 – Paycheck Protection Program Borrower Application Form and borrower seeking second-draw loans should use Form 2483-SD – PPP Second Draw Borrower Application Form. For more details on these forms and the procedures that accompany them, click here for a helpful article from the Journal of Accountancy.