annual list of accounting firms for the fourth consecutive year. McCarthy & Company, PC, is pleased to announce that the firm has been included on the Philadelphia Business Journal’s list of Accounting Firms. Published annually, this elite list includes some of the most prestigious firms in the Philadelphia region. This is the fourth consecutive year that McCarthy & Company has made the list. 

“We are honored to be recognized by the Philadelphia Business Journal,” shares Martin C. McCarthy, CPA, CCIFP, and managing partner of the firm. “Our footprint in Pennsylvania, New Jersey and New York is expanding to meet the ever-increasing needs of our clients. We are grateful to be experience growth despite the pandemic.” The firm has realized organic growth year over year largely due to its commitment to focus on its clients and to be dedicated to their success. McCarthy & Company was ranked 32. 

The Philadelphia Business Journal ranks accounting firms by revenue, number of full-time equivalent employees, number of certified public accountants and various other criteria. 

(AccountingWEB) Should you deduct state income or sales tax? Some taxpayers have the option of deducting either state and local income taxes on their 2020 return or sales taxes, but which is the right choice? It depends on their circumstances. Learn why.

(Journal of Accountancy) EBP audits: Document so your steps can be retraced. The hurried changes made to employee benefit plans because of the coronavirus pandemic make thorough documentation an important tool for EBP auditors in the current environment. Read more.

(NJBIA) NJ ranks no. 4 in nation in per capita taxes collected. Taxes collected in the District of Columbia ($11,311 per capita) surpass those of all 50 states, the foundation said. Among the states, New Jersey ranks No. 4 with a per capita tax collection of $7,423 behind North Dakota ($7,611), Connecticut ($8,494) and New York ($9,829). Read more.

(Tax Foundation) Reviewing the federal tax treatment of research & development expenses. Investment in research and development (R&D) is central for driving long-term technological change and innovation. The R&D tax credit and immediate expensing for R&D spending are two important ways the federal tax code provides incentives for R&D investment. Learn more.

(Construction Executive) ABC’s construction backlog slips in March; Contractor optimism continues to improve. Associated Builders and Contractors (ABC) has reported that its Construction Backlog Indicator fell to 7.8 months in March, according to an ABC member survey conducted from March 22 to April 5, a decrease of 0.4 months from both the February 2021 and March 2020 readings. Read more.

(Fortune) The price of lumber is up 193%—and about to spike even higher. Lumberyards and homebuilders alike have delayed buying lumber from sawmills in hopes the price of the sky-high commodity would finally come back down to earth. It has not budged, and now the buying rush is on ahead of spring and summer projects. Discover why.

(MarketWatch) New-home construction rebounds as America faces dire housing shortage. U.S. home builders started construction on homes at a seasonally adjusted annual rate of 1.74 million in March, representing a 19% jump from the previous month’s upwardly revised figure, the U.S. Census Bureau reported. Compared with March 2020, housing starts were up a notable 37%. Learn why.

(Accounting Today) IRS offers penalty relief on employment tax payments amid COVID-19. In Notice 2021-24, the IRS amplified prior guidance from 2020. The new notice provides relief for employers who are required to pay qualified sick leave wages and qualified family leave wages, along with qualified health plan expenses that can be allocated to those wages, as mandated by the Families First Coronavirus Response Act, which was amended by the COVID-related Tax Relief Act of 2020, along with the American Rescue Plan Act of 2021. The notice also offers relief for some employers for whom COBRA continuation coverage premiums were not paid by former employees who were eligible for assistance with coverage under the American Rescue Plan Act. The guidance also provides some relief for employers who suffered a full or partial closure order due to COVID-19 or who experienced a decline in business. Read more.

(Accounting Today) IRS to roll out expanded Child Tax Credit on July 1. Read more.

(Forbes) Everything we know about the new child tax credit so far. As with all new legislation, there are a lot of moving parts. From determining income requirements to who is a qualifying child, it is a dizzying array of details to determine which taxpayers will be allowed to take the credit. Learn more.

(Journal of Accountancy) IRS extends penalty relief for pandemic payroll credits. To continue to allow employers to take immediate advantage of various credits enacted in response to the COVID-19 pandemic, the IRS is permitting eligible employers who pay qualifying wages to retain an amount of the payroll taxes equal to the amount of qualifying wages that they paid, rather than deposit them with the IRS. (Notice 2021-24) amplifies guidance issued last year (Notice 2020-22) and provides for penalty relief under Sec. 6656 for an employer’s failure to timely deposit certain employment taxes with the IRS. Learn more.

Please visit our COVID-19 Resource Page for more alerts. Learn about our COVID-19 Recovery Services.

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.