Spending the PPP Money on You and Your Employees
Aug 19, 2020
If you report your business income and expenses on Schedule C of your Form 1040, your Payroll Protection Program (PPP) loan forgiveness is straightforward, as you see in the four answers below.
1. Paying Myself
Question. I know that I can achieve full forgiveness based solely on my 2019 Schedule C income in 10.8 weeks under the 24-week program. Do I have to pay myself every week for 10.8 weeks?
Answer. No. Let’s say your PPP loan is for $20,000. You could, for example, take $20,000 out of your business account in one lump sum and put that in your personal savings anytime during the 10.8-week period and then apply for forgiveness in week 11.
Because both your loan and forgiveness are based on your 2019 Schedule C net profit (yes, last year), you simply need to use the loan money for personal purposes. This is how you pay yourself and obtain loan forgiveness the easy way.
Sure, you need to use only 60 percent of the proceeds for yourself and could use 40 percent for interest, rent, and utilities. But think about it:
• Pay yourself only: simple paperwork.
• Pay interest, rent, and utilities: more rules and paperwork.
Keep it simple. Don’t make yourself suffer.
2. Waiting to Spend
Question. Can I wait a number of weeks before I spend my loan proceeds?
Let’s say I receive the PPP proceeds on August 1, 2020. Can I use the 24-week period and start on August 17, for 11 weeks? Would that be okay? And would it be eligible for forgiveness?
Answer. Yes, no problem. But let’s be clear:
• For PPP loans made on June 5 or later, the 24-week covered period is the rule (there’s no “can” here—no eight-week possibility).
• There’s no requirement that a Schedule C taxpayer spread out the payments.
• There’s no payroll or other impediment here.
3. Spending in Chunks
I am a Schedule C taxpayer with no employees. My PPP loan amount was deposited into my business checking account on May 19, 2020. I am not electing the eight-week covered period. Instead, I am choosing the 24-week covered period, which ends on November 2, 2020.
I have two questions.
Question 1. Can I write one check for every four weeks of payroll and deposit it in my personal checking account?
Answer 1. Yes—but this is not a payroll check. As a Schedule C taxpayer with no employees, you have no payroll. Your PPP loan was based on your 2019 net profit. And your forgiveness will be based on the same amount. You don’t need to spread out your payments.
Question 2. Does this check have to be cashed within that four-week period, or if it is written within that period, is that sufficient to apply for forgiveness?
Answer 2. In general, your check is a payment on the date it is written. Because you are dealing with yourself, you should ensure that the check is cashed soon after it is written.
Also, we don’t see any wisdom (in fact, just the opposite) in writing the check within the 24 weeks and then cashing it outside the 24 weeks.
4. Got the PPP Money but Had a Loss in 2019
Question. I am a Schedule C filer, ran at a loss in 2019, but withdrew $120,000 from the business as the business increased its debt position.
I used my draw amount to obtain a $120,000 PPP loan before the guidance was issued on how sole proprietors should calculate their pay. If the business now has two employees, can both of those employees be used for the forgiveness application?
Answer. Yes, you can use the two employees on the forgiveness application, and you can use 24 weeks of pay. In addition to payroll, 40 percent of the forgiveness can come from interest, rent, and utilities.
Example. Say the two-employee payroll for the 24 weeks totals $60,000 and the interest, rent, and utilities total $30,000. You would achieve $90,000 of forgiveness.
Q&A: PPP Forgiveness Answers for S Corporation Owner-Employees
Tax law definitions do not apply to much of the PPP, making it new ground for owners of S corporations. Here are answers to four questions of concern to many S corporation owners.
1. Spouse Owns S Corporation
Question. My wife owns 100 percent of the S corporation. She has a full-time job and does no work for the S corporation. I am the sole worker in the S corporation. Am I treated as:
• a “non-owner employee” of the S corporation; or
• an “owner-employee” subject to the limits?
Answer. The PPP guidance does not address the situation you describe. From what we know, you are a non-owner employee, which means you are not stuck with the owner-employee limits.
In tax law, you would have to consider “attribution rules” that would make you own what your wife owns because of your marital relationship. (Yes, in tax law you both would own 100 percent.) But the PPP guidance to date contains no such rules.
According to the latest from the Small Business Administration (SBA), you may rely on the laws, rules, and guidance available at the time of your PPP loan application. As we write, the latest guidance is from over a month ago, on June 25, 2020.
2. S Corporation Owner-Employee with No W-2
Question. I submitted my PPP loan application before the guidance disallowing independent contractor payments was published. And at the time of submission, I had not yet started paying myself a salary.
