Reynolds, Bone & Griesbeck PLC Named a Memphis Top Workplace

Reynolds, Bone & Griesbeck PLC Named a Memphis Top Workplace

Reynolds, Bone & Griesbeck PLC (RBG) is pleased to announce that the firm was recently named to Commercial Appeal’s list of the Memphis Top Workplaces for 2020. 

“We are honored to be included on Commercial Appeal’s list of top workplaces for 2020 for the 8th consecutive year—especially considering the unique circumstances of this year” said Skeet Haag, CPA, managing partner of RBG. “I am proud of the way RBG has continued to provide an excellent work environment throughout an exceptionally tough year for many.” 

Each year, Commercial Appeal determines the top Memphis workplaces, developing a list that includes public, private, and nonprofit organizations. Employees can nominate their workplace via a 24-question survey that examines a variety of areas, including bosses, benefits, jobs, and areas where the organization stands out. Visit commercialappeal.com to view this year’s list in full. 

“We believe that the best way to provide outstanding service to our clients is to provide an outstanding workplace for our team members,” explained Haag. “Our high employee retention rate and a long list of satisfied clients attest to the fact that this plan is working.”

 
Reynolds, Bone & Griesbeck PLC is a premier CPA and advisory firm known for providing high-quality tax, accounting, auditing, and advisory services to a wide variety of clients. By investing in the next generation of professionals, RBG will continue its 104 year history of challenging and inspiring our people and clients to achieve their goals while creating lasting legacies.

Reynolds, Bone & Griesbeck PLC Announces New Team Members

Reynolds, Bone & Griesbeck PLC Announces New Team Members

Reynolds, Bone & Griesbeck PLC (RBG) is pleased to announce the return of Philip Brassell, CPA and Jared Kirk, CPA to their professional team. 

Brassell originally served RBG from 2017 to 2019. He spent one year as a corporate income tax accountant before returning to the firm as a senior tax accountant. In this role, his responsibilities include reviewing individual, trust, and partnership tax returns, preparing tax accruals for large corporations, preparing multinational corporate tax returns, and preparing and reviewing depreciation calculations. Kirk was a member of the RBG team from 2016 to 2019. He left to gain additional experience in both private and public accounting and now returns to RBG as an audit manager. He currently works in the manufacturing & distribution, nonprofit, and employee benefit plan industries. 

“I am very pleased that Philip and Jared have chosen to return to RBG,” said Skeet Haag, CPA, managing partner of RBG. “I am excited to see how the experience they gained outside of the firm has enhanced their ability to serve their clients and work with their colleagues.” 

In 2016, Brassell graduated from Mississippi College with a Bachelor of Business Administration in Accounting. He went on to attend the University of Mississippi, earning a Master of Accountancy in 2017. He is a member of the American Institute of Certified Public Accountants (AICPA) And the Tennessee Society of Certified Public Accountants (TSCPA). Brassell lives in Jackson, Mississippi with his wife, Bailee. 

Kirk studied at Delta State University, graduating in 2015 with a Bachelor of Business Administration in Accounting. He is currently affiliated with the AICPA and the TSCPA. Kirk resides in Southaven, Mississippi with his wife. 

Congress Enacts Additional Stimulus Legislation

On December 22, 2020, Congress passed the Consolidated Appropriations Act, 2021 (CAA2021), which includes $892 billion in coronavirus stimulus spending. This long-awaited and highly contested piece of legislation ties coronavirus relief funding into a $1.4 trillion resolution for funding the federal government through September of next year. The nearly $900 billion in stimulus funds comprises a variety of measures, including a renewal of enhanced unemployment benefits, an extension of the Paycheck Protection Program, and another round of individual stimulus payments. Read on for a breakdown of the various COVID-19 stimulus measures included in CAA2021.  

On Sunday, December 27, 2020, President Trump signed the CAA2021.

BUSINESS MEASURES
 
Paycheck Protection Program Extension (PPP2)
Portion of the stimulus package: $284 billion
CAA2021 provides an additional round of funding for the PPP and expands eligibility to include nonprofits (Sec. 501(c)(6)), local newspapers, TV stations, and radio stations.  
Additionally, it ensures the tax deductibility of business expenses paid with loan funds that are forgiven, a measure that has been widely called for by loan recipients and the American Institute of Certified Public Accountants (AICPA). For further details on PPP2, click here to read a helpful summary from the Journal of Accountancy.

Support for Entertainment Venues
Portion of the stimulus package: $15 billion
Funds for struggling live venues, independent movie theaters, and cultural institutions.  
Support for Business in Low-income Communities
Portion of the stimulus package: $12 billion
Funds earmarked for businesses in low-income and minority communities.
 
Economic Injury Disaster Loan Grants
Portion of the stimulus package: $20 billion
Additional funds to be administered through the Economic Injury Disaster Loan (EIDL) program that are dedicated to businesses in low-income communities.  

Support for Child Care Centers
Portion of the stimulus package: $10 billion
Aid money to help childcare centers safely reopen and to support families with child care costs. The money is to be administered via the Child Care Development Block Grant.  

