Johnson Glaze & Co., PC

08/24/2020

Due Dates Approaching Quickly
To be sure we have enough time to complete your tax return, we will need your corporation or partnership by September 15th, we will need your tax documents and other information to us by this coming Monday, August 24th. For the extended 1040 due date (October 15th) we’d like to have your all necessary documents in by September 21st.

If you have information to bring by or send via the portal, please go ahead and get it to us. We operate on a first-in: first-out basis, so the sooner we get your info to the office, the sooner we can take care of getting your return filed.

Please visit our website, www.johnsonglaze.com, and share it with friends who may need assistance as well. We have new employee photos up, and will be adding a few more in the next month or so. It’s nice to put a face with a name when you are connecting by phone. You can also find us on Facebook. We share this same information there, and it’s an easy way to share good info with friends and family.

What We Know
Please contact our office if you would like our help completing your PPP Loan Forgiveness Application. We’ve heard from a few of you about getting our help with form 3508 – filing for PPP Loan forgiveness, and engagement agreements are on their way to you. Current best practice in most cases is to hold off until the full 24 weeks have passed to gain as many options toward forgiveness as possible and get numbers of employees back up. There are scenarios where that is not the case. Please talk to your bank, and talk to us about what the process is.

If you received a refund and filed your return on time, you may receive a small interest payment back from the IRS this week. Be sure to take note of the amount for your records.

Time off related to COVID-19:
We’ve had a few questions about this. FFRCA Employer-Paid Leave is fully refundable as a tax credit. If an employee takes time off for quarantine or recovery, there are 2 weeks in addition to Oregon-mandated Employer-provided PTO that are available to them. An employer cannot discourage them from taking the time or retaliate in any way for the use of that time. Most payroll companies – including the ones we’re using – are not showing this credit in the calculation of payroll, but are deducting it from payroll tax owed when filing the tax. It will be reconciled on the quarterly payroll reports. If we’re running your payroll, be sure to let us know of any use of this time. Some small employers are exempt from certain aspects of the childcare portion of this new law. As usual, the qualifications for hardship in this case are a bit unclear.

2020 RMDs (and in some cases 2019):
Last reminder on this one! Required distributions from IRAs are not required this year. Distributions that were already taken may be returned by August 31st, 2020. Even payments that were taken out in multiple, smaller amounts (for the purpose of fulfilling the RMD) may be returned in many cases.

If you have taken an RMD this year, and you don’t need it to live on, give us a call to see whether it makes sense to return it to your plan. Please call us if you have questions.

What We Don’t Know
The list of what we don’t know gets longer all the time. With focus turned toward the upcoming election, we’re wary of any predictions of what politicians will do in regard to providing relief.

There are many questions surrounding the president’s new orders – one executive and 3 memorandums – signed shortly after our last update. States were asked to pick up 25% of the new unemployment that should become available toward the end of this month. It remains to be seen when this will come available and whether the federal government will provide the $300 checks regardless of whether states pick up the additional $100. FEMA is providing these payments from the Disaster Relief Fund, so there is some question about how long the payments will remain in place.

Deferral of the employee portion of Social Security tax payments is a big question mark for all. We do not know whether the deferrals will be optional or required, or whether there is a requirement to notify employees if it is optional. This mandate would take effect September 1st for any pay, even for earnings prior to that date, so track this closely, and we'll keep an eye on it as well. If you are our payroll clients, we'll use the most up-to-date information we have when September 1st rolls around.

What We’re Doing
We’re digging into projects, and looking for new ways to serve you better. We’re hiring to attempt to create more capacity to take good care of you. We’re training, to cement the new ways we do things in this new world. Things will continue to move more slowly than you’re used to, as we all learn new and best ways to communicate from a distance, and many are still working from home and will be homeschooling kids again shortly. Thank you for understanding.

If you haven’t received a paper copy of your tax return and you’d like one, please get in touch and we’ll be happy to print that off for you. If you’ve changed your mind and are happy with a PDF copy of your return on the portal, please shoot us an email and let us know to save a tree.

You can always contact us by emailing [email protected]. We’ll direct your email to the best person to handle your request.

