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ppp

SBA Releases PPP Flexibility Act Guidance and Revised Forgiveness Application Form

ppp

Richard A. Huffman, CPA, MST
Wright Ford Young & Co., CPAs

The Small Business Administration has released additional Paycheck Protection Program (PPP) guidance and revised the forgiveness application form to align with the Paycheck Protection Program Flexibility Act which was signed into law on June 5, 2020. Highlights of the updates are as follows:

1. For non-owners included compensation is 24 weeks of compensation up to $100,000 with a maximum per employee amount of $46,154.
2. For owners (S and C corporation owner-employees, self-employed individuals and general partners) the included compensation is the lesser of 2.5 months of 2019 compensation or $20,833.
3. Employer paid health insurance is only included for non-owners, excluded for all owners.
4. Employer paid retirement plan contributions are included for employees (including S and C Corporation owner-employees) but excluded for self-employed individuals and general partners.
5. Clarified that if less than 60% of the loan proceeds are utilized for payroll costs, the amount qualifying for forgiveness will be incrementally reduced.
6. There is a new EZ application for forgiveness that requires fewer calculations and can be utilized if meet certain criteria.

If you have not yet applied, PPP funds are still available with an application deadline of June 30, 2020.

For additional information or guidance regarding the Paycheck Protection Program, please contact your WFY advisor or contact us here.
© Copyright 2020. All rights reserved.

two new hires

WFY Welcomes Two New Hires to Audit Department

This month, Wright Ford Young & Co. is pleased to announce we have two new hires joining our team. Mimi Duong will be joining as an Audit Staff and Lauren Gilmour will be joining as an Audit Intern in our audit department. WFY is pleased to welcome these new hires to our team.

Mimi Duong

At the end of May, Mimi Duong started a position with WFY as Audit Staff.  She will be graduating CSUF later this year with a Business Administration degree with a concentration in Accounting.  In her spare time, she enjoys spending time with friends and family, experimenting with makeup, and trying new foods.

Lauren Gilmour

Lauren Gilmour joined WFY as an Audit Intern in May. She is currently attending USC as a Junior, and this will be her first experience working at a CPA firm.  Other than attending her classes, she loves to hike, go to the beach, and be outdoors.

 

Interested in joining WFY in one of our departments? Please email your resumes careers@cpa-wfy.com or go to our Careers page.

 

gifting

Why Gifting During an Economic Downturn May Be Right for You

Janelle Tokunaga, CPA, MST

Wright Ford Young & Co., CPAs

 

While it may seem like there has been a shortage of good news lately, we wanted to bring your attention to a few bright spots that have come about during our current economic downturn.  With the extra time you have at  sheltering in place, it may be a good time to revisit your current estate and gift plan.

To recap: the 2020 Federal lifetime exemption is $11.58 million per person, including inflation, and the 2020 annual Federal gift exclusion is $15,000 per donee and donor.  The current economic market is showing decreased values in the public securities arena and lower overall real estate values in light of the COVID-19 environment.

The current lifetime exemption gives you the opportunity to make larger gifts of assets. But when combined with lower current asset values you can gift now with less exemption utilization, it leaves more exemption available for future gifts.  So, now, may be a good time to think about gifting those depressed value assets that are expected to increase considerably in the future. Then, when the markets eventually recovers and your gifted asset values increase, they will already be outside of your taxable estate.

If you aren’t ready to gift assets directly, setting up and transferring ownership of real estate and marketable securities into closely held entities (such as FLPs and LLCs) may be a good option as well.

We encourage you to use this unique time to reflect on your current estate plan. Considering whether gifting is something for you may benefit you and your loved ones now and in the future.  WFY advisors are available to discuss the tax benefits of gifting during our economic downturn and look forward to hearing from you. If you’d like to contact us, click here.

© Copyright 2020. All rights reserved.

coronavirus

Avoid Phishing in the Time of COVID-19

As the uncertainty of the coronavirus pandemic continues, scammers are using different ways to gather your information and use it for ransom.

Some websites are offering information on COVID-19 relief programs in exchange for signing up through them as a subscription or requesting a fee. With this, the websites hold your basic information ransom and could possibly cause you problems in the near future.

WFY wants to make sure there aren’t any more problems for our clients who are already going through an ambiguous period of time. Fraud will only increase as the coronavirus pandemic goes on. Therefore, we advise you to only work with sources you know are safe and whom you’ve worked with before. On our WFY website, we have provided a COVID-19 relief page with safe links that can help you with any questions on resource programs at https://www.cpa-wfy.com/staging.cpa-wfy.com/dev/covid-19-resources/

If you have any questions or concerns on a COVID-19 relief program, please contact your WFY tax advisor.

ante up for autism

WFY Sponsors TACA’s 13th Annual Ante Up for Autism Benefit Gala

WFY was proud to be a Full House Sponsor of TACA’s 13th Annual “Ante Up for Autism” benefit gala.

