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The Thomas Howell Ferguson Blog

Spouse-run businesses face special tax issues

The partnership issue An unincorporated business with your spouse is classified as a partnership for federal income tax purposes, unless you can avoid that treatment. Otherwise, you must file an annual partnership return, on Form 1065. In addition, you and your spouse must be issued separate Schedule K-1s, which allocate the partnership’s taxable income, deductions […]

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4 Ways Corporate Business Owners Can Help Ensure their Compensation is “Reasonable”

If you’re an incorporated business owner, you know there’s a tax advantage to taking money out of a C corporation as compensation rather than as dividends. The reason is that a corporation can deduct the salaries and bonuses it pays executives, not dividend payments. Therefore, if funds are paid as dividends, they’re taxed twice, once […]

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2023 Q4 tax calendar: Key deadlines for businesses and other employers

Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2023. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. Note: […]

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Thomas Howell Ferguson P.A. CPAs recognizes several team members with promotions and position changes.

Thomas Howell Ferguson P.A. CPAs (THF or “the Firm”), recognizes several team members with promotions and position changes. Each year, Shareholders recognize team members who have demonstrated their ability to handle additional technical and review requirements associated with their positions. Please join us in recognizing the following individuals on their promotions and position changes within […]

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The tax advantages of hiring your child this summer

There are tax advantages of hiring your child(ren) for work during the summer. Learn how! Summer is around the corner, so you may be thinking about hiring young people at your small business. At the same time, you may have children looking to earn extra spending money. You can save family income and payroll taxes […]

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Many tax limits affecting businesses have increased for 2023

An array of tax-related limits that affect businesses are indexed annually, and due to high inflation, many have increased more than usual for 2023. Here are some that may be important to you and your business. Social Security tax The amount of employees’ earnings that are subject to Social Security tax is capped for 2023 […]

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Employers, be wary of ERC claims that are too good to be true

The Employee Retention Credit (ERC) was a valuable tax credit that helped employers that kept workers on staff during the height of the COVID-19 pandemic. While the credit is no longer available, eligible employers that haven’t yet claimed it might still be able to do so by filing amended payroll returns for tax years 2020 […]

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2023 Limits for businesses that have HSAs — or want to establish them

No one needs to remind business owners that the cost of employee health care benefits keeps going up. One way to provide some of these benefits is through an employer-sponsored Health Savings Account (HSA). For eligible individuals, an HSA offers a tax-advantaged way to set aside funds (or have their employers do so) to meet […]

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FINREP Texas Kicks Off the Inaugural Conference in 2022! (Part Two)

November 18, 2022 – Austin, Texas – Noelle Codispoti from The National Alliance for Insurance Education & Research discussed the opportunities for recruiting and retaining the next generation of professionals in the insurance industry.  She focused on three things that team members need: She discussed the importance of communication to the employees on the plan […]

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TDEM Division Chief Kicks Off the Inaugural FINREP Texas Forum in 2022! 

November 17, 2022 – Austin, Texas – The FINREP Texas Forum kicked off its inaugural conference with approximately 40 people from the insurance industry in Texas. The opening session set the stage for goals for the conference:  Education and Collaboration.  Texas Division of Emergency Management (TDEM) Division Chief, Joshua Bryant, updated the attendees with facts […]

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Brandon Mott, CPA and Ben A. “Steve” Stevens III, CPA are admitted to the Shareholder group at Thomas Howell Ferguson P.A. CPAs

Thomas Howell Ferguson P.A. CPAs (THF), a professional accounting, assurance, governmental consulting, and tax services firm headquartered in Tallahassee, Florida admits Brandon Mott, CPA and Ben A. “Steve” Stevens III, CPA to the Shareholder group. “Brandon started his career with THF. We were the first CPA firm that he worked with, and he worked through […]

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Recap: Taking a look at the big picture: Where do we go from here? A presentation delivered by Charles Nyce, Ph.D.

During the FINREP Florida Forum in 2022, hosts, Thomas Howell Ferguson P.A. CPAs (THF), and the Florida State University College of Business, the Dr. William T. Hold/The National Alliance Program in Risk Management provided participants the opportunity to hear from experts within the Florida insurance industry. Charles Nyce, Ph.D., a professor within FSU’s Center for […]

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Is Your Corporation Eligible For The Dividends-Received Deduction?

There’s a valuable tax deduction available to a C corporation when it receives dividends. The “dividends-received deduction” has a design to reduce or eliminate an extra level of tax on dividends received by a corporation. As a result, a corporation will typically receive taxation at a lower rate on dividends than on capital gains. Ordinarily, […]

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Help When Needed: Apply The Research Credit Against Payroll Taxes

Here’s an interesting option if your small company or start-up business is planning to claim the research tax credit. You can elect to apply all or some of any research tax credits that you earn against your payroll taxes instead of your income tax. This payroll tax election may influence some businesses to undertake or […]

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What Costs Are Eligible for Loan Forgiveness Through the Payroll Protection Program (PPP)?