Stay Safe; Stay Connected
If you have any needs, please reach out to us. We may have resources or be able to connect you to someone who can help.

Connection challenge: Union Gospel Mission serves and cares for our vulnerable populations, including those who are on the street due to some mental health challenges. You can donate directly to provide meals, and you can also donate goods. They have certain items they always need, and they also take donations of other unused items and sell them in their mission store. So if you’ve used your extra time at home to clean out a closet or shed, they will be glad to take what you no longer need.

Local opportunity of the week: If you’re social distancing at work and struggling with the lack of connection to potential referral sources and businesses you’d normally drop in on, Salem Chamber is still doing a Virtual Greeters Networking group and both Salem and Keizer Chamber of Commerce have great websites with ways to stay connected.

When you’re looking for experienced CPAS in Salem or Keizer, Oregon call the experts at Johnson, Glaze & Co.

08/20/2020

Warm Summer Days:
We’re really enjoying August, and making a point to have everyone get some time off and rest with their families. The date we will need your corporation and partnership info in is August 24th to be sure we have enough time to get it filed for you by September 15th. For the extended 1040 due date (October 15th) we’d like to have your info in by September 21st.

If you have information to bring by or send via the portal, please go ahead and get it to us. We operate on a first-in: first-out basis, so the sooner we get your info to the office, the sooner we can take care of getting your return filed.

Please visit our website www.johnsonglaze.com, and share it with friends who may need assistance as well. You can also find us on Facebook. We share this same info there, and it’s an easy way to share good info with friends and family.

What We Know
We’ve heard from a few of you about getting our help with form 3508 – filing for PPP Loan forgiveness, and engagement agreements are on their way to you.

Here are a few questions we’ve heard about PPP Loan Forgiveness.

Are expenses incurred before the covered period, but paid during the covered period eligible?

Likewise: Are expenses incurred during the covered period and paid after the covered period eligible for forgiveness?

The answer to both is yes! This includes non-payroll costs such as electricity bills and anything required to keep the business open and employees working.

Will retirement plan contributions be eligible for forgiveness?

Generally, yes. Payments withheld from employee pay will not qualify. Payments accelerated for periods outside the covered period will not qualify. However, employer contributions associated with pay during the covered period will qualify for forgiveness.

How is the amount of eligible owner compensation calculated?

This question does not have a simple answer. The owner must work in the business. There are pay caps, but they are dependent on the selected covered period (8 or 24 weeks) and the type of business. Regardless of the number of businesses that the owner participates in, the cap for forgiveness is set at $20,833 per individual. Here is the “as of August 3rd” SBA guidance on forgiveness.

Please contact our office if you would like our help completing your PPP Loan Forgiveness Application.

2020 RMDs (and in some cases 2019):
This deadline is approaching quickly! Required distributions from IRAs are not required this year. Distributions that were already taken may be returned by August 31st, 2020. Even payments that were taken out in multiple, smaller amounts (for the purpose of fulfilling the RMD) may be returned in many cases.

If you have taken an RMD this year, and you don’t need it to live on, give us a call to see whether it makes sense to return it to your plan. Please call us if you have questions.

What We Don’t Know
There’s still nothing definitive from Congress about what we can expect in terms of further financial tax relief or stimulus efforts. We’re at a stand-still for “reopening” until Oregon sees a reduction in COVID-19 cases.

We can’t tell you as a rule whether it’s better to apply for PPP Loan forgiveness after 8 weeks or 24. Extra guidance that gives through the end of 2019 to rehire employees, and questions about what banks and the SBA will consider enough of an effect on business to qualify for the over-arching forgiveness leave many unanswered questions. There is even some hope that lobbyists will be able to convince the SBA that loans under a certain amount should be automatically forgiven.

Current best practice in most cases is to hold off until the full 24 weeks have passed to gain as many options toward forgiveness as possible and get numbers of employees back up. There are differences. Please talk to your bank, and talk to us about what the process is.

What We’re Doing
We’re here, and we’re working. Things will continue to move more slowly than you’re used to, whether because some are out of the office on vacations, or because it takes longer internally for us to check in with each other since we’re not all in the office. Thank you for understanding. We’re eager to continue to find better and better ways to serve you.

