Accounting & Tax Services to fit your needs

Please call now to schedule your tax appointments for next year. Slots fill up quickly. We ask that you wear a mask inside our office. Wash your hands, avoid touching your eyes and nose, disinfect areas frequently, and maintain a safe distance away from others. If you are sick please stay home.

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                                                              Important Updates

• Our office hours are Monday thru Friday 9-5.  Please remember social distancing guidelines of maintaining a safe distance of six feet away from others, wear a face mask, wash your hands frequently and disinfect regularly. If you are not feeling well please stay home.
• PPP loan forgiveness applications will be coming due soon.  Call us to discuss what is needed to process the applications. 
• Payroll tax relief: The passage of the new stimulus bill has extended payroll tax relief until March 31, 2021.  Do you have employees affected by Covid and they are required to self isolate?  Tax credits are available to help with emergency leave sick and family pay.  These credits can be used now to offset payroll tax deposits. Call us if you need assistance.
• Applications for the second round of PPP loans starts January 12: The Consolidated Appropriations Act included $284 billion for a second round of the Paycheck Protection Program (PPP). If you wish to apply for a PPP loan, you must meet the following qualifications to be eligible:
  • Second time borrowers must have used their first loan in full.
  • You must demonstrate a 25% decline in any matching quarter between 2019 & 2020 OR a 25% or more reduction in annual revenues for 2020 compared to 2019.
  • Your business must have less than 300 employees.
  • PPP #2 will also apply to sole proprietors and independent contractors as well as individuals who own or operate their own business.

     If you meet the aforementioned qualifications, you can apply for an amount equal to:   

1. Lesser of 2.5 times your average monthly payroll or $2 million  -OR-​  Lesser of 3.5 times your average monthly payroll or $2 million if borrower has a NAICS code beginning with a 72 (hospitality & restaurants).
2. You can use the average monthly payroll for 2019 or 2020

    In order to apply for a second PPP loan, all of the following must be provided:

1. Completed form 2483-SD
2. 2020 quarterly financial statement and the same quarter period financial statement for 2019 showing a 25% reduction in revenue OR 2020 and 2019 federal tax return filing if choosing annual revenue reduction option.
3. Copy of 941's for all four quarters and the annual 940 for 2019 or 2020 that was used to determine payroll costs.

        Borrowers are still required to use at least 60% of the PPP #2 money they receive on payroll.                        Expenses are for the remaining 40% include rent & mortgage, utilities & supplier costs, operating                    costs including software, cloud computing, and accountng. ​If your property or your business was                    damaged during the initial shutdowns of Covid-19, you can now use PPP #2 money to pay for the                  repair of that property. Personal protective equipment (PPE) for your employees, staff, or for the office            are also expenses that are permitted under PPP #2.