Borrowers can be eligible for loan forgiveness for eligible payroll costs and eligible nonpayroll costs through the Payroll Protection Program (PPP). Borrowers are generally eligible for forgiveness for the payroll costs paid and payroll costs incurred during the eight week (56-day) covered period.  Payroll costs are considered paid on the day that paychecks are distributed, […]

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Paycheck Protection Program (PPP) – Payroll Costs Q&A

Additional answers have been posted by the SBA pertaining to the Payroll Protection Program (PPP) payroll costs.  Here is a sample of questions and answers that have been posted. Do PPP loans cover paid sick leave under payroll costs? What period of time should borrowers use to determine their number of employees and payroll costs […]

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Senator Marco Rubio Discusses PPP Loan Forgiveness with CPAs

Today, United States Senator Marco Rubio (R-FL) held a town hall on the Paycheck Protection Program (PPP) loan forgiveness process. The town hall was held with the Florida Institute of Certified Public Accounts’ (FICPA) leadership and board.  During the town hall, the Senator discussed specific federal responses to the ongoing COVID-19 pandemic. The topic included details […]

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Payroll Protection Program (PPP) – Deductible Expenses – Loan Forgiveness

Business owners are wondering if their Paycheck Protection Program (PPP) loan will affect their deductions when they file their tax returns and what portions of the loan will be deductible.  Here is an update from our COVID-19 team leaders on this issue. Late yesterday evening, the IRS released guidance regarding the deductibility of certain expenses businesses […]

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How Does Gross Income Affect Expenses Forgiven Under the PPP?

How does gross income affect expenses that can be forgiven under the Payroll Protection Program (PPP)? Under the Cares Act, a recipient of a covered loan can receive forgiveness on the loan (covered loan forgiveness) in an amount equal to the sum of payments made for the following expenses during the 8-week “covered period” beginning […]

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What is the Status of My Stimulus Check from the IRS?

Are you trying to check the status of your stimulus check from the IRS?  Here is a way that you can check on the status of your Economic Impact Payment. This link will give you information about: Your payment status Your payment type Whether the IRS needs more information from you, including bank account information […]

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CARES Act – Employers Can Claim an Employee Retention Tax Credit

Were you able to receive relief from the small business loans offered through the CARES Act? If the answer is no, you may be able to claim an Employee Retention Tax Credit! The CARES Act supports certain employers that operate a business during 2020 and retain their employees with an employee retention tax credit, despite […]

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Will my business be audited if I take the Paycheck Protection Program (PPP) loan?

Will there be an audit of my business if I take the Paycheck Protection Program (PPP) loan? Business owners are wondering if their companies will be audited if they take the Paycheck Protection Program (PPP) loan. The Treasury Secretary, Steven Mnuchin, said that the government will perform a full audit on any company taking out […]

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Paycheck Protection Program (PPP) – Payroll Costs

While there is a lot of speculation surrounding payroll costs as they pertain to the Paycheck Protection Program (PPP), below are answers to questions that we have at this time.  The most important thing to remember if you apply for this program is to document, document, document. What qualifies as “payroll costs” under the Payment […]

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Q&A on the CARES Act and Paycheck Protection Program (PPP)

In partnership with the Greater Tallahassee Chamber of Commerce, THF CPAs, Canita Gunter Peterson and Andrea Medley, held a webinar to discuss relevant issues pertaining to the CARES Act and Paycheck Protection Program (PPP) and provided a Q&A session.  You can watch the video above or read the transcription below.   In late March, the […]

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Paycheck Protection Program (PPP) Q&A

The U.S. Department of the Treasury has released an additional Q&A update of Frequently Asked Questions surrounding the Paycheck Protection Program (PPP).  A few questions asked in the FAQ update include: Are small business concerns (as defined in section 3 of the Small Business Act, 15 U.S.C. 632) required to have 500 or fewer employees […]

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Senate Votes to Push Additional Money to Paycheck Protection Program (PPP)

On Tuesday afternoon, the Senate agreed on a $484 billion Coronavirus relief package for small businesses, hospitals, and testing.  The House could approve the bill as early as Thursday. What does this deal include? $310 billion total for the Paycheck Protection Program (PPP), with $250 billion unrestricted and $60 billion set aside for smaller institutions. […]

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Senator Rick Scott Meets with CPAs to Focus on PPP Loans

United States Senator Rick Scott (R-FL) participated in a virtual town hall with the Florida Institute of Certified Public Accountants’ (FICPA) leadership and board members, including THF Shareholder and current FICPA Board member, Julian Dozier, on April 21, 2020. Also participating in the call was THF Director, Steve Stevens, former President of the FICPA’s Board. Topics included: […]

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Will there be additional funding for the Paycheck Protection Program (PPP)?

