News you can use
DCM Tax & Accounting Services, LLC
I am pleased to announce that I have decided to make a big step and go on my own effective July 1st. I have decided to make this step to be able to provide more hands-on services to my clients. I am looking to partner up with a limited number of clients to whom I would be able to provide and assist with most if not all accounting and tax needs (bookkeeping, payroll, consulting, tax planning and tax return preparation). Hiring me would be like hiring in house CPA to handle your business and personal accounting and tax needs just for a fraction of the cost. I want to be your partner to help manage the financial side of your business so you can focus on growing and nurturing your business while still having peace of mind and time to spend with you her family and friends. I want to see you as a partner and not just an account. I offer virtual meetings via zoom or meeting at your place of business or at mutually agreeable location. I am currently working from home and plan on continuing to do so through the end of this year.
Reach out to me for a free consultation where we can get to know each other and see if we are a good fit.
Click on the link below to schedule with me free consultation or you can reach me out via email or phone number listed 👇
E-mail: dragana@dcmtax.com
Phone: 318-751-5455
75% or Payroll Protection Program money did not reach employees
Payroll Protection Program (PPP) - fiscal policy intervention that came out in Spring of 2020 as a federal way of assisting employers to keep employees despite the COVID-19 crises saved about 3 million jobs at its peak in second quarter of 2020. The further study shows that money was disproportionately distributed where majority of money flowed to wealthier households and almost three-quarters of its benefits went to unintended recipients, including business owners, creditors and suppliers, rather than to workers. There were two rounds of PPP that employers could apply for that came out as a result of Coronavirus Aid Relief and Economic Security Act (CARES). The loans were forgivable if businesses maintained employment and wages at pre-pandemic levels for two to six months following acceptance of the funds. 90% of nearly $800 billion in PPP loans were forgiven by last month. For more details click on the link below.
Inflation and its impact on a small business
The annual inflation rate for the United States is 9.1% for the 12 months ended June 2022, the largest annual increase since November 1981 and after rising 8.6% previously, according to U.S. Labor Department data published July 13. Many businesses have struggled, and some might have closed due to having difficulties to afford to purchase inventory, and to keep talented labor while still providing quality products/services and charging reasonable prices. Here is an interesting article that talks about a few different ways businesses can think and possibly find a way to cope with inflation and still stay profitable.
Postage Price Increase
Inflation and higher operating cost of US Postal Services has caused the price increase of first-class stamps by 3.45% since last year. The cost of the first-class stamps has climbed 76% since 2001 and 20% since 2018. As the cost of the stamps is increasing many businesses are finding other ways to deliver letters and other documents through electronic means which in today’s world can cost significantly less. For more details on price changes for postage click on the link below.
"Pink-Tax" Eliminated in Louisiana
The state of Louisiana passed a bill on June 23, 2022 that will exempt sales of diapers and feminine hygiene products from Louisiana sales tax effective July 1, 2022. The exemption includes child and adult diapers and feminine hygiene products including tampons, sanitary napkins, and panty liners. For a full article click on the link below.
Fuel Tax Break and Increased threshold for Long Term Capital Gain Rate
Here are the two topic that have been recently talked about but still no progress has been made.
Fuel Tax Break
President Biden has called for temporarily suspension of the federal gasoline tax for three months which would mean on average reduction of 18.4 cents per gallon to help mitigate the cost of spiking gas prices. This call does not look like it will make it through congress since Biden has even received push back from his fellow democrats. They are all suggesting, to leave it up to states to give State gas tax holidays. A few states have already enacted relief (New York, Florida, Georgia, Connecticut, and Maryland).
Increased threshold for Long Term Capital Gain Rate (LTCGR)
Senate (which is controlled by republicans) has made a proposition to let even more people qualify for 0% LTCG rate. This proposed new bill would expand 0% rate on long term capital gains and dividends to align the income levels with the top of the 22% federal income tax bracket. For 2022 that would mean the income threshold amounts would increase to $89,075 on single returns and $178,150 on joint returns. This proposal would also hike the income levels for the 3.8% net investment income tax which now impact single filers with modified adjusted gross income over $200,000 and joint filers with MAGI in excess of $250,000. The bill would raise the threshold for joint filers to $400,000.
Dragana's World
Novak Djokovic defeats Nick Kyrgios for fourth consecutive Wimbledon title
Novak Djokovic the legend has managed to win fourth consecutive Wimbledon title and seventh overall (Go Nole!!!). Despite the rough start and Australian open saga earlier this year and loss in quarterfinals round of Rolland Garos, Djokovic has managed to gain back his focus and win yet another Wimbledon title. The next grand slam is US Open, and I sincerely hope that US Government and tennis officials will all agree and allow the world number one to enter the country to be able to participate in a tournament despite Novak’s resistance to receiving COVID-19 vaccination. Below is the picture of Djokovic and Mr. Davor Poljak that was taken a few days back in my home country. Davor Poljak who lives here in Shreveport was my tennis coach back in Bosnia when I was 14 years old.