Last week we discussed Colorado sick pay requirements which led to a few questions about remote employees. If you have remote employees working from an out-of-state location, you may be subject to certain laws in both states. Please be sure to connect with your insurance broker to ensure you have the proper worker’s compensation and liability coverage, alert your payroll processing company so they withhold the correct State taxes, and talk to your employment attorney about employee benefits. Reach out to us if you are uncertain about your particular situation, and we can get you pointed in the right direction.
Digital Transformation Revisited – Budget time!
Covid-19 forced businesses to embrace sweeping changes at a remarkable pace, and employers have faced new and unexpected challenges from these changes. Management has turned to innovative benefits and enticements to keep employees engaged. We know these benefits and enticements come at a cost to the employer, so this is a great time to evaluate your budgets and costing strategies to ensure you’ve captured any additional costs in your invoices. If you need any assistance with costing strategies please reach out.
Extensions and Due Dates
If you are on extension for 2021 taxes, but you have everything ready to go, please go ahead and email or call so that we can get started. We can get very busy in September and October and would love the opportunity to get your taxes wrapped up over the summer.
ERTC or the Employee Retention Tax Credit
In 2020, we talked a lot about various Covid-19 relieve platforms available to businesses and employers. One of the greatest incentives available to employers is the ERTC or Employee Retention Tax Credit which reimburses employers for retaining employees through the lockdown periods in 2020 and 2021. The ERTC is calculated through a worksheet process and then claimed by filing Form 941-X within the period of limitations available to the employer specifically for credit or refunds. This period is generally 3 years from the date of original filing, however this is not always the case, so we recommend that you file for any ERTCs as soon as possible. If you have not yet pursued this credit, please reach out. We can get you connected with the right people to see if it a good opportunity for you. This credit is available to almost all employers, and generally includes small businesses, non-profit organizations, schools, daycare agencies and child-care centers.
Mileage Rate INCREASE
The Internal Revenue Service announced an increase in the optional business mileage rate for the final 6 months of 2022, increasing the rate by 4 cents to 62.5 cents per mile. This is important to our business owners and employees because you will need to provide separate data for each time period. Please take a minute to note your total business miles through June 30th so that we can easily report your miles for both mileage periods in 2022.
Please contact our office today at 303-988-5648 to discuss your specific situation. As always, planning ahead can help you maximize your family’s financial situation and position you for greater success.
Kim Hitchcock, CPA
KIM HITCHCOCK is a CPA and the owner of McNurlin, Hitchcock & Associates, PC.
Kim has worked in public accounting, assisting individuals and small businesses for more than 26 years. She has traveled from Maryland, to Alaska, to Colorado where she now lives with her husband and daughter. Read more about Kim and the members of her accounting team.