Author Archives:
Carey Dagenhart

Atlanta Employers with tipped employees on the payroll must be mindful of minimum wage requirements which can become complicated when an employee’s job consists of multiple duties. The Department of Labor (DOL) 80/20 rule provides compliance requirements that businesses must follow in such situations. As of December 28, 2021, the rules changed which will now require organizations to pay careful attention to the type and duration of work performed by certain employees. This change will force affected businesses to review and adjust policies to ensure compliance with the new rules.

COVID-19 may not have been unexpected in 2021, but it continued to shape the year for almost everyone. To incentivize employers to offer paid time off for affected employees, legislation in March 2020 provided tax credits for paid sick and family leave. In the first six to eight months, it’s estimated that six to eight million U.S. workers took advantage of the expanded leave if they were unable to work or telework. Now, the IRS has issued detailed reporting guidance for employers that offered paid sick, and family leave this year. Since the period for offering paid leave is coming to an end on September 30, 2021, Atlanta businesses have time to calculate accurate reporting data and begin preparing W-2s to be issued in January of next year.

Many Atlanta area businesses are continuing to recover from the financial challenges created by the pandemic. Despite the obvious increase in demand for many products and services, many businesses continue to struggle financially. While there are many concerns, a primary issue is the inability to satisfy the deferred and short-term debt obligations taken to survive the early days of the pandemic. When combined with the dwindling number of federal COVID-19 relief programs, it is easy to understand the depth of the issue.

During the pandemic, many Atlanta businesses became familiar with the COVID-19 relief options offered through the Small Business Administration (SBA). This included the Paycheck Protection Program (PPP), Economic Injury Disaster Loans (EIDL), and the Employee Retention Tax Credit (ERC). As the recovery continues and these programs end, many are looking for new ways to jump-start growth through new business opportunities. While the dynamics have changed, the SBA offers other programs such as the SBA 8(a) Business Development Program which can help qualifying businesses compete for federal contracts.

For Atlanta businesses hit hard by the pandemic, the COVID-19 relief programs available through the Small Business Administration (SBA) have provided a desperately needed lifeline. This reality is reflected in the data which shows just how many businesses and organizations received financial assistance. Since the Paycheck Protection Program and Restaurant Revitalization Fund are now closed, many are looking towards the Employee Retention Tax Credit (ERTC) for additional relief.

How is the IRS doing? According to key leaders on the inside, not so good. The Treasury Inspector General for Taxpayer Administration’s (TIGTA) interim report combined with the National Taxpayer Advocate's midyear report highlighted a federal agency that was already struggling to keep up … and then COVID-19 hit. Subsequent rounds of stimulus legislation and changing tax laws created what Erin Collins, National Taxpayer Advocate, called a “perfect storm.”

The persistent COVID-19 pandemic continues to create economic and financial challenges for government agencies, businesses, organizations, and individuals. While there has been a reduction in the number of new cases, thanks in part to the vaccine, many of the protective restrictions across Atlanta remain. It is against this backdrop that President Biden signed the American Rescue Plan Act of 2021 (the Act) into law.

To the relief of many Atlanta area businesses and nonprofits another round of COVID-19 financial relief is coming, but final details on what and who will be covered and to what extent still linger. Congress is debating the specifics of what will be included in this latest round of relief; although after the Senate Democratic majority’s use of a budget resolution to pass muster, it is not a question of if the legislation will get passed, but when. Given the length and complexity of what is being called, the American Rescue Plan, many are wondering what type of relief is expected to be included when it is passed by Congress and signed into law.

U.S. independent auto dealerships started 2020 with a measured and slightly positive outlook and will be ending the year like most other industries: down. The coronavirus pandemic has shattered and reshaped outlooks for practically every sector, including auto dealerships. That is not to say that 2020 has not been without its opportunities, however, as there are several positive forward-looking trends that spell opportunity.

The impact of the COVID-19 pandemic has resulted in many changes for Atlanta area businesses. It started with the abrupt government orders around business closures and stay at home orders and transitioned to re-opening guidelines that mandate both employee and customer safeguards (facemasks, social distancing, and sanitizers). There are several well-documented loan programs such as the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) designed to help businesses financially thrive.