Your McCarthy Update
Marty McCarthy, CPA, CCIFP
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Focused on You. Dedicated to Your Success.
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May 3, 2021
Accounting & Tax News
(Accounting Today) IRS ups tax credit amounts for inflation after American Rescue Plan. The IRS released Revenue Procedure 2021-23 which modifies and supersedes parts of the 2021 inflation adjustments in last year’s Rev. Proc. 2020-45, to reflect some of the changes in the American Rescue Plan Act of 2021, which Congress passed last month. The new IRS guidance not only modifies the inflation-adjusted amounts for the Child Tax Credit (CTC) and the Earned Income Tax Credit (EITC), but also the applicable percentage table for Premium Tax Credits under the Affordable Care Act. One caveat in the new revenue procedure with regard to investment income in terms of qualifying for the EITC. “For taxable years beginning in 2021, the EIC is not allowed if the aggregate amount of disqualified investment income exceeds $10,000,” said the IRS. Read more.
Business News
(NJBIA) What NJ employers need to know about COVID and worker’s compensation. When New Jersey was a national hotspot for COVID-19 last spring, 35% of all worker’s compensation claims in the state were related to COVID-19, according to insurance experts. Now many employers may be wondering how this will affect their future worker’s compensation insurance premiums. Listen to this webinar.
(NJBIA) U.S. consumer confidence rises sharply in April. The monthly Consumer Confidence Survey, conducted for The Conference Board by Nielsen, showed that the Consumer Confidence Index now stands at 121.7, up from 109.0 in March. The Present Situation Index—based on consumers’ assessment of current business and labor market conditions—soared from 110.1 to 139.6 and the Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions—rose moderately, from 108.3 last month to 109.8 in April. Read more.
Construction and Real Estate News
(Construction Demolition Recycling) Associated Builders and Contractors (ABC) sees positive employment signs. Most states are keeping contractors and their employees busy in spring of 2021. The construction sector employment “is holding its own,” although it is not back to pre-pandemic levels. In an analysis of United States Bureau of Labor Statistics data for March, ABC says the figures show on a year-over-year basis, not seasonally adjusted (NSA) construction unemployment rates rose nationally and in 33 states. Read more.
(Construction Dive) Road builders to benefit the most from an infrastructure deal, economist says. Road builders will be the biggest winners of any infrastructure spending bill passed this year by Congress, with contractors who work in the environmental public works space sharing in the spoils, too, according to a leading construction economist. Read more.
(Construction Dive) Amid delays and rising prices, contractors turn to tech to mitigate supply disruptions. Soaring material costs and supply chain woes are threatening a second half rebound. Construction pros are looking to technology-based strategies to cope. Learn more.
COVID-19 Related News
(Accounting Today) IRS ups tax credit amounts for inflation after American Rescue Plan. The IRS is increasing the inflation-adjusted amounts of the Child Tax Credit and Earned Income Tax Credit for this year in accordance with the latest coronavirus relief package. The IRS released Revenue Procedure 2021-23 to reflect some of the changes in the American Rescue Plan Act of 202. The new IRS guidance modifies the inflation-adjusted amounts for the CTC and the EITC, and the applicable percentage table for Premium Tax Credits under the Affordable Care Act. Learn more.
(Journal of Accountancy) SBA sets opening dates for Restaurant Revitalization Fund. Registration for the $28.6 billion program opened at 9 a.m. ET on April 30. The doors open for application submissions at noon ET on May 3. Discover what you need to do.
(Business.NJ.gov) PPE Access Program Deadline Extended to May 28th. There is still time for New Jersey-based businesses and organizations with 100 or fewer employees to apply for discounts of nearly 70% off purchases of personal protective equipment through the NJ Small and Micro Business PPE Access Program. Businesses that were approved previously do not need to reapply, but any discounts they have redeemed to date will be counted toward the program cap. Apply for discounts.
Economic News
(New York Times) G.D.P. growth accelerated in the first quarter. The Commerce Department reported Thursday that the economy expanded 1.6% in the first three months of 2021, compared with 1.1% in the final quarter last year. On an annualized basis, the first-quarter growth rate was 6.4%. G.D.P. is nearly back to pre-pandemic levels. Read more.
(NJBIA) Focus NJ's 2020 economic review details devastation of small businesses. Focus NJ released a review of New Jersey’s economy for 2020, detailing record high unemployment rates and unemployment claims, as well as a historic contraction in the state’s Gross Domestic Product (GDP), followed by a quick rebound. The first annual report, which will be followed by quarterly reviews, also analyzed the devastation of New Jersey small businesses, with more than 3 in 10 of them closing temporarily or permanently. Read more.
General News
(CNBC) Social Security’s cost-of-living adjustment is not keeping up with prices retirees pay. This year’s Social Security cost-of-living adjustment was 1.3%. In 2021, the estimated average monthly benefit increased by $20 per month which is not enough for some seniors to cover their expenses. Learn why.
(CNBC) Employers prepare to summon reluctant workers back to office. Vaccinated or not, more than half of employees said that, given the option, they would want to keep working from home even after the COVID crisis subsides, according to a survey by the Pew Research Center. Far fewer look forward to returning to the office full time. The majority, or 58%, of employees said they would look for a new position if they weren’t allowed to continue working remotely in their current position, according to a recent report by FlexJobs. And yet, in a survey of more than 350 CEOs and human resources and finance leaders, 70% said they plan to have employees back in the office by the fall of this year — if not sooner — according to a report by staffing firm LaSalle Network.
(CNBC) The new negotiation over job benefits and perks in post-COVID hybrid work. Data from a recent WeWork and Workplace Intelligence survey suggests that 75% of employees are willing to give up at least one benefit or perk for the freedom to choose their work environment, while 64% would pay up to $300 for access to an office space. Some benefits they are willing to forgo include biggies like health care coverage, cash bonuses, and paid time off, the survey found. Read 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).
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