Employee Retention Credit a Valuable Tool for Tampa and Miami Businesses

Employee Retention Credit

The Employee Retention Credit (ERC) is a tax credit that has been a valuable tool for businesses in Tampa and Miami during the COVID-19 pandemic. The ERC was introduced in the CARES Act (Coronavirus Aid, Relief, and Economic Security Act) in March 2020. It was designed to help businesses keep their employees on payroll during the pandemic. The credit has since been extended and expanded under subsequent legislation, making it a valuable tool for businesses seeking to retain their employees and navigate the challenges of the pandemic.

The ERC is available to eligible employers that experienced a significant decline in gross receipts or were fully or partially suspended due to government orders related to the COVID-19 pandemic. Eligible employers can claim a tax credit of up to 70% of the qualified wages paid to their employees, up to a maximum of $10,000 per employee per quarter.

Free up your time to focus on what matters.

Growing your business.

BOOK NOW

For businesses in Tampa and Miami, the ERC can be especially valuable. The pandemic has hit these two cities hard, with many businesses struggling to stay afloat. The ERC can help businesses in these cities to retain their employees and keep their doors open. The credit can provide much-needed relief to businesses that are facing financial challenges due to the pandemic.

To claim the ERC, eligible employers must file Form 941, Employer’s Quarterly Federal Tax Return, with the IRS. The credit is claimed on Line 11c of the form. Employers can also claim the credit in advance by reducing federal employment tax deposits.

Form 941

It’s important to note that there are some restrictions and limitations on the ERC. For example, employers that receive a Paycheck Protection Program (PPP) loan may not be eligible for the ERC for the same wages. However, businesses that have already received a PPP loan can still claim the ERC for wages that are not covered by the loan.

In Conclusion

The Employee Retention Credit is a valuable tool for businesses in Tampa and Miami that are struggling during the COVID-19 pandemic. Credit can help businesses to retain their employees and keep their doors open during this challenging time. If you are a business owner in Tampa or Miami, it’s worth exploring whether you are eligible for the ERC and how you can claim the credit. By taking advantage of this tax credit, you can help your business to weather the storm and emerge stronger on the other side.

Book A Consultation

Bookkeeping Services in St Petersburg, FL

Bookkeeping Services in ST Petersburg

Bookkeeping is an essential component of any successful business. It involves keeping track of a company’s financial transactions, including sales, expenses, and payments. Many businesses in St. Petersburg, Florida, rely on bookkeeping services to ensure their financial records are accurate and up-to-date. In this blog, we will discuss bookkeeping services in Saint Petersburg, Florida, and how they can benefit your business.

What is Bookkeeping?

Bookkeeping is the process of recording and maintaining a company’s financial transactions. It involves keeping track of income, expenses, invoices, and payments. Bookkeeping ensures that a company’s financial records are accurate and up-to-date, which is essential for making informed business decisions.

Why Your Business Needs Bookkeeping Services

Bookkeeping is a crucial component of any successful business, and it is essential to maintain accurate financial records. Here are some reasons why your business needs bookkeeping services:

Compliance:

Accurate financial records are necessary for tax purposes and to comply with state and federal regulations. Failure to comply with regulations can result in fines and penalties.

Decision-Making:

Accurate financial records are necessary for making informed business decisions. They provide insight into a company’s financial health, which is essential for long-term planning.

Financial Analysis:

Accurate financial records are necessary for financial analysis, such as identifying areas for cost savings and assessing the profitability of different products and services.

Bookkeeping Services in St Petersburg

Free up your time to focus on what matters.

Growing your business.

BOOK NOW

Benefits of Using Bookkeeping Services in St. Petersburg, FL

Bookkeeping services can provide many benefits to businesses in St. Petersburg, Florida. Here are some of the benefits of using bookkeeping services:

Saves Time:

Bookkeeping can be time-consuming, especially for small businesses that do not have a dedicated accounting department. Outsourcing bookkeeping services can save time and allow business owners to focus on other aspects of their business.

Increases Accuracy:

Bookkeeping services use advanced accounting software to ensure accurate financial records. This reduces the risk of errors and ensures that financial records are up-to-date.

