Guest Column June 13, 2020
AUSTIN, TEXAS, UNITED STATES, June 11, 2020 /EINPresswire.com/ — Small Businesses Can End Up On The Winning Side Following COVID
Pierre Accounting founder advises national audience on how tax laws can benefit small businesses that take advantage of them
Small businesses, currently struggling due to the economic uncertainty and dramatic consumer changes due to COVID-19, can win in the long-run, according to Pierre Accounting Founder and CPA Eric Pierre.
In a national interview on America’s Voice Live in May 2020, Pierre shared that businesses that can endure the short-term impacts of the pandemic may actually win in the end. Because of the favorable tax laws passed as a result of the economic stimulus package, businesses can take advantage of tax savings.
“The government is giving some unique tax breaks under the CARES Act. One of the big bombshells was that, under the Trump Tax law, net operating losses were suspended. But now, you can carry that back five years, starting December, 31 2017 to January 1, 2021,“ Pierre said.
“If you made money in the past, and you have a loss because of the current situation, now you can go back and get that money that you paid to generate cash flow.”
Pierre explains that businesses who have a net operating loss in the current or next tax reporting period can use it to offset taxable income, which reduces the tax liability of the business.
In addition to changes in how taxes are impacted by net operating losses, small businesses can also:
Defer payroll taxes from March 2020-December 31, 2020
Credit for paid sick leave, applied to employment wages
With Congress making changes to the PPP (Payment Protection Program) of the CARES Act, this payroll tax deferral was not previously available to businesses who received a PPP loan who would also seek forgiveness. However, in early June, lawmakers adjusted the program, allowing businesses to defer payroll taxes without losing forgiveness of indebtedness under the PPP.
Pierre recommends all businesses consult a qualified CPA to help navigate changes in the tax laws and how they can best take advantage of available tax strategies.
About Eric Pierre: Eric Pierre is the man behind Pierre Accounting. Eric graduated from Stephen F. Austin State University with a masters in professional accountancy and a bachelor’s degree in business administration in accountancy, with honors. Not long after graduation, he entered the financial industry and began to develop what would prove to be a passionate and prolific career. In 2006, he received his CPA license and founded Pierre Accounting soon thereafter. Since then, Eric has spent more than a decade delivering and perfecting the service that places his CPA firm in a world all its own. He is currently a licensed CPA in Texas and California.
About Pierre Accounting: Pierre Accounting is a full-service CPA firm. In addition to tax preparation and planning services, we offer personalized business and financial guidance to each and every one of our clients. Whether you’re an individual looking to start a new business, or a company wanting to create tax-free revenue streams, Pierre Accounting is the CPA firm to meet and exceed all your financial needs and dreams. Visit pierreaccounting.com.