Eviction Moratoriums in 2020

Bradford Tax Institute • Oct 02, 2020

Dear Client:


During this COVID-19 pandemic, landlords have two big possible problems:


  1. Tenants who can’t pay the rent.
  2. Tax losses they can’t deduct.


We’ll start with the tenants and then move on to the rental property tax-loss issues.


For the first time in U.S. history, residential landlords are subject to a sweeping nationwide federal moratorium on evictions for nonpayment of rent through the end of 2020.


There is no moratorium on landlords’ responsibility to pay their bills. Thus, landlords need to prepare for some of the rockiest times in decades.


The Federal Moratorium on Residential Evictions


The Centers for Disease Control and Prevention (CDC) and the Department of Health & Human Services issued the latest federal moratorium on evictions. It is an emergency health measure intended to help prevent the spread of COVID-19.


The CDC order is effective September 4, 2020, through December 31, 2020. The order replaces an eviction moratorium put in place on March 27, 2020, by the Coronavirus Aid, Relief, and Economic Security (CARES) Act that expired July 24, 2020.

 

The CDC order generally bars residential landlords from evicting tenants for nonpayment of rent if a tenant’s estimated 2020 income is no more than $99,000 (single) or $198,000 (married, filing jointly).


Unlike the CARES Act moratorium, which applied only to multifamily rental properties with rental subsidies or federally backed mortgages, the CDC order applies to all types of residential rentals: houses, duplexes, apartment buildings, mobile homes, and mobile home spaces. There is no requirement that the rental be federally financed or rent subsidized.


The CDC order does not apply to commercial properties, including motels and hotels. Nor does it apply to guesthouses rented to temporary guests or seasonal tenants—this presumably excludes most Airbnb and similar short-term rentals.


To prevent an eviction, a tenant need only give the landlord a declaration signed under penalty of perjury providing that the tenant


·        has used his or her best efforts to obtain all available government assistance for rent or housing;

·        falls within the income restrictions ($99,000 or $198,000 in income for 2020);

·        is unable to pay the full rent due to substantial loss of household income, loss of work or wages, or extraordinary out-of-pocket medical expenses;

·        is using his or her best efforts to make partial payments that are as close to the full rental payments as the tenant’s circumstances permit; and

·        would likely become homeless or forced to move into and live in close quarters or a shared living space.


Tenants need not provide their landlord with any proof that the statements in the declaration are true. The CDC has created a form declaration for tenants to use.


There is no time limit on when tenants must provide this declaration to their landlord—they can do so anytime before or after receiving a termination notice.


Individual landlords who violate the CDC order are subject to a fine of up to $100,000 and up to one year in jail, if the violation does not result in a death.


The fine goes up to $250,000 if the violation results in a death (it’s unclear how the government could prove an eviction caused a tenant’s death).


The fines are doubled for organizations such as LLCs, corporations, and REITs.


Help Tenants Get Help


The CDC order requires tenants to seek government aid to help pay their rent. But they need not seek help from nongovernment sources such as churches or private charities.


It is to your advantage to help your tenants obtain such aid. After all, you would like the rent to get paid. And you likely would want to keep the tenant—assuming this is a good tenant. Links to government programs providing financial assistance for renters are available at https://legalfaq.org.


Work Out a Payment Plan


Try to work out payment plans with struggling tenants. This is in their best interests as well as your own. Be sure to get the terms in writing.


For example, if a tenant’s income has declined by 20 percent, you could agree to accept a 20 percent rent reduction through the end of the year and require the tenant to pay the balance due over 2021. Make it clear that this is a partial rent payment and does not satisfy the tenant’s full rental obligation.


You are under no obligation to offer a tenant a permanent rent reduction or any form of rent forgiveness.


And keep in mind that your government is not going to reward your generosity. You get no tax deduction or other tax benefit for reducing or forgiving rent. This doesn’t mean you shouldn’t do it. Just don’t expect the tax code to reward your generosity.


