Your McCarthy Update 

Marty McCarthy, CPA, CCIFP
Focused on You. Dedicated to Your Success.
May 24, 2021

COVID-19 Related News
(Accounting Today) IRS updates COBRA guidance for employers. Notice 2021-31 provides guidance for employers, plan administrators and health insurers regarding the new credit available to them for providing continuing health coverage to certain individuals under COBRA. The notice provides information regarding the calculation of the credit, eligibility, premium assistance period and other information to understand the credit. Read more.
 
(Journal of Accountancy) Restaurant Revitalization Fund (RRF) to stop accepting applications. The RRF will officially stop accepting applications today, Monday, May 24, at 8:00 PM ET. Learn why.
 
(Journal of Accountancy) IRS clarifies pandemic relief for dependent care assistance programs. Dependent care assistance program balances carried forward under temporary COVID-19 relief provisions retain their exclusion from participating employees’ gross income and wages. Read more. Read IRS Notice 2021-26.
 
(NJBIZ) Assembly approves tax breaks, $235M in grants for COVID-hit businesses. The NJ Assembly approved a $235 million relief package for COVID-hit businesses and tax breaks. Learn more.
 
(Philadelphia Business Journal) SBA denied your PPP loan forgiveness request? Here is what to do next. The SBA has made a total of 11.2 million PPP loans for about $788.1 billion across two rounds of funding. So far, it has forgiven 3.1 million loans with 182,000 under review. Learn why.

(SAGE) Return to Growth: Business outlook for 2021 and beyond. Sage commissioned a study of more than 1,000 CFOs and other top finance executives at U.S. based small and mid-sized companies. The survey focused on how the pandemic impacted business strategy, customer retention, employee recognition and community engagement. It also aimed to uncover the confidence and intentions business leaders have for the upcoming year. Read more and download the report.

(SBA) SBA Launches “Getting back on track: help Is here” webinar series to help small business owners & entrepreneurs. To join one of the regional programs register at Getting Back on Track: Help is Here!

Accounting & Tax News
(Journal of Accountancy) 2022 HSA, excepted benefit HRA amounts increase slightly. In Rev. Proc. 2021-25, the IRS provided 2022 inflation-adjusted amounts pertaining to health savings accounts (HSAs) and the maximum amount that may be made newly available for certain health reimbursement arrangements (HRAs). The annual limitation on deductions for an HSA with self-only coverage is $3,650, an increase of $50 over 2021; the corresponding amount for family coverage is $7,300, up $100 from 2021. An additional $1,000 annual contribution is allowed for individuals aged 55 or older before the end of the tax year.
 
The high-deductible health plan (HDHP) that must accompany an HSA also has inflation adjustments, for its minimum plan deductible amount and its maximum annual out-of-pocket limitation. The deductible for 2022 must be at least $1,400 for self-only and $2,800 for family coverage, both the same as for 2021. The out-of-pocket maximums are $7,050 for self-only coverage and $14,100 for family coverage, increases of $50 and $100, respectively, from 2021. Read more.
 
(Tax Foundation) How much does your state collect in property taxes per capita? On average, state and local governments collected $1,675 per capita in property taxes nationwide in FY 2018, but collections vary widely from state to state. The highest state and local property tax collections per capita are found in the District of Columbia ($3,740), followed by New Jersey ($3,378), New Hampshire ($3,362), Connecticut ($3,107), New York ($3,025), and Vermont ($2,738). The lowest collections per capita are found in Alabama ($598), Oklahoma ($771), Arkansas ($776), Tennessee ($799), and New Mexico ($832). Read more.
 
Business & Economic News
(Marcus & Millichap) Retail sales research brief: Consumers remain active; retail sales well above pre-recession levels. Download the report.
 
(Reuters) Analysis: How the post-pandemic labor crunch is curbing U.S. manufacturing. Discover why.
 
Construction & Real Estate News
(Construction Dive) Construction momentum at 12-year high, despite continued challenges. The uptick in the institutional sector, which includes healthcare, education, dormitories, recreation facilities and public buildings such as courts and prisons, seems to be driven by longer-term optimism about the country's overall progress against COVID-19. Learn why.
 
(Construction Executive) Monthly construction input prices rise 1.3% in April. According the Associated Builders and Contractors' (ABC) analysis of U.S. Bureau of Labor Statistics Producer Price Index data, nonresidential construction input prices increased 1.6% for the month. Construction input prices are 19.7% higher than a year ago, and nonresidential construction input prices expanded 19.2% over that span. All three energy subcategories have experienced significant year-over-year price increases. The price of crude petroleum rose 245.2%, while unprocessed energy materials and natural gas increased 117.7% and 114.6%, respectively. Softwood lumber prices have increased 121.1% over the past year. Read more.
 
(Construction Executive) ABC’s construction backlog inches up in April; contractor optimism slips. Associated Builders and Contractors (ABC) reported that its Construction Backlog Indicator rose to 7.9 months in April, according to an ABC member survey conducted April 20-May 5, 0.1 months higher than in March 2021 and April 2020. ABC’s Construction Confidence Index readings for sales and profit margins declined modestly in April, while confidence regarding staffing level expectations increased. Only 8.6% of respondents expected staffing to decrease. All three indices remain above the threshold of 50, indicating growth expectations over the next six months. Learn more.
 
(FOX News) Increased prices, labor shortage in housing market expected to continue. Watch the news clip.

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.

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).