Joy McAdoo by Joy Mcadoo, CPA

Relief for your Business

It’s hard to keep track of the many pandemic-relief programs. There’s the Paycheck Protection Program, the Employee Retention Credit, and the Families First Coronavirus Response Act credits, to name a few. Knowing what’s taxable and not taxable, as well as how to report it on your financial statements, can be even more challenging.

With year-end tax planning and financial reporting coming up, it’s important to get up to speed. Here’s what you should know about 2021 reporting for Generally Accepted Accounting Principles (GAAP) and tax—both federal and Minnesota.

Paycheck Protection Program (PPP) Loan Forgiveness

Employee Retention Credit (ERC)

Families First Coronavirus Response Act (FFCRA) credits (sick pay for employees who are unable to work due to COVID-related impacts)

Other Grant Income (e.g., EIDL advances, municipal grants such as Minnesota Main Street COVID Relief Grants)

 Cross Your T’s and Dot Your I’s

It’s important to understand how these tax and reporting requirements will impact your business before the year-end crunch. And don’t forget to evaluate tax reporting rules in other states if needed. If you’d like assistance sorting out these details and more, JAK is here to help. We’ll work with you to make sure your tax and GAAP reporting are done right and on time. Don’t wait until the last minute. Contact us today!