Aid to Transportation Sector
Portion of the stimulus package: $45 billion
A variety of transportation-related assistance that includes $16 billion for airlines (for paying the salaries of workers and contractors), $14 billion for mass transit agencies, $10 billion for highways, and $1 billion for Amtrak.  
INDIVIDUAL MEASURES
 
Unemployment Benefits
Portion of the stimulus package: $120 billion
An extension of federal unemployment supplemental benefits through March 14, 2021 at a rate of $300 per week. Additionally, it legislates an extension of two pandemic unemployment programs set to expire at the end of December, the Pandemic Unemployment Assistance program, which has been expanded to provide aid to self-employed, temporary, and gig workers, and the Pandemic Emergency Unemployment Compensation Program, which provides an additional 13 weeks of benefits beyond the typical 26 weeks that states provide to jobless workers.  

Extension of Eviction Moratorium & Rental Assistance
Portion of the stimulus package: $25 billion
A temporary extension of the federal eviction moratorium through January 31, 2021 and $25 billion in emergency rental assistance.  

Economic Impact Payments
Portion of the stimulus package: $166 billion
Direct payments of $600 for qualifying adults and their child dependents. Individuals earning up to $75,000 annually (or married couples making up to $150,000) qualify for the full payment; individuals earning between $75,000 and $99,000 qualify for a reduced payment; individuals earning more than $99,000 do not qualify.  

Food Aid
Portion of the stimulus package: $13 billion
Additional funding for the Supplemental Nutrition Assistance Program and a benefit increase of 15% to last for six months.  
ADDITIONAL MEASURES
 
Support for Education Institutions
Portion of the stimulus package: $82 billion
This money is designated to help schools and universities reopen. The funds are earmarked as follows: $54 billion for public K-12 schools, $23 billion for colleges and universities, $4 billion for the Governors Emergency Education Relief Fund, $2.75 billion for private K-12 education, and nearly $1 billion for Native American schools.  

Funding for Vaccine Distribution and Coronavirus Testing
Portion of the stimulus package: $68 billion
CAA2021 includes money for both supporting the distribution of coronavirus vaccinations and for helping to pay for costs associated with COVID-19 testing. $30 billion is directed for the procurement of vaccines and treatments, the funding of distribution for states, and the creation of a strategic stockpile. $22 billion is earmarked for testing, tracing, and mitigation. Of the remaining funds, $9 billion will go to healthcare providers and $4.5 is earmarked for mental health.  

Increased Broadband Access
Portion of the stimulus package: $7 billion
Funding for broadband initiatives to support better connectivity and infrastructure. $3.2 billion is earmarked for the Emergency Broadband Benefit, which provides low-income families and individuals laid off or furloughed due to the pandemic with a monthly stipend of $50 to pay for internet services. $1.9 billion is dedicated to financing “rip and replace” projects—the removal and replacement of Huawei and ZTE networking equipment. $1 billion will go to Tribal broadband programs and $300 billion is dedicated to rural broadband deployment.  

Farm Aid
Portion of the stimulus package: $13 billion
Funding for farmers and ranchers.
 
Postal Service
Portion of the stimulus package: $10 billion
CAA2021 includes the forgiveness of a $10 billion loan made to the United States Postal Service earlier this year.  

WHAT’S NOT INCLUDED
 
A number of provisions that were initially included in proposed coronavirus stimulus legislation were, ultimately, left out of the bill. These include protection for businesses against litigation regarding COVID-19 exposure, financial aid to state and local governments, and an extension of federal student loan forbearance. 

Succession Planning Trends to Watch

Succession Planning Trends to Watch

This article discusses some of the basics that you can capitalize on to ensure that the succession of your business is as easy and efficient as possible. For example, tips such as communicating early, defining goals, and establishing a talent development program are all important things to consider when handing your business over. Be sure to check out this link for more details!

To view this article, click HERE to access the original content.

Processing Payroll in 8 Easy Steps

Processing Payroll in 8 Easy Steps

Although outsourcing payroll is an effective approach, completing payroll in-house can save your business time and money. You may think that completing payroll is a daunting task, but following tips such as determining overtime pay, calculating gross pay, and determining deductions before you start the payroll process can keep you in check. Additionally, keeping records after each pay period is also a vital tip. Check out this link to take a short quiz and to read more information!

To view this article, click HERE to access the original content.

Income Tax Brackets for 2020 and 2021

Income Tax Brackets for 2020 and 2021

This article discusses the importance of being educated on the latest income tax brackets and trends to best optimize your hard-earned savings. Each year the IRS adjusts the tax brackets and knowing exactly which one you and your business fall into and can be very beneficial. Be sure to check out this link to compare last year to the expected upcoming 2021 federal income tax bracket and rates.

To view this article, click HERE to access the original content.

Finding, Retaining, and Rewarding the Right Staff and Clients

Finding, Retaining, and Rewarding the Right Staff and Clients

This article discusses some of the best practices that you can incorporate into your startup or general business to keep adequate clients and customers surrounding your business. Whether it is superior customer service, being open and honest, and/or rewarding great work, these tips can set you apart from the competition. Be sure to check out this link for more details!

To view this article, click HERE to access the original content.