• ​Employee Retention Credit for many businesses financially impacted by COVID-19: The stimulus package signed into law on Dec. 27 contains significant enhancements to the employee retention tax credit. For qualified wages paid after March 12, 2020, and before July 1, 2021. Effective Jan. 1, 2021, the credit amount is increased to 70% of qualified wages and includes the cost to continue providing health benefits. The credit cap is increased to $7,000 for each of the first two quarters of 2021 ($10,000 in qualified wages X 70% tax credit rate), so that the maximum credit for 2021 will be $14,000. This aggregate $14,000 per employee maximum credit for the first two quarters of 2021 is available even if the employer received the $5,000 maximum credit for wages paid to such employee in 2020. Business operations that are either fully or partially suspended by a COVID-19 lockdown order, or for a quarter in 2021, if gross receipts are less than 80% of gross receipts for the same quarter in 2019. A company with 500 or fewer employees will be eligible for the credit, even if employees are working. A company that receives a PPP loan can claim the employee retention tax credit as long as the wages were not paid with the proceeds of a PPP loan that have been forgiven. 
• On December 27, a relief package was passed that provides families with the help they need. Individuals will receive a $600 tax rebate and joint filers will receive $1,200, with the amount declining in phases for those making more than $75,000 and $150,000 respectively. There is also a $600 credit per child for working families. Social Security beneficiaries who are not typically required to file tax returns will automatically be deposited into their bank accounts. The IRS will use the information on the Form SSA-1099 and Form RRB-1099 to generate $600 Economic Impact Payments to Social Security recipients who did not file tax returns in 2018 or 2019. Recipients will receive these payments as a direct deposit or by paper check, just as they would normally receive their benefits.. For more information go to  www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know
• Grants available for businesses: Michigan Small Business Relief Initiative will utilize Federal funds to provide $10 million in grants to help businesses impacted by the COVID-19 virus. The application process is now closed. Grantees will be notified in early January 2021, and funds will be disbursed in mid-late January 2021. 
• ​Deferral of November Sales, Use and Withholding Tax Payment:  Business's affected by the recent pandemic order such as entertainment venues, recreational facilities and places of public amusement and food service establishments with indoor dining, with November sales, use and withholding tax payments can postpone filing and payment requirements until January 20, 2021. The state Treasury Department will automatically waive all penalties and interest. The waiver of penalty and interest only applies to non-accelerated sales, use, and withholding filers whose business is subject to the prohibition on gatherings under Section 3 of the MDHHS order. Accelerated sales, use or withholding tax filers should continue to file returns and remit any tax due as of the original due date.  For more information go to:www.michigan.gov/treasury/0,4679,7-121--546919--,00.html
• Payroll Tax Deferral repayment to begin:  Employers had the option to defer withholding and payment of the employee's portion of the Social Security tax if the employee's wages during the period of September 1, 2020 thru December 31, 2020. If employers have deferred withholding and payment of employee social security tax, employers must pay the employer and employee Social Security taxes on wages and compensation between April 30, 2021 and December 31, 2021 and should make arrangements to collect the total social security taxes from the employee. If deferred taxes are not paid interest, penalties, and additions to tax will begin to accrue on January 1, 2022.  
• Paycheck Protection Program (PPP) Loan Forgiveness: Recipients of the 2020 PPP loan may apply for loan forgiveness from their lender after the eight-week period following disbursement of their loan or by December 31, 2020 which ever is longer. Applicants have up to ten months to apply. The amount of loan forgiveness, if any, a PPP loan recipient may receive will depend on a variety of factors but will not exceed the loan principal amount plus accrued interest. Certain uses of the loan count towards how much is forgiven. Only loan proceeds spent on covered uses during the eight week period following disbursement are forgiven. Its important to know that the employees kept during this time will impact the amount forgiven.  For more information go to www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program#section-header-5
• New Form 1099 NEC for Self Employed Individuals: The due date for filing Form 1099 that includes nonemployee compensation (NEC) is January 31. Beginning with tax year 2020, use Form 1099-NEC to report nonemployee compensation. Use Form 1099-MISC for reporting other miscellaneous income. 
  Help for Renters and Landlords: The Eviction Diversion Program (EDP) is designed to keep Michigan residents who fell behind on their rent during COVID-19 in their homes. The program utilizes a special court process to get fast rental assistance for renters who have been impacted. Rental assistance in the amount of $50 million is available in the form of lump sum payments to landlords in exchange for allowing tenants to remain in their homes, forgiving late fees and up to 10% of amount due. For more information go to: www.michigan.gov/mshda/0,4641,7-141-5555-533463--,00.html
  Additional funding available for businesses: Economic Injury Disaster Loan: There is now an additional $60 billion for the EIDL program including $50 billion in loans and $10 billion in grants. SBA will process EIDL Loan and Advance applications that are already in queue in the order they were received.
• New charitable contribution opportunities: The CARES Act created incentives for individuals to make charitable contributions in 2020, especially for those that itemize deductions. The CARES Act increases the maximum 60% of Adjusted Gross Income (AGI) charitable contributions limit to a 100% limit for certain charitable contributions made in 2020. For more information go to our News and Publications page.
  Stimulous payment bank account tool: The new Get My Payment tool to let taxpayers check on their Economic Impact Payment date and update direct deposit information is now available on IRS.gov. People who did not use direct deposit on their last tax return will be able to input information to receive the payment by direct deposit into their bank account, expediting receipt. If you have filed a tax return be sure to have your most recently filed 2018 or 2019 tax return with you to assist with the information needed to verify sensitive information on the site. For more information and to access the payment tool go to:  www.irs.gov/coronavirus/get-my-payment
  Unemployment for those that are self employed: Self-employed workers, gig workers, 1099-independent contractors and low-wage workers can apply for federal benefits online at Michigan.gov/UIA. All newly eligible workers will need to provide proof of income to receive the maximum amount they are entitled. This could include W-2s, 1099 tax forms, and pay stubs. For more information go to www.michigan.gov/leo/0,5863,7-336-78421_97241_90031-523450--,00.html.
  Stimulous non tax filer payment web tool​: The Treasury Department and the Internal Revenue Service launched a new web tool allowing quick registration for Economic Impact Payments for those who don’t normally file a tax return. The non-filer tool provides a free and easy option designed for people who don’t have a return filing obligation, including those with too little income to file. The feature is available only on IRS.gov and users should look for Non-filers: Enter Payment Info Here to take them directly to the tool. To use the web tool go to www.irs.gov/coronavirus/non-filers-enter-payment-info-here.
  Lt. Governor Garlin Gilchrist II was joined by former Lt. Governor, and current president of the Small Business Association of Michigan (SBAM) Brian Calley and Bob Doyle, president and CEO of the Michigan Association of CPAs, is launching a new statewide website, MIpaycheckprotection.com, to provide businesses with key resources to assist with the PPP application and loan process and ensure the greatest amount of federal funding is able to be used by small businesses for economic relief efforts throughout the state.

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Integrity * Accuracy * Trustworthy

Allied Accounting Services has been providing total financial services to individuals and businesses for over 30 years. Professionalism and integrity encompasses everything we do. We help our clients so that their business’ financials are clear and straightforward. We stop and listen to client needs, questions and concerns.  We have experience in financial planning strategies to meet business’ current needs in a number of areas from tax law to a trusted business advisor. We are a trustworthy confidant for your most guarded personal financial information and proprietary business data where we make it easier to deal with stressful financial matters. We offer fresh ideas for more convenient and cost-efficient ways of doing things. Contact us today for a consultation with a competent, experienced advisor to identify and implement innovative ways to keep more of what you earn and help your business grow.