Unpaid Rent Is Not Tax-Deductible


Bad news. Unpaid rent is not a tax-deductible rental expense. Rather, it is a debt owed to you by your tenant. You get no tax deduction for the unpaid rent even if tenants never pay the rent they owe.


Good news. On the plus side, unpaid rent is not taxable as income, is not reported on your tax return, and increases the chances that you will have a rental property tax loss (deductible, we hope). This assumes you are a cash-basis taxpayer, as virtually all residential landlords are.


Deducting Rental Property Tax Losses


You have a rental loss if the total annual expenses you incur for your rentals (mortgage interest, taxes, utilities, insurance, maintenance, depreciation, and other expenses) exceed your total rental income (which does not include unpaid rent).


It’s likely that many landlords who ordinarily have profitable rentals will suffer rental losses for 2020 because their tenants failed to pay all or part of their rent.


The dreaded passive activity loss rules prevent many landlords from deducting all or part of their rental losses from their non-rental income.


Rental losses are always classified as passive losses. Subject to two important exceptions, the general rules are as follows:


  • Passive losses are deductible only from passive income—income from rental activities and from businesses in which you do not materially participate.
  • Passive losses are not deductible either (a) from ordinary income such as salary and self-employment earnings, or (b) from investment income such as dividends or interest.


Exception 1. $25,000 Allowance for Rental Real Estate


The tax law takes pity on landlords with a relatively modest income and permits them to deduct a limited amount of rental losses from non-rental income.


If your modified adjusted gross income for the year is under $100,000, you may deduct up to $25,000 in total annual rental losses from your nonpassive income, provided that you actively participate in the management of your rentals (an easy standard to meet).


Exception 2. Real Estate Professional Exemption from Passive Loss Rules


There’s another way you may be able to deduct your rental losses from non-rental income no matter how high your income: the real estate professional exemption from the passive loss rules.


If you qualify as a tax law–defined real estate professional and materially participate in your rental activity, you may treat rental losses as nonpassive and deduct them from all other nonpassive income without limit for 2020.


Either you or your spouse will qualify as a real estate professional for the year if one of you spends


  • more than half your personal service work time in real property trades or businesses in which you materially participate, and
  • more than 750 hours of your personal service work and investment analysis time in real property trades or businesses in which you and/or your spouse materially participate.


In addition to the standard described above, you and/or your spouse must materially participate in a rental activity to enable the tax loss deduction against your other income. There are various methods for establishing material participation. The two most common are working more than 500 hours in a tax law–grouped multi-rental activity and working more than 100 hours more than anyone else on individual non-grouped properties.


People with a full-time job outside the tax law–defined real estate industry can rarely qualify as real estate professionals.


Non-deductible Rental Losses Become Suspended Passive Losses


You don’t lose rental losses you can’t deduct because of the passive loss rules. Instead, the losses become suspended passive losses. They are carried forward indefinitely and deducted from passive income each year until they are used up.


You may also deduct your suspended passive losses if you sell or otherwise dispose of substantially all your interest in your rental property in a taxable transaction.


If you would like my help with your rental properties, please call me at the office at 216-859-7001.


