529 Distributions & College Refunds

529 Distributions & College Refunds

Important to remember as we try to get our college students back to school:  Distributions from 529 plans must be used to pay qualifying expenses incurred during the tax year.

If you receive a refund of tuition, fees, or room and board paid from 529 plan funds, put that money back into the 529 plan within 60 days.

See this article for more specifics.

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Small Business Owners in Columbus & Franklin County:  There is Still Time to Apply for COVID-19 Recovery Grants!

Small Business Owners in Columbus & Franklin County: There is Still Time to Apply for COVID-19 Recovery Grants!

More than half of the $10.5 million of the COVID-19 Small Business Response and Recovery Fund is still available to help small (fewer than 25 employees) minority- or woman-owned businesses, according to BizJournals.com. These funds can be used to maintain jobs and operations, purchase personal protective equipment and provide low-interest loans for expansion. The new deadline to apply is September 11, 2020.

Click here for more information or to apply.

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Updates on the PPP Forgiveness Process

Updates on the PPP Forgiveness Process

Banks are beginning to offer portals for businesses to begin the PPP forgiveness process. We strongly encourage our clients to continue to work closely with their bank’s forgiveness process. If you find you need accounting assistance at any point during the process, please feel free to reach out to us.

Thanks to our friends at GBQ for providing a nice summary of the US Treasury Department’s release of FAQs from 8/4/20. We want to point out these top three clarifications for use of PPP funds:

Business interest for real estate loans or equipment (fixed asset) loans can be paid with PPP funds. […] Read more

Major Changes to Retirement Plans Due to COVID-19

Major Changes to Retirement Plans Due to COVID-19

According to the IRS, qualified individuals affected by COVID-19 may be able to withdraw up to $100,000 from their eligible retirement plans, including IRAs, between January 1 and December 30, 2020.

These coronavirus-related distributions aren’t subject to the 10% additional tax that generally applies to distributions made before reaching age 59 and a half, but they are still subject to regular tax. Taxpayers can include coronavirus-related distributions as income on tax returns over a three-year period. They must repay the distribution to a plan or IRA within three years.
Some plans may have relaxed rules on plan loan amounts and repayment terms. […] Read more

Ohio Offers Micro-Enterprise Grant Program for Minority- & Women-Owned Businesses

Ohio Offers Micro-Enterprise Grant Program for Minority- & Women-Owned Businesses

Ohio’s Office of Small Business Relief recently announced a micro-enterprise grant program benefiting many of Ohio’s small, minority- and women-owned businesses, which have been hard hit by the COVID-19 pandemic. The Ohio Minority Micro-Enterprise Grant Program provides $10,000 in funding to help these companies through the current crisis and set them up for the future.

To be eligible, businesses must have been certified as a Minority Business Enterprise or woman-owned EDGE-certified business as of Feb. 29, 2020; have 10 or fewer employees and up to $500,000 in annual revenue; and have not received funding under the federal CARES Act.

To qualify, businesses […] Read more

City Fund Offers Relief For Local Small Business Owners

City Fund Offers Relief For Local Small Business Owners

The City of Columbus is devoting $5.25 million of the $157 million Columbus received from the Coronavirus Aid, Relief, and Economic Security (CARES) Act to the business relief effort, calling it the Columbus COVID-19 Small Business Response and Recovery Fund.

The fund helps businesses with fewer than 25 employees in three ways:

$3.25 million for “recovery grants” of up to $10,000 for businesses in low- to moderate-income areas to help with expenses and to retain employees during the pandemic;
$1 million in low-interest “pivot loans” of up to $20,000 for businesses in low- to moderate-income areas that can be used to retain or […] Read more

Now That Your Business Is Opening Back Up, What Employee Concerns Will You Face?

Now That Your Business Is Opening Back Up, What Employee Concerns Will You Face?

We are always here to address the accounting needs of our business clients, but we are also aware that now, more than ever, businesses are facing some new HR concerns. Business owners have new responsibilities, designed to keep employees and customers safe. Also some employers who are ready to open their doors are finding they have employees who do not want to return to work. Click these links to find insights from Sharon Delay at GO-HR for employers who are dealing with those issues.

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Receive an Economic Impact Payment in Error?

Receive an Economic Impact Payment in Error?

If you received an Economic Impact Payment (aka: federal stimulus check) in error, you should return the payment as described below:

If the payment was a paper check:

Write “Void” in the endorsement section on the back of the check.
Mail the voided Treasury check immediately to the appropriate IRS location listed below.
Don’t staple, bend, or paper clip the check.
Include a note stating the reason for returning the check.

If the payment was a paper check and you have cashed it, or if the payment was a direct deposit:

Submit a personal check, money order, etc. immediately to the appropriate IRS location listed below.
Write on […] Read more