Cost-Effect:

Outsourcing bookkeeping services can be cost-effective, especially for small businesses that do not have the budget to hire a full-time accountant. Bookkeeping services can be customized to fit the needs of the business and provide a cost-effective solution.

Professional Expertise:

Bookkeeping services provide access to professional expertise and knowledge of accounting best practices. This ensures that financial records are accurate and compliant with regulations.

In Conclusion

Bookkeeping services are essential for any business that wants to maintain accurate financial records and comply with state and federal regulations. In St. Petersburg, Florida, many businesses rely on bookkeeping services to manage their financial transactions and ensure compliance. By outsourcing bookkeeping services, businesses can save time, increase accuracy, and access professional expertise.

IRS Estate Tax Exemption Amount Goes Up for 2023

IRS Estate Tax Exemption

The IRS estate tax exemption will once more increase in 2023. Since the exemption is calculated based on the Consumer Price Index, impacted taxpayers shouldn’t assume that this will happen every year. The good news is that it still makes up a sizable amount of the opening chapter for virtually every high-income American.

2023 IRS Estate Tax Exemption

The federal estate tax is typically not applicable to an estate when the value of the estate is less than the exemption level. The exemption amount is greater than $12.92 million for the years 2019 through 2023 (and for married couples, the income beginning in 2022). The exemption for a couple is worth $25.84 million.

IRS Estate Tax Exemption Rate

After all, only a small percentage of Americans who pass away have a net worth of more than $12.92 million. However, not every estate with a net worth in the vicinity of that sum is hit with a tax bill that starts off at a really high rate. A 40% tax rate is applied to about half of the estate’s worth. The amount over $1 million that is subject to lower rates of tax ranges from 18% to 39%, as shown in the table below. On the first $1 million of the asset, this results in an overall tax of $345,800, which is only $54,200 less than the tax you would pay if the estate were taxed at a high rate. On the other hand, after you surpass the $1 million threshold, the remaining estate worth is likewise subject to a 40% tax rate.

RateTaxable Amount (Value of Estate Exceeding Exemption)
18%$0 to $10,000
20%$10,001 to $20,000
22%$20,001 to $40,000
24%$40,001 to $60,000
26%$60,001 to $80,000
28%$80,001 to $1,00,000
30%$1,00,001 to $1,50,000
32%$1,50,001 to $2,50,000
34%$2,50,001 to $5,00,000
36%$5,00,001 to $7,50,000
38%$7,50,001 to $1 Million
40%Over $1 Million

Historical IRS Estate Tax Exemption Amounts

IRS Estate Tax Exemption

The estate tax exemption has only increased over time since the basic estate tax was changed in 1976 (see chart below). The rise is typically minimal, such as when making a small adjustment for inflation. The exemption threshold has, however, occasionally risen. For instance, it increased from $675,000 in 2002 to $1,000,000 in 2011, from $1,000,000 to $5,000,000 in 2011, and from $5.49 million to $11.18 million in 2018.

PeriodExemption Amount
1977 (Quarters 1 and 2)$30,000
1977 (Quarters 3 and 4)$120,667
1978$134,000
1979$147,333
1980$161,563
1981$175,625
1982$225,000
1983$275,000
1984$325,000
1985$400,000
1986$500,000
1987 through 1997$600,000
1998$625,000
1999$650,000
2000 and 2001$675,000
2002 through 2010$1,000,000
2011$5,000,000
2012$5,120,000
2013$5,250,000
2014$5,340,000
2015$5,430,000
2016$5,450,000
2017$5,490,000
2018$11,180,000
2019$11,400,000
2020$11,580,000
2021$11,700,000
2022$12,060,000
2023$12,920,000

State Estate Taxes

Nonetheless, just because there is no federal estate tax does not imply you are completely exempt from paying any state estate taxes. There are estate taxes in eleven states and the District of Columbia, and the state exemption levels are sometimes substantially smaller than the federal estate tax exemption. For instance, in Massachusetts and Oregon, the threshold for a reduced-support exemption is merely $1 million.

Six other states, in addition to Maryland, have inheritance taxes, which are often covered by your own family members. You might leave your children and grandchildren with less money in their pockets than you had intended for since your estate isn’t worth millions of dollars.

If you think you may benefit from the expected increase in the lifetime IRS estate tax exemption amount, please contact us or schedule a consultation today.

Book A Consultation