We’ve attached the 2nd Quarter JGC Wealth Management letter for you to review.

If you haven’t received a paper copy of your tax return and you’d like one, please get in touch and we’ll be happy to print that off for you. If you’ve changed your mind and are happy with a PDF copy of your return on the portal, please shoot us an email and let us know to save a tree.

You can always contact us by emailing [email protected]. We’ll direct your email to the best person to handle your request.

Stay Safe; Stay Connected
If you have any needs, please reach out to us. We may have resources or be able to connect you to someone who can help.

Connection challenge: Salem Electric put out this scam alert. Criminals are always looking for ways to make money from people’s fears and other strong feelings. COVID-19 is just the next opportunity for scammers. Here are some things to watch out for. It’s good to get someone you know involved who is comfortable verifying websites. Never make donations via a link in an advertisement since that can be easy to spoof. Go directly to the website where you’d like to donate. When in doubt, get someone to help you verify, and if you know of someone who is likely to be targeted, be sure to have a conversation with them about what to look out for.

Local opportunity of the week: In these troublesome times, many of us are looking for ways to make a difference, even if it’s small. Take gloves and a bag on your evening walk and see how much trash you can pick up. Send an encouraging note to your local public servant. Here is a list of local charities you might want to look through as well.

When you’re looking for experienced CPAS in Salem or Keizer, Oregon call the experts at Johnson, Glaze & Co.

07/28/2020

Masks are required pretty much everywhere in Oregon, so we’re doing our best to comply. We’ll ask you to answer some screening questions before coming by, and wear a mask if you need to drop in or sign something. We’re still keeping the office doors closed and scheduling as many appointments as possible via Microsoft Teams video chat.

We’re happy to be past the July 15th deadline for tax filing. You may have noticed that many people were out of the office this week or locked into training. It’s been a very long 6 months, as we know it has been for all of you. We’re going to be rotating staff through some time off, but we’re just a little over 1 month from our corporation due date cutoff and 2 months from the extended 1040 due date cutoff.

If you have information to bring by or send via the portal, please go ahead and get it to us. We operate on a first in: first out basis, so the sooner we get your info to the office, the sooner we can take care of getting your return filed.

Please visit our website - www.johnsonglaze.com, and share it with friends who may need assistance as well. You can also find us on Facebook. We share this same info there, and it’s an easy way to share good info with friends and family.

What We Know
We’ve heard from a few of you about getting our help with form 3508 – filing for PPP Loan forgiveness, and engagement agreements are on their way to you.

We understand that assistance you need with this application whether the full application or the EZ, may vary from pulling a few reports to consulting about the most advantageous way to spend the money and have the loan forgiven. We’ll charge for this based on the time you need from us in this case. Let us know if you anticipate needing our help, and we’ll get you an engagement agreement.

There are still PPP Loan funds available, and the application deadline was extended to August 8th. If you’re just now feeling the weight of COVID-19 implications to your business, we encourage you to talk to your bank about what it would take to apply. We’re happy to help pull reports they might need from you.

2020 RMDs (and in some cases 2019): - repeating from last time because this deadline is approaching quickly!
Required distributions from IRAs are not required this year. Distributions that were already taken may be returned by August 31st, 2020. Even payments that were taken out in multiple, smaller amounts (for the purpose of fulfilling the RMD) may be returned in many cases.

2019 RMDs that were required to be made between January 1, 2020 and April 1, 2020 (because of a participant’s April 1, 2o2o eligibility date) are also not required this year. This also includes portions of distributions that were treated as ineligible for rollover because they were considered fulfillment of the RMD. Repaid RMDs will be treated as a rollover for purposes of the code, but not for purposes of fulfilling the “one rollover per 12-month period” limitation.

If you have taken an RMD this year, and you don’t need it to live on, give us a call to see whether it makes sense to return it to your plan. Please call us if you have questions.

What We Don’t Know
We’re going to keep following what Congress is up to. In an election year, there’s no telling what back-and-forth will happen before we get some further guidance, law changes, assistance for small business or potential stimulus checks. Everyone seems motivated to do something; the question will be whether they can agree on what that looks like.