Deducting Losses – Current NOL Rules Related to the CARES Act

Deducting Losses – Current NOL Rules Related to the CARES Act

This article discusses how the coronavirus pandemic impacted many businesses in a negative way. Despite government funding programs such as the CARES Act and PPP Loan, many businesses are going to finish the year with a negative net operating loss. However, because of these losses, “It is critical for those businesses and especially their financial advisers to be updated on the current rules surrounding the NOL deduction.” Be sure to check out this link for more information!

To view this article, click HERE to access the original content.

Examining the Fed’s New Targeted Inflation Policy

Examining the Fed's New Targeted Inflation Policy

Looking back to 2012, the Federal Open Market Committee (FOMC) – a collaboration of the 12 regional Fed banks and the Federal Reserve Governors in Washington – came together and published a Statement on Longer-Run Goals and Monetary Policy Strategy. This officially rang in the FOMC's public commitment to maintain inflation at 2 percent. It is based on a yearly change in the Personal Consumption Expenditures (PCE) price index, and is in accordance with The Federal Reserve's “mandate for maximum employment and price stability.”

Guided by three events in the economy, according to the Brookings Institution, the FOMC was prompted to take a second look at 2012's existing framework. The first factor, an approximation of the “neutral level” of interest rates, or interest rate levels correlated “with full employment” and inflation targets, kept dropping globally. The “lower neutral rate” is achieved when short-term interest rates, which are controlled by The Fed, stay at levels closer to zero versus higher levels. When this occurs, The Fed has little room to further lower interest rates, and therefore stimulate the economy. The next factor involves inflation rates and anticipation for future inflation rates to stay below The Fed's 2 percent target. The last factor was unemployment falling to a five-decade low.

The FOMC's Aug. 27 update reveals that the inflation rate has been lower than the 2 percent inflation target in recent years, despite housing, food, and energy increasing in price for consumers.

When there's too little inflation, as The Fed explains, it can negatively impact the economy. If inflation remains below The Fed's “longer-run inflation goal,” it can propel a self-fulfilling prophecy of further declining inflation levels.

As originally explained in 2012 and updated in August, the FOMC's purpose is to “promote maximum employment,” keep prices stable, and “moderate long-term interest rates.” It also guides individuals and business owners with more information to make decisions, promote greater “economic and financial certainty” and increase “transparency and accountability.”

The Fed, based on their FAQ section, has said that when inflation runs below 2 percent for an extended period of time, monetary policy will adjust to run above 2 percent for a period of time. Therefore, the FOMC is hoping to ensure that “longer-run inflation” will average at 2 percent.

The FOMC's monetary policy is a big determinate in keeping the economy stable when the economy and financial systems are put out of balance due to factors such as inflation, long-term interest rates, and employment. The FOMC accomplishes its monetary policy via the “target range for the federal funds rate.”

Looking at the “level of the federal funds rate consistent with maximum employment and price stability over the longer run,” this rate has dropped compared to past average rates. With this in mind, the federal funds rate is generally expected to remain on the lower end of the rate spectrum more so now, versus years back. With interest rates closer to the bottom end, the FOMC believes that inflation and employment perils are more likely to stay depressed.

Based on comments from The Fed in August, the FOMC clarifies its Congressional Mandate regarding price stability and maximum employment, along with determinations on its short-term interest rate and other monetary policy considerations.

Following up on its Congressional mandate for The Fed to ensure maximum employment and price stability, the first thing to focus on is price stability or inflation.

Before, The Fed had a price stability target of 2 percent inflation, based upon the Personal Consumption Expenditures price index. The FOMC called this price stability “symmetric,” meaning that inflation above or below the target is equally concerning.

However, its new stance will now focus on attaining “inflation moderately above 2 percent for some time” after an ongoing time period of tame inflation. Based on comments from Fed Chair Jerome Powell, this is a flexible form of average inflation targeting.

This end goal of average inflation targeting suggests that when inflation is below the 2 percent target over an extended period of time, the FOMC will adjust its policy to encourage inflation above the 2 percent target to attain balance. However, The Fed didn't give details regarding the time frame for its new averaged 2 percent inflation target, nor did it specify what actions it will implement to achieve it.

The Fed also made noteworthy changes to its “maximum employment” mandate. When it comes to this measurement, it originally compared the projections of “the long-run rate of unemployment” to the unemployment rate. According to the Brookings Institution, this also can be referred to as “the natural rate of unemployment or the non-accelerating inflation rate of unemployment (NAIRU).”

Since live estimates of the NAIRU can be unreliable, it's no longer being considered. While the Summary of Economic Projections will still include estimates of unemployment statistics by FOMC members, it will unofficially take the place of the NAIRU readings. However, these FOMC members' long-run estimates of unemployment will have less impact on monetary policy decisions.

How Do Interest Rates Looking Going Forward?

With these two changes to The Fed's Congressional mandates, many expect monetary policy to be quite loose over the coming years, according to the Brookings Institution. By permitting hotter than normal inflation and low rates of unemployment, there's a remote chance The Fed will increase interest rates prior to inflation running north of 2 percent for a measurable time period.