Archives for Industry News

Is Your Company Eligible for the Employee Retention Tax Credit?

April 23, 2021 | by | Comments Off on Is Your Company Eligible for the Employee Retention Tax Credit?

Richard A. Huffman, CPA, MST Tax Partner By retaining employees during the pandemic, your company may be eligible for a payroll tax credit of up to $5,000 per employee in 2020 and $28,000 per employee in 2021. The employee retention tax credit (ERTC) is a fully refundable payroll tax credit for employers who meet certain requirements that is based on qualified wages paid between March 13, 2020 to December 31, 2021. The qualifications and credit thresholds are segmented into two time frames, March 13, 2020 to December 31, 2020 and January 1, 2021 to December 31, 2021. The two separate
Read More

Categories: Industry News and Newsletter and Updates.
Tags: accountant, accountants, accounting, accounting firm, business, ca, california, certified public accountants, coronavirus, covid, covid19, cpa, cpa firm, employee credit, employee retention credit, ertc, firm, irvine, law, newsletter, oc, orange county, pandemic, small business, so cal, southern california, tax, tax firm, tax law, taxation, taxes, wfy, wright ford young, and wright ford young & co.

AI in Auditing

April 1, 2021 | by | Comments Off on AI in Auditing

By Carissa DeLuca, CPA, CFE Audit Manager   For several years now we’ve been hearing about how Artificial Intelligence (AI) is the future of seemingly just about every industry.  Industries from healthcare to banking have started to uncover the benefits of using AI. The accounting profession is no different and is starting to adapt AI in many service areas. The Wright Ford Young & Co. audit team has taken a dive into the use of AI with some of our 2020 audit engagements.  We have a selected a program that will enhance our review of our clients’ general ledgers and
Read More

Categories: Company News, Industry News, and Newsletter and Updates.
Tags: accountant, accountants, accounting, accounting firm, ai, artificial intelligence, audit, auditing, business, ca, california, certified public accountants, cpa, cpa firm, firm, irvine, newsletter, oc, orange county, small business, so cal, southern california, tax, tax firm, taxation, taxes, wfy, wright ford young, and wright ford young & co.

Employers with Over 50 Employees Must Register with CalSavers by June 30

April 1, 2021 | by | Comments Off on Employers with Over 50 Employees Must Register with CalSavers by June 30

By June 30, 2021, nonexempt employers with more than 50 California W-2 employees must register with the CalSavers program. For exempt employers, if you’ve already offered a retirement plan, you do not have to participate in the program, but you still must register as “exempt” on the CalSavers website. Nonprofit organizations must register with CalSavers as well (if not exempt), but religious organizations are exempt from the registration requirements. How to Register for CalSavers Program For registering, employers will be notified via letter of their requirement to register with the CalSavers program. An access code will be given to them
Read More

Categories: Industry News and Newsletter and Updates.
Tags: accountant, accountants, accounting, accounting firm, business, ca, california, calsavers, calsavers program, calsavers retirement program, certified public accountants, cpa, cpa firm, employees, employer, firm, ftb, IRS, irvine, oc, orange county, retirement, retirement program, small business, so cal, southern california, tax, tax firm, taxation, taxes, wfy, wright ford young, and wright ford young & co.

Significant Tax Provisions from Biden’s American Rescue Plan Act

March 18, 2021 | by | Comments Off on Significant Tax Provisions from Biden’s American Rescue Plan Act

Richard A. Huffman, CPA, MST Tax Partner   The American Rescue Plan Act signed into law by President Biden includes the following significant tax provisions: Business tax provisions: Family and sick leave credits – Extends tax credits through 9/30/21. Employee retention credit – Extended through 12/31/21, program criteria as follows: To qualify experienced a full or partial suspension of business operations due to COVID-19 governmental orders or incurred at least 20% decline in quarterly gross receipts as compared to the 2019 year quarter. Main benefits for employers with up to 500 full-time employees (limited benefits for employers with more than
Read More

Categories: Industry News and Newsletter and Updates.
Tags: accountant, accountants, accounting, accounting firm, american rescue plan act, biden, business, ca, california, certified public accountants, coronavirus, covid, covid19, cpa, cpa firm, firm, individual, IRS, irvine, law, oc, orange county, pandemic, ppp, small business, so cal, southern california, stimulus bill, stimulus plan, tax, tax bill, tax firm, tax law, tax provisions, tax reform, taxation, taxes, wfy, wright ford young, and wright ford young & co.

CA Lawmakers Reach COVID Relief Deal Including Partial PPP Conformity

February 18, 2021 | by | Comments Off on CA Lawmakers Reach COVID Relief Deal Including Partial PPP Conformity

Richard A. Huffman, CPA, MST Tax Partner   The long awaited recently announced California pandemic relief package includes the following benefit highlights for businesses and individuals: California partial conformity to federal tax treatment of Paycheck Protection Plan loans allowing companies to deduct up to $150,000 in expenses covered by the PPP loan (including Economic Injury Disaster Loan grants). Increase the funds available for the small business and nonprofit grant program (2018 or 2019 gross revenues less than $2.5M) from $500 million to more then $2 billion.  Information regarding this grant program can be found at the following link: https://www.grants.ca.gov/grants/california-small-business-covid-19-relief-grant-program/. Two
Read More

Categories: Industry News and Newsletter and Updates.
Tags: accountant, accountants, accounting, accounting firm, business, ca, california, certified public accountants, coronavirus, covid, covid relief, covid19, cpa, cpa firm, firm, irvine, newsletter, oc, orange county, pandemic, pandemic relief package, ppp, small business, so cal, southern california, tax, tax firm, taxation, taxes, wfy, wright ford young, and wright ford young & co.