The Autism Community in Action’s (TACA) Orange County chapter held its 13th annual “Ante Up for Autism” fundraising gala on Saturday October 26, 2019 at the Waterfront Beach Resort in Huntington Beach. Wright Ford Young & Co. was proud to continue its long standing support of TACA through a program sponsorship of the very successful event. TACA is a national nonprofit 501(c)(3) organization founded in 2000 by Glen and Lisa Ackerman with the mission to provide education, support and hope to families living with autism. TACA is headquartered in Irvine, CA with staff and volunteers working across the country.

To learn more about TACA, visit www.tacanow.org

business owner summit

WFY Partner Kahni Bizub as Panelist at 2019 Business Owner Summit

On November 8th, WFY Senior Tax Partner, Kahni Bizub, will be one of the panelists for WealthWise Financial Services’s 2019 Business Owner Summit.

The 2019 Business Owner Summit is a day-long event which includes discussing topics such as scaling your business, income tax strategies, retirement plans strategies, and more. The keynote speakers are Jacob M. Gerber, an equity & multi-asset investment director, and E. Luke Farrell, a fixed income investment director.

Kahni Bizub’s specialty is tax planning and compliance services for closely-held and family-owned businesses and their key executives in the service, manufacturing, and distribution industries. She has served some of the same clients for her entire career and believes in building strong CPA-client relationships. Such a rapport allows her to best understand her clients’ needs and tailor services specific to each client. Kahni is also involved in multiple business organizations including Vistage, AICPA, and CalCPA.

If you’d like to learn more about the 2019 Business Owner Summit, click here.

law

CA Governor Signed Law to Conform to Federal Tax Law Changes

The California governor signed law AB 91, also known as the “Loophole Closure and Small Business and Working Families Tax Relief Act of 2019” which partially conforms to certain provisions of the Federal Tax Cuts and Jobs Act, some of the significant items are as follows:

  • Small business accounting method reform and simplification
    • Allow businesses with average gross receipts less than $25 million to adopt the cash method of accounting
  • Net operating losses
    • Only allow net operating loss carryforwards

The new California law does not conform to:

  • Opportunity zone gain deferrals and capital gain exclusions
  • Fringe benefit federal deduction limitations
    • Convenience of employer meals
    • Entertainment
    • Parking and transportation

Although the law goes into effect for many of the provisions starting in 2019, certain provisions can be elected to apply to 2018.

To discuss how best to apply these changes to your situation, please contact a WFY tax expert at (949) 910-2727 or info@cpa-wfy.com.

© Copyright 2019. All rights reserved.

WFY Tax Department is Hiring

Wright Ford Young & Co. is seeking qualified candidates to join our tax department team! We are looking for hard-working, dedicated people who are willing to learn and flourish in their careers.  Full-time positions are available for the following departments:

Tax Department

  • Tax Professional (at least 3 years of experience)

If you are interested and qualified for the position above, please email your resumes careers@cpa-wfy.com or go to our Careers page.

tax season CPA discussion

The Problems Faced Between You and Your Current CPA This Past Tax Season

Once the corporate, individual and foundation tax reporting season is complete, there’s always an opportunity to evaluate and reassess the taxpayer’s level of satisfaction with their CPA relationship. Lack of communication, unwanted tax return extensions, incorrectly prepared Schedule K-1’s, and inability to accurately apply the qualified TCJA reform benefits  are just a few of the many frustrations that may have been experienced this past tax season.

Situations can arise in a taxpayer-CPA relationship which makes a taxpayer to question whether or not their current accounting firm is the right fit for them.  Small to mid sized closely held companies and family business owners may feel as though they have outgrown their small practice CPA or might feel under served by their larger accounting firm.  Some of the common situations where Wright Ford Young is referred into a new client relationship have been:

  • Delayed responses from their current CPA or lack of follow up communication that caused their tax returns to be unnecessarily extended.
  • Excessive turnover of accounting firm staff that caused the need for re-training and more work to be completed by company employees.
  • Need for new growth capital, loan or line of credit that requires a company’s financial statements to be audited, reviewed or compiled for the first time.
  • When a company’s employee benefit plan exceeds 100 participants for the first time, thus requiring a qualified ERISA auditor to audit the plan (i.e. 401(k)).
  • When a business owner considers a liquidity event, yet doesn’t want to fully exit the business, the consideration of structuring a tax-friendly ESOP is warranted.
  • The need for a family business owner to take advantage of the new tax strategies relating to personal estate and trust planning.
  • Anytime a company financial leader or family business owner no longer sees a true correlation between the accounting fee they pay and the value of service they receive.

If you are a small to mid-sized company or family business owner who is dissatisfied with your current accounting firm, please contact Wright Ford Young to schedule a no-obligation conversation with one of our audit, tax, or estates and trusts planning specialists.

Spend some time getting to know us and you’ll see how you can achieve compliance without feeling like a number in a “check the box” environment.

Learn how a proactive year-round tax strategy can serve as a valuable improvement vehicle to your profitability, not just a tax time expense.

Understand why estate planning is critical to maximizing your wealth preservation while you are still able to fully enjoy life with your family, not after.

See how our partners and staff are hands-on and better equipped to respond to individual requests from all our clients and not shielded with layers of staff, and realize a true correlation between the fee you pay and the value of service you actually receive.