Gross Mendelsohn Blog | Government Contractors

Construction & Real Estate | Government Contractors

3 Ways Construction Contractors Can Prepare for Their First Audit

By: Marie Calabrese January 22, 2021

Maybe you have a new contract that requires an audit or maybe your bank requested audited financial statements. If you’re a construction contractor, a first-time audit can seem overwhelming and daunting. Because your work in process schedule is crucial to your company’s revenue recognition, we’ve identified the top three things contractors can do when preparing their WIP schedule as part of the financial statement audit.

2021 Payroll Update

By: Dawn Ebeling January 21, 2021

Social Security and Medicare tax As of January 1, 2021, the maximum amount of annual earnings subject to Social Security increased to $142,800 (from $137,700 in 2020). There is no limit on the amount of earnings subject to the Medicare tax.

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Maryland’s Governor Proposes $1 Billion COVID-19 Relief Package

By: Scott Handwerger January 13, 2021

With the opening of Maryland’s General Assembly today, Governor Larry Hogan is expected to introduce the state’s latest relief package, called the $1 Billion RELIEF Act of 2021. He outlined the plan at a press conference earlier in the week. Hogan is asking state lawmakers to take quick action on this legislation, which includes actions to help Maryland families, small businesses and those who have lost jobs as a result of the pandemic. If enacted, this emergency legislation would support small businesses with sales tax credits, extend unemployment tax relief for small businesses, repeal income taxes on state unemployment benefits, safeguard Maryland businesses against tax increases, and provide direct stimulus payments for low- to moderate-income Marylanders. Let’s look more closely at some of the provisions in the relief package.

Deductibility of Meals Provided by Restaurants Increases to 100% in 2021 and 2022

By: David Lanchak January 12, 2021

There’s a win-win for business taxpayers and restaurants in the latest round of stimulus legislation, known as the Consolidated Appropriations Act, 2021. Under the new legislation, business meals provided by restaurants in 2021 and 2022 are now 100% deductible. Previously, the deduction of food and beverage expenses associated with operating a business was limited to 50%. The new 100% deduction applies to meals in a restaurant, and takeout and delivery meals provided by a restaurant. Let’s dig into the specifics.

PPP2 Loans: What to Know About Round 2 of the Paycheck Protection Program

By: Ernie Paszkiewicz January 11, 2021

At the end of 2020, Congress passed and President Trump signed a new law that provides for additional relief related to the COVID-19 pandemic. The Consolidated Appropriations Act, 2021 (CAA, 2021) includes a second draw of Paycheck Protection Program loans (PPP2 loans) and it also finally overruled the IRS and allows businesses to deduct ordinary and necessary expenses paid from the proceeds of PPP loans. Let’s take a look at who’s eligible for a PPP2 loan, the terms of the loans and when to apply.

Maryland Taxpayers Are Granted Tax Filing and Payment Extensions

By: Scott Handwerger January 07, 2021

Maryland Comptroller Peter Franchot announced extended filing and payment deadlines for certain state business and individual taxes and quarterly estimated income tax returns and payments.