Tax Credits for Employers Available until September 30, 2021
The American Rescue Plan Act (ARPA) of 2021, signed on March 11, 2021, extends the expiration date of the employment tax credits under the Families First Coronavirus Response Act (FFCRA) until September 30, 2021. Employers are no longer required to provide emergency …
Best Practices for Compensating Delivery Drivers and Independent Contractors
Sykes and Company, P.A. recommends delivery drivers be paid as W-2 employees and not as independent contractors. We base this recommendation on three factors per IRS regulations – Behavioral Control, Financial Control and Relationship of the Parties. The Behavioral Control encompasses facts that demonstrate …
Congress Approves $900B Bill for COVID Relief, Awaiting President’s Signature
NOTE: This article was written prior to President Trump signing the bill. Congress approved a $900 billion bill for additional COVID relief. Below are key takeaways pharmacy owners should be mindful of as they do last minute planning. Paycheck Protection Program (PPP) …
Best Practices for Pharmacists’ Compensation
Sykes and Company, P.A. recommends pharmacists be paid a weekly or biweekly salary, not an hourly wage, and they should be exempt from overtime. Pharmacists may be exempt from overtime under the Professional Exemption, as a Learned Professional. To qualify for the …
How the Cash Accounting Method Can Optimize Tax Savings
Numerous funding programs issued in 2020 have provided independent pharmacies with the opportunity to optimize cash flow and tax savings. After many pharmacies received Paycheck Protection Program (PPP) relief loans, Small Business Administration (SBA) debt relief and Economic Injury Disaster Loan (EIDL) …
Tax Impacts of Accrual vs. Cash Accounting Methods
Have you considered the potential tax savings for your pharmacy if you changed from the accrual accounting method to the cash accounting method? It is one of the most noteworthy tax reform changes for pharmacies under the Tax Cuts & Jobs Act …
CARES Act and Employer-Provided Education Assistance
The CARES Act added a provision to an existing code section that allows an employee to receive, on a tax-free basis, up to $5,250 each year from his or her employer for expenses associated with a “qualified educational assistance program”. This assistance …
Update to the HHS Provider Relief Fund
Pharmacies should be aware that the application deadline for the Phase 2 General Distribution Funding has been extended yet again to September 13, 2020. The General Distribution Funding was enacted through the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the …
Looking Ahead – PPP Loan Forgiveness
The Paycheck Protection Program (PPP) application was relatively easy – send the bank documentation, certify the information is correct and that your pharmacy has been negatively impacted by COVID-19, calculate your “payroll costs”, which was anyone’s guess, and complete the three-page application. …
Federal Reserve – Main Street Lending Program
Another provision within the CARES Act is the Main Street Lending Program which is designed for small and medium-sized businesses. This program is different from the Paycheck Protection Program, or PPP, that has taken the small business community by storm these past …