March 2, 2021
McCarthy Thought Leadership
McCarthy & Company published the first issue of its quarterly magazine MCC Construction Zone. In it is proactive advice for construction and real estate professionals as well as firm news. Read the March 2021 issue.
Accounting and Tax News
(Tax Foundation) Does your state have an estate or inheritance tax? In addition to the federal estate tax, with a top rate of 40%, some states levy an additional estate or inheritance tax. Twelve states and the District of Columbia impose estate taxes and six impose inheritance taxes. Maryland is the only state to impose both. Learn more.
Business News
(Business Management Daily) Do you have to pay remote employees for time spent running errands? Working from home is great — you can run errands on a day that isn’t a Saturday, you can go to the dentist and have all day to recover, you can see your kids in the school play. But those situations can make timekeeping for nonexempt employees a nightmare. Learn why.
Construction and Real Estate News
(Construction Dive) How would a $15 minimum wage affect construction? An increase in the federal minimum wage would mean that construction employers in some states would have to pay more for some types of labor. Read more.
(GlobeST.com) Expect lumber prices to remain volatile. The lumber market faced issues with both supply and demand last year. Learn why.
(GlobeST.com) Several niches emerge as opportunity zone activity picks up. Many developers are breaking ground on vacant parcels, repurposing parking lots to higher uses, and refurbishing empty and abandoned structures. Read more.
(Financial Planning) IRS offers flexibility on carrying over FSA fund. Notice 2021-15 details the relief offered under the stimulus package passed by Congress in December, which included provisions allowing greater flexibility for employee benefit plans in the use of FSA and dependent care assistance funds. Learn more.
COVID-19 Related News
(MSN) Biden changes PPP loan rules to benefit the smallest small businesses. The President said that starting Wednesday, February 24, the U.S. Small Business Administration will create a 14-day window exclusively for businesses and non-profit organizations with less than 20 employees to apply for PPP loans. Read more.
(Philadelphia Business Journal) SBA rolls out PPP loan fixes after industry groups' outcry. The Small Business Administration has taken steps to improve its Paycheck Protection Program loan process after an outcry from industry groups over flaws in the program. Read more.
(Tax Foundation) Which States Are Taxing Forgiven PPP Loans? Congress chose to exempt forgiven PPP loans from federal income taxation. Many states, however, remain on track to tax them by either treating forgiven loans as taxable income, denying the deduction for expenses paid for using forgiven loans, or both. The map and table below show states’ tax treatment of forgiven PPP loans. Learn more.
Feel free to contact any member of our team at (610) 828-1900 (PA) or (732) 341-3893 (NJ) with questions. Rich Higgins, CPA, managing principal – New Jersey office can be contacted at Richard.Higgins@McCarthy.CPA. I can be reached at Marty.McCarthy@McCarthy.CPA As always, we are happy to help.
Stay safe,
Marty McCarthy, CPA, CCIFP
Managing Partner
McCarthy & Company
Disclaimer: This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).