As it applies to PPP Loan forgiveness, the guidance on what constitutes COVID-19 related business interruptions is very vague. That may turn out to be a good thing. Current best practice in most cases is to hold off until the full 24 weeks have passed to gain as many options toward forgiveness as possible and get numbers of employees back up. There are differences. Please talk to your bank, and talk to us about what the process is.

What We’re Doing
We’ll be rotating through some time off and continuing education in this brief quieter spell that we have. We’re looking forward to knowing that staff has some time to spend with their families and get out and enjoy the weather while it’s still good. Thank you for your patience as we continue to adjust to this crazy year, still making every effort to meet your needs as well as the needs of our staff here.

We’re still in process on printing returns that were filed before now. If you’ve changed your mind and are happy with a PDF copy of your return on the portal, please shoot us an email and let us know to save a tree.

You can always contact us by emailing [email protected]. We’ll direct your email to the best person to handle your request.

Stay Safe; Stay Connected
If you have any needs, please reach out to us. We may have resources or be able to connect you to someone who can help.

Connection challenge: Older family members, neighbors or friends who have become each other’s caregiver by default may be extra exhausted without their normal social outlets and support system. Don’t forget to have real conversations with the caregivers you know about how they’re doing and how you can help!

Local opportunity of the week: Marion/Polk Food Share has this link to all of their partners who provide food boxes in our area. If you know someone who has a need, please share this info with them. If you have been looking for a way to give, these food boxes and delivery services have all been impacted by the greater needs during COVID-19 restrictions, and need additional donations as well as additional volunteers.

Take care!

When you’re looking for experienced CPAS in Salem or Keizer, Oregon call the experts at Johnson, Glaze & Co.

07/17/2020

Tax Filing Due Date - Finally

You can make any tax payments on the IRS website and/or on the Oregon Department of Revenue website. You can use our portal or drop your documents through our mail slot any time. We strongly recommend that you make payments online. We have heard news reports of checks to the IRS not being cashed in 2-3 months.

We’re attempting to keep fresh information on our website www.johnsonglaze.com.

New staff bios and photos coming soon. Please feel free to share the site as a resource to others as well.

What We Know
Applications are out for PPP Loan Forgiveness:

Criteria to use the 3508EZ form fall into 3 basic categories. Read the full criteria to determine, or give us a call to discuss engaging our assistance with applying for PPP Loan Forgiveness.
1. Independent contractor or sole proprietor who had no employees
2. Borrower did not reduce wages of employees by more than 25% AND did not reduce number of employees or average paid hours. (some exclusions apply).
3. Borrower did not reduce wages by more than 25% AND was unable to operate at the same level of business activity as before February 15th, 2020 due to COVID-19 restrictions.

We understand that assistance you need with this application whether the full application or the EZ, may vary from pulling a few reports to consulting about the most advantageous way to spend the money and have the loan forgiven. We’ll charge for this based on the time you need from us in this case. Let us know if you anticipate needing our help, and we’ll get you an engagement agreement.

2020 RMDs (and in some cases 2019): Required distributions from IRAs are not required this year. Distributions that were already taken may be returned by August 31st, 2020. Even payments that were taken out in multiple, smaller amounts (for the purposed of fulfilling the RMD) may be returned in many cases. 2019 RMDs that were required to be made between January 1, 2020 and April 1, 2020 because of a participant’s April 1, 2o2o eligibility date) are also not required this year. This also includes portions of distributions that were treated as ineligible for rollover because they were considered fulfillment of the RMD. Repaid RMDs will be treated as a rollover for purposes of the code, but not for purposes of fulfilling the “one rollover per 12-month period” limitation.

What We Don’t Know
There has been some discussion of further stimulus payments, but we do not yet have a clear idea of when those may become available or whether Congress will be able to work together smoothly enough to get something out to taxpayers.

We’ll keep reading, researching and staying on top of the changes as much as possible.