Will there be additional funding for the Paycheck Protection Program (PPP)? Members of the Senate began nearing a deal on Sunday that would bring an additional $370 billion into loan programs for small businesses.  Talks were sparked after the initial $349 billion ran out of money on Thursday. Of this amount, $310 billion will be […]

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How have the Paycheck Protection Program (PPP) funds been spent so far?

Are you interested in learning more about how the Paycheck Protection Program (PPP) loans have been spent so far?  You can check for updates on the SBA site here. How much of the Paycheck Protection Program (PPP) loans have been approved so far? As of April 16, 2020, the loan count was 1,661,367 with net […]

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Paycheck Protection Program (PPP) Lender Allowed to Apply for a PPP Loan?

Unlike other SBA loan programs, the financial terms for Paycheck Protection Program (PPP) loans are uniform for all borrowers.  The standard underwriting process does not apply because no creditworthiness assessment is required for PPP loans. Consequently, there is no meaningful risk of underwriting bias or below-market rates and terms.  It has also been recognized that […]

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Paycheck Protection Program (PPP) – Documentation for Loan Forgiveness

What documents do I need to provide for loan forgiveness for the Paycheck Protection Program (PPP)? If you have employees, you should submit Form 941 and state quarterly wage unemployment insurance tax reporting forms, or your equivalent payroll processor records that best correspond to the covered period.  This should also include evidence of any retirement […]

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How Much of the Paycheck Protection Program (PPP) Loan Will Be Eligible for Forgiveness?

How Much of the Paycheck Protection Program (PPP) Loan Will Be Eligible for Forgiveness? The amount of the Paycheck Protection Program (PPP) loan forgiveness can be up to the full principle amount of the loan, plus any accrued interest.  The actual amount of loan forgiveness will depend, in part, on the total amount spent over […]

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How Can PPP Loans Be Used By Individuals With Income From Self-Employment Who File a 2019 Form 1040, Schedule C?

The proceeds of a PPP loan are to be used for the following. Owner compensation replacement, calculated based on 2019 net profit. Employee payroll costs (as defined in the First PPP Interim Final Rule) for employees whose principal place of residence is in the United States, if you have employees. Mortgage interest payments (but not […]

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Paycheck Protection Program (PPP) – How do I calculate the maximum amount I can borrow?

Paycheck Protection Program (PPP) – How do I calculate the maximum amount I can borrow? How you calculate your maximum loan amount depends upon whether or not you employ other individuals.  If you have no employees, the following methodology should be used to calculate your maximum loan amount: Step 1: Find your 2019 IRS Form […]

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Am I Eligible for the PPP If I Have Income From Self-Employment and File a Form 1040, Schedule C?

Am I eligible for the Paycheck Protection Program (PPP) loan if I have income from self-employment and file a Form 1040, Schedule C? You are eligible for the Paycheck Protection Program (PPP) loan if: You were in operation on February 15, 2020; You are an individual with self-employment income (such as an independent contractor or […]

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Tax Deadline Extension to Cover Individuals, Trusts, Estates, and Corporations

Has the tax deadline been extended to cover individuals, trusts, estates, and corporations? To help taxpayers, the Department of Treasury and the Internal Revenue Service announced that Notice 2020-23 extends additional key tax deadlines for individuals and businesses. Last month, the IRS announced that taxpayers generally have until July 15, 2020, to file and pay […]

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Paycheck Protection Program (PPP) Q&A

Information about the Paycheck Protection Program (PPP) is changing rapidly.  Because it is changing so quickly, we want to remind you of the importance of checking your sources.  For this reason, we are providing the link to a great resource from the Small Business Administration (SBA), their FAQ page.  You can find their Paycheck Protection […]

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What is the Main Street Lending Program from the Federal Reserve?

What is the Main Street Lending Program from the Federal Reserve? The Federal Reserve has taken additional actions to provide up to $2.3 trillion in loans to support the economy. This funding will assist households and employers of all sizes and bolster the ability of state and local governments to deliver critical services during the […]

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Paycheck Protection Program (PPP), Can the Loan Be Forgiven?

Can my Paycheck Protection Program (PPP) loan be forgiven in whole or in part? Can my Paycheck Protection Program (PPP) loan be forgiven? Yes. The amount of the Paycheck Protection Program (PPP) loan forgiveness can be up to the full principal amount of the loan and any accrued interest. That is, the borrower will not […]

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Recommendations for Paycheck Protection Program (PPP) Application Documents

AICPA Recommendations for Paycheck Protection Program (PPP) Application Documents The American Institute of Certified Public Accountants (AICPA) is the world’s largest member association representing the accounting profession.  As members, we closely follow their guidance. The AICPA-led Coalition, and other key stakeholders – collectively representing 44K CPA firms, 2.5M small businesses and 30M employees – have […]

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