Sincerely,


Jeffrey Beder

Navigating Life’s Milestones: How They Impact Your Taxes

By Amanda Beder • 14 May, 2024
Life is full of milestones – from welcoming a new bundle of joy into your family to embarking on exciting entrepreneurial ventures. While these moments bring joy and excitement, they also bring changes to your financial landscape, including their impact on your taxes. At Acumen MB LLC, we understand that each of these life events carries unique tax implications, and we’re here to guide you through them. 1. The Birth of a Child : Welcoming a new member to your family is a life-changing event, both emotionally and financially. Did you know that having a child can lead to tax benefits such as the Child Tax Credit, Child and Dependent Care Credit, and the Earned Income Tax Credit? Additionally, you may want to explore tax-advantaged savings options like a 529 plan for your child’s education expenses. Our team can help you navigate these opportunities and ensure you’re maximizing your tax savings. 2. Buying or Selling Real Estate : Whether you’re purchasing your dream home or selling an investment property, real estate transactions can have significant tax implications. From capital gains taxes to mortgage interest deductions, it’s essential to understand how these transactions impact your tax liability. Consulting with our experts can help you strategize to minimize taxes and maximize returns in your real estate endeavors. 3. Buying or Selling a Business : Entrepreneurship comes with its own set of tax considerations, especially when buying or selling a business. Structuring the transaction in the most tax-efficient manner can save you substantial amounts of money. Whether you’re evaluating the tax consequences of an acquisition or planning an exit strategy, our team can provide invaluable advice tailored to your unique situation. 4. Investment Income During Volatile Periods : Volatile markets can lead to fluctuations in investment income, which in turn can affect your tax liability. Understanding the tax treatment of various types of investment income, such as capital gains, dividends, and interest, is crucial for optimizing your tax situation. We can help you develop tax-efficient investment strategies that align with your financial goals. 5. Moving : Relocating to a new state or country can have significant tax implications, State and local income tax rates vary widely, and moving across state lines can impact your tax filing requirements and deductions. Additionally, international moves may trigger complex tax issues such as foreign income reporting and tax treaties. Our team can assist you in navigating the tax consequences of your move and ensure compliance with applicable laws. These are just a few examples of life events that can impact your taxes, but there are many others. Whether you’re getting married, divorcing, starting a business, or planning for retirement, consulting with our experienced tax professionals can provide peace of mind and potentially save you money. At Acumen MB LLC, we’re committed to helping you make informed financial decisions at every stage of your life. Contact us today to schedule a consultation and take control of your tax situation. Remember, proactive tax planning is the key to financial success!

Making a Difference: Acumen MB LLC Celebrates National Volunteering Week in Cleveland and Nationwide

By Amanda Beder • 13 May, 2024
As National Volunteering Week approaches, we at Acumen MB LLC are thrilled to celebrate the spirit of giving back and making a positive impact in our community. Volunteering is not just about donating time; it’s about contributing to the greater good, fostering connections, and creating lasting change. This year, we are excited to shine a light on some incredible volunteering opportunities right here in northeast Ohio or in your area. Feeding the Hungry: One of the most pressing issues facing communities across the nation is food insecurity. Numerous organizations are working tirelessly to ensure that no one goes hungry. From food banks to soup kitchens, there are ample opportunities to volunteer your time and support those in need. Consider lending a hand at a food bank or pantry or serving meals at a local shelter. Your efforts can make a significant difference in the lives of individuals and families struggling to put food on the table. Mentoring Youth: Empowering the next generation is essential for building a bright future for our community. Organizations like Big Brothers Big Sisters and Boys & Girls Clubs provide invaluable mentorship programs that help young people reach their full potential. By volunteering as a mentor, you can make a profound impact on a child’s life, offering guidance, support, and encouragement. Environmental Conservation: Protecting our environment is a collective responsibility, and there are plenty of opportunities to get involved in conservation efforts. Whether it’s participating in a local clean-up event, volunteering at a community garden, or joining a conservation organization, you can play a vital role in preserving the beauty of our natural surroundings for future generations to enjoy. Supporting Seniors: Many seniors in our community face challenges such as loneliness, limited mobility, and financial hardship. Volunteering with local organizations or senior centers can provide much-needed companionship and assistance to older adults in need. Whether it’s visiting with seniors, helping with household tasks, or organizing recreational activities, your time and compassion can make a world of difference. Caring for Animals: Let’s not forget about our furry friends who also need our support and care. Cleveland is home to several animal shelters and rescue organizations dedicated to finding loving homes for pets in need (including our very own Head of Security, Eddy!) Volunteering at a shelter can involve everything from walking dogs and socializing with cats to assisting with adoption events and fundraising efforts. By volunteering your time and skills, you can help improve the lives of animals and contribute to their well-being. At Acumen MB LLC, we believe in the power of volunteering to strengthen communities and drive positive change. That’s why we encourage our team members to get involved in causes they are passionate about and support their efforts to make a difference. This National Volunteering Week, we invite you to join us in giving back and making a lasting impact in the lives of others. Together, we can create a brighter, more compassionate future for all.