We are not able to tell you how to lawfully apply leave and pay to employees. We will refer you to an employment attorney or service such as Cascade Employers Association for help. As we start working through 2nd quarter payroll reports, we will need to ask you about the impact of COVID-19 restrictions on your business. Unfortunately, we won’t be able to determine whether you qualify, but will take your word for it on the forms.

What We’re Doing
We’re working long days in this final stretch of tax season for us. We know the phone is not answered as quickly as you’re used to, and questions, messages and emails take longer to get a response. We’re not able to poke our head in someone’s office for a quick answer. Everything takes longer with the distance, work from home limitations and modified schedules. Thank you for understanding and working with us on all the changes as we continue to make every effort to meet your needs as well as the needs of our staff here.

We’re still in process on printing returns that were filed before now. We’ve taken a break to focus on returns that are going on the portal for people who still need to review and sign before the 15th. We will do more printing after next Wednesday’s deadline. We do encourage you to utilize the portal to download a PDF copy of your return and make any payments you need to make online by July 15th. Please give us a call if you have any questions about how to do so. If you’ve changed your mind and are happy with a PDF copy of your return on the portal, please shoot us an email and let us know to save a tree.

You can always contact us by emailing [email protected]. We’ll direct your email to the best person to handle your request.

Stay Safe; Stay Connected
If you have any needs, please reach out to us. We may have resources or be able to connect you to someone who can help.

Connection challenge: Have you found a creative way to connect with family or neighbors through physical distancing and the “stay home” order that is still in place? Tailgate parties, distanced “bring your own ___” picnics, driveway or virtual happy hours in your neighborhood. Let us know what has worked for you to keep that human connection in place!

Local opportunity of the week: Salem Chamber has put together a guide to reopening. This is some practical advice on how to the phase 1, 2 and 3 guidelines apply to specific types of businesses.

Take care!

06/05/2020

Senate Unanimously Passes H.R. 7010

House Resolution 7010 passed the Senate yesterday evening and heads to the president’s desk today for signature. The resolution is designed to make it much easier to apply for Paycheck Protection Program Loan forgiveness. See our What We Know and What We Don’t Know sections below for an overview of the changes. There will be more information coming as the SBA releases its interpretation of the new law and FAQs explaining it.

In the meantime, mortgage interest rates hit a new low yesterday. If a refinance makes sense and you’re in a position to do so, this could be a good time to quickly reach out to your mortgage broker.

There is also still money left in the PPP Loan program, so if you haven’t applied, you might consider it. If partnerships didn’t originally include self-employed owner income when applying, they can apply a second time for a PPP loan.

We are keeping fresh info on our website https://www.johnsonglaze.com, and we encourage you to check in for updates and keep it as a resource.

We require a minimum of 3 weeks to process a tax return, so we need your tax return info no later than the 3rd week of June in order to file by July 15th without extending until October. You can use our portal or drop your documents through our mail slot any time. If you have 2nd quarter estimate questions, please email [email protected]. You can make any tax payments on the Oregon Department of Revenue website.

What We Know

SBA Loan Forgiveness rules are changing. Here’s what we know from the resolution that will likely become law today.

The loan forgiveness period has been extended from 8 weeks to 24 weeks – or Dec. 31st – whichever comes first. This extends the time to spend the money on qualified expenses and greatly increases the likelihood that most recipients will find their loans fully forgivable. Businesses that received funds before this new law goes into effect and have already spent the funds may still apply at the end of the 8 weeks.

Loan recipients may spend up to 40% of the loan on non-payroll costs (up from the previous 25%). However 60% of the funds must be spent on payroll costs, meaning at least 60% of the loan must be spent (and on payroll costs) in order for any of the loan to be forgivable – as the new law is currently written.

Businesses will have longer to bring their FTE count back up to February 15th (or prior year) numbers. Businesses that have not been able to fully function and have not been able to bring employees back to work now have until Dec. 31st, 2020 to do so. Businesses that must keep their doors closed or have modified operations due to COVID-19 restrictions will have further relief from the requirements to rehire employees. The employee count will not affect loan forgiveness. There are specific qualifications for this relief.

Contrary to original legislation, a borrower of a PPP loan may defer all of its 2020 employer Social Security tax burden into 2021 and 2022. This is true even if the loan is forgiven before Dec.31st, 2020.