New COVID Relief Bill Expanded Employee Retention Credit Benefits

January 7, 2021 | by | Comments Off on New COVID Relief Bill Expanded Employee Retention Credit Benefits

Richard A. Huffman, CPA, MST Tax Partner   The recently enacted stimulus law expands and clarifies the CARES Act Employee Retention Credit (ERTC), key details are as follows: Beginning on January 1, 2021 and through June 30, 2021, the provision: Increases the credit rate from 50% to 70% of qualified wages. Expands eligibility for the credit by reducing the gross receipts decline from 50% to 20% over a prior quarter. Qualified wages are increased from $10,000 in total per employee to $10,000 per quarter per employee. Qualified wage restrictions apply at 500 employees, rather than 100. Removes the 30-day wage
Read More

Categories: Industry News and Newsletter and Updates.
Tags: accountant, accounting firm, business owner, businesses, cares act, covid relief bill, cpa, cpa firm, credit, employee credit, employee retention credit, ertc, irvine, orange county, ppp, small business, so cal, stimulus, tax, tax benefit, tax firm, taxation, wfy, and wright ford young.

2021 Payroll Tax and Standard Auto Mileage Rate Changes

January 5, 2021 | by | Comments Off on 2021 Payroll Tax and Standard Auto Mileage Rate Changes

Bonnie Thompson   Beginning January 1, 2021, the following changes go into effect for the withholding of payroll taxes and reimbursement of auto mileage. SOCIAL SECURITY The wage base for withholding social security tax has increased to $142,800. The social security tax rate will be 6.2% for both employers and employees for a maximum expense of $8,853.60  For Medicare, the rate is still 1.45% each for employers and employees with no limit this year. Continuing in 2021, employees earning in excess of $200,000 will be subject to a mandatory additional 0.9% medicare tax withholding regardless of their individual tax filing
Read More

Categories: Industry News and Newsletter and Updates.
Tags: accountants, accounting, auto mileage rate, cpa, cpa firm, insurance, irvine, mileage rate, orange county, payroll tax, reimbursement, sdi, social security, state disability insurance, tax, tax firm, taxation, unemployment, unemployment insurance, wfy, and wright ford young.

New COVID Relief Bill Signed Into Law

December 22, 2020 | by | Comments Off on New COVID Relief Bill Signed Into Law

Richard A. Huffman, CPA, MST Tax Partner   The House and Senate passed the Consolidated Appropriations Act, 2021 (CAA, 2021) which is expected to be signed into law by the President. The CAA, 2021 bill includes the renewal and expansion of popular provisions in earlier COVID relief bills with the significant provisions summarized as follows: Paycheck Protection Program (PPP) forgivable loan expenses allowed as a tax deduction (overriding IRS ruling disallowing the deduction). Uncertainty remains whether California and other states will conform. Reopen PPP for first time borrowers who have not yet applied or who previously withdrew their application. Second
Read More

Categories: Industry News and Newsletter and Updates.
Tags: accountant, accountants, accounting, accounting firm, business, ca, caa, california, certified public accountants, consolidated appropriations act, coronavirus, covid, covid relief, covid relief bill, covid19, cpa, cpa firm, firm, irvine, newsletter, oc, orange county, pandemic, ppp, ppp loans, small business, southern california, tax, tax deduction, tax firm, taxation, taxes, trump, wfy, wright ford young, and wright ford young & co.

New California Sales Tax Relief Announced for Small Businesses

December 17, 2020 | by | Comments Off on New California Sales Tax Relief Announced for Small Businesses

Ryan Working, CPA, MST Tax Director   Back in April 2020, the Governor allowed taxpayers to apply for sales tax penalty and interest relief for 90 days for any taxpayer reporting less than $1 million in sales on their sales tax return. The Governor has now directed the California Department of Tax and Fee administration (CDTFA) to provide additional and expanded temporary tax relief for eligible small businesses impacted by COVID-19.   This temporary relief includes the following: Automatic three-month sales tax extension for taxpayers filing less than $1 million in sales tax. Interest and penalties will not accrue on the
Read More

Categories: Industry News and Newsletter and Updates.
Tags: accountants, accounting, ca small business, cdtfa, coronavirus, covid, cpa, cpa firm, irvine, orange county, pandemic, sales tax credit, small business, so cal, tax, tax credit, tax firm, tax relief, tax return, taxation, taxpayer, wfy, wright ford young, and wright ford young & co.

Applying and Qualifying for CA Small Business Hiring Tax Credit

December 17, 2020 | by | Comments Off on Applying and Qualifying for CA Small Business Hiring Tax Credit

Cameron Lee Tax Staff   Applications have recently opened on December 1st, 2020 to apply for California’s small business hiring tax credit. This past September, Governor Gavin Newsom signed SB 1447 allowing qualifying small business owners to claim a $1,000 credit for each net increase in monthly average employees. Each employer is limited to no more than $100,000 total credit under this program. In order to qualify for the credit, taxpayers must meet the following: Have 100 or fewer employees on December 31, 2019 (all employees, including part-time employees). Have experienced a 50% decrease in gross receipts from April to
Read More

Categories: Industry News and Newsletter and Updates.
Tags: accountants, accounting, ca small business hiring tax credit, cdtfa, cpa, cpa firm, irvine, orange county, s corporations, small business, small business owner, so cal, tax, tax credit, tax firm, taxation, taxpayer, wfy, wright ford young, and wright ford young & co.