Celebrating Public Service: A Tribute from Acumen MB LLC

By Amanda Beder • 07 May, 2024
As we step into Public Service Recognition Week, Acumen MB LLC extends our heartfelt gratitude to all those who dedicate their lives to public service. This week is not just a mere acknowledgment; it’s a celebration of the unwavering commitment and selfless dedication of individuals who work tirelessly to serve our communities, nation, and beyond. At Acumen MB LLC, we understand the invaluable contributions made by public servants. From firefighters who bravely rush into burning buildings to educators shaping the minds of our future leaders, from healthcare workers providing compassionate care to civil servants ensuring the smooth functioning of our government institutions – each role plays an integral part in the fabric of society. Public service is more than just a job; it’s a calling, a commitment to something greater than oneself. It requires sacrifice, resilience, and an unwavering sense of duty. It’s about putting the needs of others before our own and striving to make a positive difference in the lives of those we serve. As an accounting firm, we have had the privilege of working with various public sector organizations and witnessing firsthand the dedication and passion that public servants bring to their roles. Whether it’s managing budgets, ensuring compliance, or providing financial insights, these individuals work tirelessly behind the scenes to ensure that resources are allocated efficiently and effectively to meet the needs of the community. Public Service Recognition Week is not only an opportunity to express our gratitude but also a time to reflect on the importance of supporting and empowering our public servants. It’s about recognizing their contributions, advocating for their well-being, and investing in resources and infrastructure that enable them to thrive in their roles. As we celebrate Public Service Recognition Week, let us take a moment to thank all those who serve our communities with integrity, compassion, and dedication. Your commitment to public service inspires us all, and we are honored to stand alongside you in making a positive impact on the world.

Safeguarding Your Finances: World Password Day Reminds Us of the Importance of Cybersecurity in Tax Season

By Amanda Beder • 01 May, 2024
As a leading accounting firm dedicated to ensuring the financial health and security of our clients, we are always vigilant about safeguarding sensitive information. With World Password Day upon us, it’s an opportune moment to reflect on the critical role cybersecurity plays, especially during tax season. In today’s digital age, passwords serve as the frontline defense against unauthorized access to confidential data. Whether it’s personal tax information or sensitive financial records, protecting this data is paramount. At Acumen MB LLC, we understand the significance of robust cybersecurity measures in preserving the integrity of our client’s financial information. Tax season, in particular, underscores the importance of maintaining secure passwords and implementing stringent cybersecurity practices. With cyber threats becoming increasingly sophisticated, individuals and businesses alike are vulnerable to data breaches, identity theft, and financial fraud. As trusted financial advisors, we recognize the immense responsibility entrusted to us by our clients to ensure the confidentiality and security of their financial data. Here are some essential tips to enhance your cybersecurity posture, not only during tax season but throughout the year: 1. Create Strong, Unique Passwords : Avoid using easily guessable passwords such as “123456” or “password.” Instead, opt for complex combinations of letters, numbers, and special characters. Consider using a reputable password manager to generate and store secure passwords for various accounts. 2. Enable Multi-Factor Authentication (MFA) : MFA adds an extra layer of security by requiring additional verification steps beyond a password, such as a unique code sent to your mobile device. By enabling MFA, you significantly reduce the risk of unauthorized access to your accounts. 3. Stay Vigilant Against Phishing Attempts : Be cautious of unsolicited emails, messages, or phone calls requesting sensitive information or prompting you to click on suspicious links. Cybercriminals often use phishing tactics to trick individuals into divulging personal or financial data. Verify the legitimacy of communications before taking any action. 4. Regularly Update Software and Security Patches : Keep your operating system, antivirus software, and other applications up to date with the latest security patches. Vulnerabilities in outdated software can be exploited by cyber attackers to gain unauthorized access to your devices and networks. 5. Educate Yourself and Your Team : Invest in cybersecurity awareness training for yourself and your employees. Educate them about common cyber threats, safe browsing practices, and the importance of maintaining strong passwords. A well-informed team is your first line of defense against cyber attacks. At Acumen MB LLC, we go above and beyond to uphold the highest standards of cybersecurity to protect our clients’ financial interests. From implementing robust encryption protocols to conducting regular security audits, we employ a multi-layered approach to safeguarding sensitive data. As we observe World Password Day, let us reaffirm our commitment to cybersecurity best practices and empower ourselves with the knowledge and tools necessary to defend against evolving cyber threats. Together, we can ensure a secure and prosperous financial future. Remember, your password is the key to your financial fortress. Handle it with care and fortify your defenses against cyber adversaries. Stay secure, stay informed, and let us at Acumen MB be your trusted partner in navigating the complex landscape of taxation and finance. Wishing you a happy World Password Day and a cyber-secure future ahead!