If you are not a current periodic accounting client, talk to us about what it would look like to have us in your books on a monthly or quarterly basis, keeping the numbers clean and the decision-making tools in front of you. Being able to make informed choices and provide relevant reports in real time could be life-changing for your business.

If you have not received your economic impact payment, you can track its ETA on the IRS website.

There may be some tax savings available to you by making a contribution to an IRA or SEP-IRA before July 15th. If you haven’t filed your tax return yet, this is something to consider.


What We Don’t Know

Unclear aspects of H.R. 7010:

Per employee compensation limits [eligible for forgiveness] seem to have been raised from 8/52 x $100,000 = $15,385 to 24/52 x $100,000 = $46,153. But this has not been spelled out in the law.
The assumption would be that owner compensation limits would also rise on the same ratio, but again, this has not been specified.
New laws would seem to indicate that Schedule C business owners will have no trouble meeting new qualifying standards, but the resolution does not specifically address this.
There is no discussion of whether new borrowers will need to wait until the end of their 6-month spending period to apply for forgiveness. It seems likely that if companies have spent all the money in a shorter time, they would want to apply for forgiveness sooner than 24 weeks. Waiting until Dec. 31st to apply for forgiveness could create some difficulty, especially if expenses paid with these funds remain non-deductible.
We’ll keep you updated as we find out more about each of these items.

While the COVID-19 curve seems to be more or less flat, that means new cases are continuing at a fairly steady rate, and no one knows what the effects will be of further opening the country. Governor Brown has said that large gatherings will not likely be allowed until at least the end of September, but criteria for Phase 3 in Oregon is, “Mass gatherings such as major concerts or sporting events with live audiences will require a reliable treatment or vaccine to be available.” There is no way of knowing when or if that will take place. This puts a light of caution into every decision we make in the future. As we discuss reopening in the future, we want to take careful steps to put rational safety measures in place that will give peace of mind and reasonable safeguards for clients and staff. This will take some time.

Some companies are having a hard time getting employees to come back to work because people feel safer at home and are making more money on unemployment. On the other hand, in Oregon, the unemployment division is struggling to keep up and has faced many challenges. HR and employment issues are beyond our expertise. Please reach out to an employment lawyer or to Cascade Employers Association for COVID-19 leave questions, hiring and firing questions and the most updated information about what is required of you as an employer.

What We’re Doing

As we convert our phones to an internet based system, you may see us calling from various 503 area code numbers. When our transition is complete, we should be able to call you from anywhere we’re logged on, and it should show up as Johnson Glaze.

We have begun sending out paper copies of your tax returns. This process will take time. If you’ve changed your mind and are happy with a PDF copy of your return on the portal, please shoot us an email and let us know to save a tree.

You can always contact us by emailing [email protected]. We’ll direct your email to the best person to handle your request.

Stay Safe; Stay Connected

If you have any needs, please reach out to us. We may have resources or be able to connect you to someone who can help.

Connection challenge: As the country reels from injustices and misunderstandings, may we remind you to be patient with those who may have differing views. It’s hard to sit down over a cup of coffee and talk things out when we’re supposed to social distance. It’s disappointing to think that we’re not at a place where the default reaction in every situation would be kindness and grace, but if you look around at your neighbors and spend time hearing their viewpoint, you’ll likely find they’re struggling with the same overwhelmed disappointment. Be the blessing you want to encounter! Smile over your mask. Talk to people in the grocery store, let someone go ahead of you in line, and be patient.

Local opportunity of the week: Family Building Blocks is a Mid-Valley organization that helps at-risk families stay together. They provide training, home visits, relief care and other services to families to help them learn how to be healthy and safe. Like many not-for-profits, they face challenges of fund raising and augmented procedures as well as increased need in the community during these difficult times. Check out ways you can give. Right now, they are in the process of getting ready to offer relief nursery services under new guidelines, which will require additional staff and resources to keep to smaller sized groups and more strict sanitation recommendations.

Take care!

Johnson Glaze & Co., P.C. and

JGC Wealth Management