Tax & Accounting Update
Confusion over due date for PPP loan forgiveness application
Many have been panicking and rushing to submit loan forgiveness applications to their bank when in fact the banks are still holding the applications without processing them as they wait on further instructions. The forms had “Expiration Date: 10/31/2020” in the upper right corner which was confusing to many as they thought that was the deadline for the form to be submitted. That is not true, the deadline for loan forgiveness application to be submitted is 10 months after the last day of each borrower’s loan forgiveness covered period. For more details click on the link below.
What to expect from elections
As we are approaching to the election date many are still not sure who will earn their vote. Taxes are one of the major points of contention. Knowing what tax changes we can expect in the coming years may help you decide on who will have your vote this year. While voting is a right and privilege of citizenship, it is also a duty and responsibility, so please do not forget to vote. By clicking on the link below you can read what all tax changes we can expect if either one of the candidates wins.
Tax Topics Simplified
Who should receive Form 1099-NEC & Form 1099-MISC
All business owners must issue a Form 1099 to each person or business (unless business is incorporated) to whom they paid $600 in rents & other income payments (Form 1099-MISC) or services (Form 1099-NEC). There is no need to issue 1099 for payments made for personal purposes. 1099-NEC is due February 1st, while 1099-MISC is due March 1st if you file by paper, or March 31st, if you file electronically. Penalties for not issuing a 1099 can vary between $50 - $270 per 1099 that is not issued. For more details on who should receive Form 1099-MISC and 1099-NEC, as well as what information you should gather to prepare a 1099 can be found by clicking on a link below.
Employee vs Independent Contractor (Contract Labor)
People often confuse the meaning of the terms employee and independent contractor. The employee receives a W-2 while independent contractor receives a 1099-NEC (in the past it was 1099-MISC). The three basic rules that are distinguished between employee and independent contractor are: behavioral control (who controls how the work is done), financial control (who provides tools/supplies) & relationship of the parties (vacation pay, health insurance etc). For example, If you have to work on the schedule set up by the business owner by using their supplies and resources you would be considered an employee regardless of how many hours per week you work and as such would receive a W-2 at the end of the year. For more details please click on the link below.
Around the World
Croatia - Adriatic Sea
If you are looking for a vacation destination that will take your breath away, I highly recommend that you visit Croatia. Croatia is small country in southern part of Europe with close to 4 million in population. Croatia has some of the most beautiful beaches in the whole world. The destination seems to be far away, but you definitely do not need a very big budget to visit this beautiful country. For the same amount of money that you would spend on traveling to Hawaii or some other location in US you can make a trip and visit this beautiful country. My hometown is just three hours from the beach and my favorite place to visit is Makarska Riviera. Enjoy the video that will take you through beautiful Croatia.
PS. Did you know that Game of Thrones “King’s Lansing” was filmed in Dubrovnik?
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