Now I have the PPP money from the bank but cannot get it forgiven through contractor payments. If I pay myself on a W-2, I lack the look-back period of 2019 payroll. Am I out of luck? Should I go on payroll and hope for the best?
Answer. Under the rules, you are out of luck. Your loan forgiveness is based on the lower of your 2019 W-2 (zero) or your 2020 W-2.
3. S Corporation Loan Based
on K-1
Question. I operate my business as an S corporation with two W-2 employees other than me (I don’t receive a W-2). I applied for the PPP loan and obtained it based on my K-1.
A few weeks later the lender told me that the money I received was not available to be forgiven. This doesn’t seem fair. My profit is my income. Is there any workaround for this?
Answer. No—no workaround. But in your case, likely no PPP loan forgiveness problem either.
But first, let’s think about taxes. You operate as an S corporation, and you take no salary. (That’s incorrect and likely a tax problem if the IRS audits your tax return.)
Now, let’s get to the PPP. Your lender granted you the PPP loan based on the K-1 and ignored your employees. That shows how confusing the PPP has been. But let’s ignore the right and wrong of that and get to the heart of the issue. Can you obtain forgiveness?
Yes, your S corporation’s forgiveness begins with what you pay your W-2 employees during the 24-week covered period, including what you pay in health insurance and retirement on their behalf. In addition, you may include some or all of your payments for business interest, rent, and utilities during the 24 weeks beginning with receipt of the loan.
Example. Let’s say you received a $100,000 loan. If your payroll during the 24 weeks is $63,000 and the rent and utilities total $37,000, you would qualify for 100 percent forgiveness. If you achieve this in 20 weeks, you could apply for forgiveness then.
Observation. The fact that the lender based your loan on your profits is simply a mistake by the lender. It does not affect forgiveness, which is based on your using the money for the intended PPP purposes such as payroll.
4. S Corporation with Home Office
Question. You recommend that the S corporation owner use an expense report to submit home-office expenses to the business for reimbursement and then classify the reimbursement in the tax return as an office expense.
How would we classify this as mortgage interest and utilities under the PPP loan forgiveness guidelines? We have the same question for partnerships where an item is claimed as an unreimbursed partner expense.
Answer. The reimbursed expense won’t work for the PPP, but here’s the solution: choose the 24-week program, and you will achieve full forgiveness with only the payroll in as little as 10.8 weeks.
Insights into the PPP Loan and Its Forgiveness
We receive many questions about the PPP. Here are two of them with our answers.
1. Good Faith at the Time
Question. What are your thoughts on the repercussions for business owners who acted in good faith based on the information available at the time and are now left to do things that may be more questionable to earn PPP loan forgiveness?
Answer. First, with good faith, there’s no fraud issue as there is no fraud intent. Second, lenders and individuals had to scramble for a good two months or more before guidance was clarified, so many of the PPP loan application forms were murky (and some still are).
Obtaining the loan based on the guidance that existed at the time of your loan application and approval is a non-issue. Further, lenders used their own formulas during the early process (and in some cases, still use them) to determine the loan amounts.
As to taking “questionable” actions to earn forgiveness, if you follow the forgiveness applications, you are doing nothing questionable. And that’s what you should do: follow the instructions in the loan forgiveness applications.
2. EIDL, EIDL Advance, and PPP
Question. I’ve heard of the Economic Injury Disaster Loan (EIDL), EIDL advance, and the PPP. What are the differences?
Answer. We’ll deal with the big picture here. It will prove helpful.
PPP. The PPP is the cash infusion program of choice. The cash infusion part comes from a bank or other SBA lender and is based on your prior payroll (2019 in most cases). It comes into your business as a forgivable loan if you spend the money on defined payroll, interest, rent, and utilities during a period of up to 24 weeks.
Example. You receive a $50,000 PPP loan and spend it within the 24 weeks on defined payroll with no reduction in your employee head count. You qualify for 100 percent forgiveness.
EIDL. Unlike the PPP loan, which comes from a bank or other approved SBA lender, the EIDL is a loan directly from the SBA; it carries a 3.75 percent interest rate, may require collateral, and must be repaid.
EIDL advance. The EIDL advance, when available, comes into play with the EIDL application. It’s an advance on the EIDL of up to $10,000. If you reject or don’t receive an EIDL and don’t have a PPP loan, the EIDL becomes a non-taxable grant and does not have to be repaid.
If you have a forgivable PPP loan, you reduce the amount of forgiveness by the amount of your EIDL advance.
Example. You have a forgivable PPP loan of $30,000 and an EIDL advance of $7,000. The lender will forgive $23,000 of your $30,000. Let’s say you pay off the remaining $7,000. In this case, you have received a net of $30,000 ($7,000 + $30,000 - $7,000).
