12.23 2020

Financial Relief Before Year is Over

 

 

This year is end in a week. A spike in COVID-29 cases and related restrictions and shutdown, more people have been laid off and millions of people have received jobless help and benefit.

 

 

Don’t miss out!!!

Before 2020 is over, we still have time to gain some financial relief to help reduce the effects of the pandemic.

Paid sick leave

Fully refundable tax credits are available, as part of the Families First Coronavirus Response Act.

  • Up to $511 per day, or
  • $200 per day if caring for a family member or children if school is closed.

 

Paid family leave

One provision of FFCRA is fully refundable tax credits equal to two-thirds of the employee’s regular pay.

  •  Up to $200 per day, for an employee to care for a child due to school or place of care closure.

 

 

Employee Retention Credit

As part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, provides a fully refundable credit that is 50% of qualified wages.

  • $10,000, for a maximum credit per employee of $5,000 paid from March 13 – Dec. 31, 2020.

 

Important notes about COVID-19 tax credits:

  • For businesses to receive the credits, wages paid must occur by Dec. 31, 2020 or earlier.
  • If a Paycheck Protection Program loan was taken, the employer would not be eligible for the Employee Retention Credit.
  • Employers who choose to file one or more Forms 7200 to request an advance payment of the tax credits, the last day to file is either Feb.1, 2021, or the date employer’s Forms 941 are filed for forth quarter 2020, whichever is earlier. Any Forms 7200 received after that date will be rejected by the IRS

 

 

12.18 2020

Fill out your PPP Forgiveness Application Form


SBA released the official form to fill out for applying forgiveness on PPP Loan. Now that lenders are opening up for forgiveness applications. It is time to start prepare the documents need to qualify for full foreignness.

There are some documents and information requirements are universal to prove if you used the PPP Loan to cover any of following.

– Payroll costs

To prove payroll costs, you need to prepare:

  • Payroll service reports documenting wages and salaries paid to employees
  • Federal payroll tax filing (IRS Form 941 / 943)
  • State quarterly Payroll, Income, and Unemployment insurance reports
  • Receipts* for employee contributions to employee benefits
  • Receipts* for any retirement plan contributions

– Owner compensation

To prove owner compensation payments, you need t prepare:

  • 2019 Schedule C (or January to February 2020) for Sole Proprietorships
  • 2019 Form 1099-MISC (or January to February 2020) for Independent Contractors
  • 2019 Schedule K-1 (or January to February 2020) for Partnerships
  • Receipts for compensation payment

If there is more than one individual included, provide a separate document that lists the names and payments to each owner.

– Mortgage interest payments

        To prove mortgage interest payments, you need to prepare:

  • Mortgage amortization schedule or mortgage account statements
  • Receipts or cleared checks 

– Rent/ Lease payments

        To provide rent/ lease payments, you need to prepare:

  • Current Lease agreement and receipts or cleared checks 
  • Lender monthly account statements

– Utilities payments

        To prove utilities payments, you need to prepare:

  • Monthly utilities statements or involves
  • Receipts, cleared checks, or account statements

*Payment receipts, cleared checks, or account statements documenting the amount that the Borrower included in the forgiveness

What is next?

Once you have prepared all documentations, it is time to fill out the application form and upload supplemental documents into your portal.

 

Accounting Tips: Educate Your Employees

Why is it important to have strong internal control within an organization?

        A control environment is made up of a compilation of an entity’s organizational structures, policies, standards, and processes that maintain control across the organization. Having effective control environments with adequate internal control is essential for businesses to reduce the risk of asset loss and ensure reasonable assurance for stakeholders and businesses. Moreover, implementing a strong internal control, businesses establish solid protocols and procedures for their employees and partners. It allows businesses to prevent fraud and theft by separation of duties and organization of financial and management information.

Here are some best practices that should mitigate issues from happening in your business.

  • Segregation of Duties
  • Physical Controls
  • IT Controls
  • Accounting Standards and Policies 
  • Ethical Learnings

We strongly recommend to educate and train your employees for prevention of fraud as well as errors and mistakes.

Holiday Office Hours

 

The team at EJK Accounting & Tax Service wishes you peace, joy and prosperity throughout the coming year. Thank you for you continued support and partnership. We look forward to working with you in the years to come.

Reminder of Holiday Office Hours

As a reminder for all of our clients and teams, EJK Accounting & Tax Service will be closed from Thursday, December 24 to Saturday, January 3 for the holidays. We will open and back regular hours from 9 am to 5 pm on Monday,January 4. If you need to contact our team on the holidays, please reach out us by emailing [email protected] We appreciate your support and wish you the happiest of holiday!

 

 

11.24 2020

International Examiner

 

Community Voice Awards

 

International Examiner is the oldest and largest nonprofit, pan- Asian Pacific American publication in the Northwest. IE just celebrate their annual Community Voice Awards (CVA Benefit Dinner) this year online on Oct 29, Nov 5, and Nov 12. EJK is one of the sponsors to celebrate IE’s work.

For over 46 years, IE has been working on creating multi-media information, educational, arts, and cultures platform.

For more information, please check out IE’s website to learn more and get involved.