National Small Business Month: Tax Tips and Accounting Insights

By Amanda Beder • 01 May, 2024
As we celebrate National Small Business Month, it’s a perfect opportunity to reflect on the resilience, creativity, and dedication of small business owners across the nation. At Acumen MB LLC, we understand the pivotal role small businesses play in driving economic growth and fostering innovation. As advocates for small business success, we’re here to provide valuable insights and guidance, particularly in the realm of taxes and accounting. Taxes: The Backbone of Business Operations Taxes are an inevitable aspect of running a business, but they need not be daunting. Here are some key considerations to ensure your tax strategy aligns with your business goals: 1. Stay Organized: Maintaining meticulous records of income, expenses, and receipts throughout the year streamlines the tax preparation process. Utilize accounting software or engage with professional services to keep your financial records in order. 2. Understand Deductions: Familiarize yourself with available deductions and credits that can minimize your tax liability. Deductible expenses may include office supplies, equipment purchases, travel expenses, and even a portion of your home office if applicable. 3. Plan Ahead: Proactive tax planning is essential for optimizing financial outcomes. Assess your tax obligations quarterly to avoid surprises at year-end. Consider scheduling a consultation with our experts at Acumen MB LLC to develop a comprehensive tax strategy tailored to your business needs. Accounting: Building a Strong Financial Foundation Effective accounting practices form the bedrock of a successful small business. Here are some fundamental principles to enhance your financial management: 1. Accurate Bookkeeping: Maintain accurate and up-to-date financial records to gain insights into your business’s financial health. Regularly reconcile bank statements, track expenses, and categorize transactions to monitor cash flow effectively. 2. Budgeting and Forecasting: Develop a realistic budget and financial forecast to guide decision-making and resource allocation. By setting clear financial goals and monitoring performance against benchmarks, you can identify areas for improvement and capitalize on growth opportunities. 3. Strategic Advisory Services: Leverage the expertise of accounting professionals to receive strategic guidance and actionable insights. Whether you’re seeking assistance with financial analysis, business valuation, or strategic planning, our team at Acumen MB LLC is committed to supporting your business objectives. As we honor National Small Business Month, let us recognize the remarkable contributions of entrepreneurs and small business owners nationwide. At Acumen MB LLC, we are dedicated to empowering small businesses with the knowledge, tools, and support they need to thrive. By implementing proactive tax strategies and adopting sound accounting practices, you can position your business for sustained success in an ever-evolving marketplace. Reach out to us today to discover how we can partner with you on your journey towards financial prosperity.

Celebrating National Mom and Pop Business Owners Day: Nurturing Small Businesses Through Financial Acumen

