The IRS is making changes to 1099 reporting in 2020. Non-employee Compensation is no longer recorded on the form 1099 MISC. File form 1099-NEC for each person you have paid at least $600 in: Services performed by someone who is not your employee The 1099-NEC form is due in the mail by January 31st, 2020 […]
Paycheck Protection Program Update
Individual IRA Contributions (Traditional or ROTH)
If you and/or your spouse have taxable compensation (earnings subject to FICA and Medicare tax), you may be able to contribute to an Individual Retirement Account. The maximum Traditional IRA or ROTH IRA contribution for both 2020 and 2021 are $6,000 if under the age of 50 and $7,000 if age 50 or older as […]
2021 HSA Contributions
Health Savings Account (HSA) contribution limitations for 2021 are listed below. Contributions to a HSA are tax deductible or pre-tax as a payroll deduction. Funds from an HAS account can be used to offset deductibles, copays, and other qualified medical expenses. Excess contributions are not deductible and are subject to penalty unless the excess contributions […]
2020 Standard Mileage Rates
Beginning on January 1, 2020, the standard mileage rates for the use of cars (also vans, pickups or panel trucks) will be: 5 cents per mile for business miles driven. 17 cents per mile driven for medical or moving purposes. 14 cents per mile driven in service of charitable organizations. This rate is set by […]
K-12 Education Subtraction and K-12 Education Credit
Minnesota has both the K-12 Education Subtraction and the K-12 Education Credit, which can lower your tax payment or increase your tax refund. To be eligible, you must save receipts or invoices as documentation. Expenses that qualify: School supplies – excluding non-educational items i.e. backpacks locker organizers Private school tuition – excluding uniforms, except required […]
Increase in Minimum Wages
As of January 1, 2021, the Minnesota minimum wage will increase: For large employers – eight cent increase from $10.00 to $10.08 For small employers – six cent increase from $8.15 to $8.21 Definitions: Large employers – businesses with annual gross revenues of $500,000 or more ($10.08) Small employers – businesses with annual gross revenues […]
Paycheck Protection Program Forgiveness Extension
The U.S. Senate passed the House version of Paycheck Protection Program (PPP), which extended how long small businesses have to spend the funds. The extension was three times the amount previously stated, changing the 8 week period to a 24 week period to spend the amount provided to the small business through PPP, with the […]
Payroll Protection Program Loan Forgiveness
On May 15th, 2020, the Small Business Administration, in consultation with the U.S Department of Treasury, released information regarding the forgiveness of the Paycheck Protection Program (PPP). Which includes an application and detailed instructions. The following information is to guide small business along with non-profits in Minnesota to assist in their PPP loan forgiveness. […]
Payroll Protection Program
The Small Business Administration’s Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. Businesses can apply thru their existing SBA lender. Consult with your local lender as to whether they are participating in the program. All loan terms will be the same […]