All About Limited Liability Companies
Limited liability companies (LLCs) are a popular choice of entity for small businesses and investment activities. LLC owners are called members.
Single-member LLCs have one owner, although spouses who jointly own an LLC in a community property state can elect treatment as a single-member LLC for federal income tax purposes. We will call LLCs with two or more members multimember LLCs.
Key point. LLCs are not corporations. But LLCs can offer similar legal protection to their members (owners).
Here are the most important things to know about LLCs.
LLCs Offer Legal Protection
Using an LLC to conduct a business or investment activity generally protects your personal assets from LLC-related liabilities—similar to the legal protection offered by a corporation.
As you know, liabilities can arise from simple things—like a delivery guy slipping on something you left on your front steps—or in seemingly endless and complicated ways if you have employees.
Key point. As a general rule, no type of entity (including an LLC) will protect your personal assets from exposure to liabilities related to your own professional malpractice or your own tortious acts.
Tortious acts are wrongful deeds other than by breach of contract—such as negligent operation of a motor vehicle resulting in property damage or injuries. The issue of liability protection offered by an LLC is a matter of state law. Seek advice from a competent business attorney for details.
Single-Member LLC Tax Basics
Single-member LLC businesses owned by individuals are treated as sole proprietorships for federal income tax purposes unless the member elects to treat the single-member LLC as a corporation.
In other words, the default federal income tax treatment for a single-member LLC business is sole proprietorship status. Under the default treatment, you simply report all the single-member LLC’s income and expenses on Schedule C of your Form 1040.
If the single-member LLC business activity generates net self-employment income, you will report that on Schedule SE of your Form 1040.
Rental. If the single-member LLC activity is a rental activity, you report the rental income and expenses on Schedule E of your Form 1040.
Farm or ranch. You report the numbers for a farming or ranching activity on Schedule F.
Simple. You don’t need to file a separate federal income tax return for the single-member LLC. And other things being equal, simple is good.
Three key points
1. The big federal income tax advantage of operating as a single-member LLC is simplicity.
2. The big non-tax advantage is liability protection, under applicable state law.
3. As mentioned, you can elect to treat a single-member LLC as a corporation for federal income tax purposes, but we don’t recommend that, for reasons we explain later.
Multimember LLC Tax Basics
Multimember LLCs are treated as partnerships for federal income tax purposes unless you elect to treat the LLC as a corporation.
In other words, the default federal income tax treatment for a multimember LLC is partnership status. Under the default treatment, you must file an annual partnership federal income tax return on Form 1065.
From the Form 1065 partnership return, the LLC issues an annual Schedule K-1 to each member to report that member’s share of the LLC’s income and expenses. The member then takes those taxable and deductible amounts into account on the member’s own return (Form 1040 for a member who is an individual).
The LLC itself does not pay federal income tax. This arrangement is called pass-through taxation, because the income and expenses from the LLC’s operations are passed through to the members, who then take them into account on their own returns. (The same pass-through taxation concept applies to entities set up as “regular” partnerships under applicable state law.)
Electing to Treat the LLC as a Corporation for Tax Purposes
You have the option of electing to treat a single-member LLC or multimember LLC as a corporation for federal income tax purposes. You do that by filing IRS Form 8832, Entity Classification Election, to change the default classification of the single-member LLC or multimember LLC to the new classification as a corporation.
If your desire is to have your LLC treated as an S corporation, it can elect S corporation status directly using IRS Form 2553, or it can elect C corporation treatment on Form 8832 and then S corporation treatment on IRS Form 2553. While there may be valid non-tax reasons for electing to treat an LLC as a corporation, we think tax reasons generally dictate against taking that step.
If you conclude that there are tax advantages to electing corporate status, why not just actually incorporate your operation in the first place? That’s simpler. Keeping your tax matters simple is generally good policy.
Electing corporate status from the LLC could have unintended tax consequences. For example, you can potentially collect federal-income-tax-free gains from selling stock in a qualified small business corporation (QSBC). But you must own shares and hold them for over five years to cash in on this super-favorable deal. Can an LLC membership (ownership) interest count as QSBC stock for this purpose? Apparently not. It’s not stock.
If you are looking for the QSBC stock break, just set up as a corporation in the first place.
Here’s another example: a special federal income tax break allows you to annually deduct up to $50,000 of losses from selling eligible small business stock, or $100,000 if you’re a married joint filer, and treat the loss as a tax-favored ordinary loss instead of a tax-disfavored capital loss.
Can an LLC membership interest count as eligible stock for this purpose? Apparently not. It’s not stock. Avoid the problem—set up as a corporation in the first place.
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
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.
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.
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!
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.
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!
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.
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.
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.
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.