By Amanda Beder • 29 Mar, 2024
As we celebrate National Mom and Pop Business Owners Day, we at Acumen MB LLC extend our heartfelt gratitude to all the passionate entrepreneurs who drive the spirit of small businesses across the nation. Today, we reflect on the invaluable contributions you make to our communities and economy, and we reaffirm our commitment to supporting your journey toward financial success. At Acumen MB LLC, we understand the dedication, hard work, and sacrifices that go into running a small business. As fellow entrepreneurs ourselves, we empathize with the challenges you face, especially in navigating the complex landscape of accounting and taxes. However, we firmly believe that with the right guidance and expertise, every small business has the potential to thrive. Accounting and tax management are often perceived as daunting tasks, overshadowing the joy and passion that drive you to pursue your dreams. But fret not, for we are here to alleviate your burdens and empower you with the financial acumen necessary to flourish. Our team of seasoned professionals is committed to providing personalized solutions tailored to your unique needs, ensuring compliance, maximizing efficiency, and optimizing profitability. In the spirit of National Mom and Pop Business Owners Day, we invite you to reflect on the journey you’ve embarked upon. Remember the initial spark of inspiration that ignited your entrepreneurial spirit, the countless late nights spent strategizing, and the moments of triumph that reaffirmed your resilience. Today, celebrate your accomplishments and embrace the unwavering determination that sets you apart. As advocates for small businesses, we recognize the pivotal role you play in shaping our communities and driving innovation. Your dedication not only sustains livelihoods but also fosters a sense of belonging and camaraderie that transcends mere transactions. Together, we form the backbone of a vibrant entrepreneurial ecosystem that thrives on collaboration and mutual support. In commemorating National Mom and Pop Business Owners Day, let us reaffirm our commitment to nurturing the entrepreneurial spirit that defines us. As your trusted partners in prosperity, we stand ready to assist you in overcoming obstacles, seizing opportunities, and charting a course toward sustained success. Together, let us embrace the journey ahead with optimism, resilience, and unwavering determination. Happy National Mom and Pop Business Owners Day!

Celebrating National Nutrition Month: The Power of Food as Medicine

By Amanda Beder • 15 Mar, 2024
As a team at Acumen MB LLC, we are thrilled to celebrate National Nutrition Month. This month is a time to reflect on the importance of proper nutrition and its impact on our health. At Acumen MB LLC, we strongly believe in the power of food as medicine and its ability to prevent illnesses from occurring in the first place. It’s crucial to recognize that what may be healthy for one person may not be the best solution for another. Each individual has unique nutritional needs based on factors such as age, gender, activity level, and health status. Therefore, personalized nutrition guidance is essential to help individuals make informed choices that support their overall well-being. For instance, our team member Amanda follows a gluten free lifestyle for her health. (If you’re considering a gluten-free lifestyle or have any questions about it, Amanda is a great resource!) We also encourage you to explore the benefits of incorporating functional foods into your diet. Functional foods are those that provide health benefits beyond basic nutrition. Examples include foods rich in antioxidants, probiotics, and omega-3 fatty acids. By incorporating these foods into your diet, you can support your body’s natural defense mechanisms and promote overall health and wellness. As we celebrate National Nutrition Month, we invite you to join us in prioritizing your health and well-being. Whether you are looking to improve your diet, manage a chronic condition, or simply enhance your overall health, we are here to support you. Together, we can harness the power of food as medicine and create a healthier, happier future for ourselves and our loved ones.

Celebrating International Women’s Week: Empowering Women in the Workforce and Beyond

By Amanda Beder • 08 Mar, 2024
As we celebrate International Women’s Week and International (Working) Women’s Day, we at Acumen MB LLC would like to take a moment to reflect on the invaluable contributions of women in the workforce and beyond. As an accounting firm, we are proud to say that our team is comprised of 75% women, and we recognize the immense value they bring to our organization and the broader professional landscape. In recent years, there has been a significant push for gender equality in the workplace, and we are committed to fostering an environment where all individuals, regardless of gender, feel empowered to thrive and succeed. We firmly believe that diversity and inclusion are essential components of a successful business, and we are dedicated to promoting these values within our firm and the wider community. As we continue to work towards gender equality, we must also recognize and address the unique challenges that women face in the workforce, such as the gender pay gap and lack of representation in leadership positions. By fostering a culture of inclusivity and support, we can create a more equitable and prosperous future for all. It’s important to acknowledge that women’s contributions extend far beyond the workplace. Many women (and men) choose to dedicate their time to caring for their families and homes, and their efforts are equally as important and deserving of recognition. The roles of caregiver and homemaker are often undervalued, but we understand the vital role they play in our society and economy. Additionally, we must not forget the invaluable contributions of parents, who often have the toughest job of all. The work of parenting is demanding, relentless, and often goes unnoticed. Yet, it is the foundation of our society and shapes the future generations. Parents, regardless of gender, deserve our utmost respect and appreciation for the work they do. This International Women’s Week, let us celebrate the achievements of women in all aspects of life and work towards a more inclusive and equitable future for all.

Student Loan Repayment Programs: A Win-Win for Employers and Employees

By Amanda Beder • 21 Feb, 2024
In today’s competitive job market, employers are constantly seeking new ways to attract and retain top talent. With voluntary turnover rates reaching record highs, companies are looking for any edge they can get. One increasingly popular benefit that has been gaining traction is student loan repayment programs. These programs offer a win-win solution for both employers and employees, and recent changes in tax laws have made them even more affordable. Thanks to the Consolidated Appropriations Act, signed into law in 2020, employers can now offer up to $5,250 in student loan repayment benefits without paying any tax. This change has made student loan repayment programs more accessible to a wider range of employers, and as a result, more and more companies are offering some form of loan repayment support. In fact, by October 2023, 34% of employers were offering student loan benefits, up from just 17% in 2021. The need for student loan repayment programs is clear when you consider the scale of the student loan epidemic in the United States. Nearly 44 million Americans owe more than $1.6 trillion in student loans, making it the fourth highest U.S. debt category. The average federal student loan debt balance is nearly $38,000, and when you factor in private loan debt, the total average balance may be more than $54,000. Given these staggering numbers, it’s no wonder that student loan repayment benefits could be a major draw for job candidates. For employers, offering student loan debt relief can help attract and retain talent more easily. Studies have shown that 86% of workers would commit to an employer for five years if the employer offered student loan support. This can lead to increased employee loyalty and engagement, as well as improved productivity and job satisfaction. Setting up a student loan repayment program is relatively straightforward, especially with the help of a financial organization that offers program management. However, if you prefer to handle it yourself, here are a few tips to keep in mind: 1. Determine the monthly payments you want to contribute, keeping in mind that even small amounts can save employees thousands of dollars in interest. 2. Set a cap on the maximum amount you’ll contribute. 3. Decide who will be eligible to receive the benefit, keeping in mind that nondiscrimination rules do not apply to student loan repayment programs. 4. Consider requiring a specific work commitment from the employee in exchange for loan repayment assistance. It’s also worth noting that there have been recent updates to 401(k) plans that allow employers to help employees pay off their student loan debt without sacrificing an employer retirement match. This can be a particularly attractive benefit for employees who are struggling to save for retirement while also paying off their student loans. In conclusion, student loan repayment programs can be a valuable tool for employers looking to attract and retain top talent. By offering this benefit, employers can help their employees pay off their student loans faster, improve their financial health, and increase their loyalty and engagement. And with recent changes in tax laws, these programs are more affordable than ever.

WISP Badge

By Amanda Beder • 19 Feb, 2024
Acumen MB LLC is thrilled to announce that our written information security plan (WISP) has successfully passed a rigorous review conducted by a PTIN Security Certified IT Firm, Tech 4 Accountants! Our WISP has met all the stringent data security requirements outlined in IRS Publication 4557, IRS Publication 1075, IRS Publication 5293, IRS Publication 5708, and IRS W-12 Paid Preparer Tax Identification Number (PTIN) Application and Renewal. This means that we are fully equipped to safeguard your sensitive information and maintain the highest standards of confidentiality and integrity. The approved WISP period is valid until 12/20/2024. After this date, we will be required to resubmit a new written information security plan that complies with the latest regulations. Rest assured, we are committed to staying ahead of the curve and ensuring that your data remains protected. Why is WISP important? A WISP is a comprehensive set of policies and procedures designed to protect sensitive information from unauthorized access, use, disclosure, modification, or destruction. It is crucial for any organization that handles sensitive data, as it helps mitigate risks and ensures compliance with legal and regulatory requirements. Thank you for your trust in Acumen MB LLC. We are dedicated to maintaining the highest standards of security and confidentiality, and we look forward to continuing to serve you with excellence.
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