KAW Solutions

KAW Solutions

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This week in our QuickBooks cla ss I taught a nifty trick th at I learned from Penny Lane on h ow to job cost payroll from a 3 rd party provider. Also taught h ow to calculate labor burden.

https://docs.google.com/document/d/186H1l6TNXCP3Um_W3taoCtBp-itm407m/edit?usp=sharing&ouid=114306120750495925194&rtpof=true&sd=true

https://docs.google.com/spreadsheets/d/1P1urjbM3GiuHtL42RIR5q0PHvTu0j_cQ/edit?usp=sharing&ouid=114306120750495925194&rtpof=true&sd=true
As we wrap up 2020, we' re getting lots of questions on t he PPP forgiveness. We're working wi th our CPA's to determine the t ax implications of the PPP loan. Wh at we're hearing is that the P PP loan is not taxable income, b ut the associated expenses are not deductib le. This essentially makes the P PP loan taxable income. I personal ly think this is going to be a hu ge hardship on a lot of business es, so we'll see it if ge ts changed. Unfortunately, we need to be prepar ed for it not changing.

In Summary:

1. We ne ed to account for the PPP lo an as income for 2020….even if the re is no loan forgiveness by 12/31/20 20. ..this is if loan forgivene ss is expected. By “account f or it”, I mean making sure th at we pay in tax on th is as if it is taxable income.

2.
If there is no further guidan ce on this by 3/15 (the d ue date of the business returns), we wi ll likely want to file an extensi on ….in the hope that the I RS changes its position. The extensi on is instead of filing with it bei ng taxable….and then having to amend t he return to remove this “loan” as income.

3.
If the IRS later says th at this PPP loan is not taxab le, then we will file and recei ve a refund.

Implications
The IRS has provided mo re clarity on the treatment in the se new pieces of guidance. In a stateme nt issued with the guidance, the Treasu ry Department noted: “If a business reasonab ly believes that a PPP loan wi ll be forgiven in the future, expens es related to the loan are n ot deductible, whether the business has fil ed for forgiveness or not. Therefore, we encoura ge businesses to file for forgiveness as so on as possible.”
The determination of whether a taxpay er has a “reasonable expectation” of forgivene ss is a question of fact. Howev er, the IRS noted in its ruli ng that the CARES Act and supporti ng loan forgiveness application procedures published by t he SBA provided loan recipients, like tho se in Situations 1 and 2, wi th “clear and readily accessible guidance” to app ly for and receive loan forgiveness.

It ’s now left to see if Congre ss will pass legislation to change th is result. After Notice 2020-32, members of bo th parties announced support for passing legislati on to change this treatment so th at the loan forgiveness did not resu lt in disallowed deductions. Several bills ha ve been proposed, including provisions in so me of the stimulus legislation, but nothi ng has passed. Today, the Senate Committ ee on Finance released a bi-partisan stateme nt saying they believed Treasury “misses t he mark” on this guidance and th at they will continue their efforts to “clari fy in any end-of-year legislation the intend ed relief in the CARES Act...”

Whi le it is unclear if Congress wi ll ultimately act, either during the lame-du ck period or after the new Congre ss is installed in January, taxpayers shou ld consider extending their 2020 returns to s ee if action is taken.
Whew! In under the wi re - good for two more yea rs as a Certified Flight Instructor! Harde st and most nerve
wracking part is completi ng the government paperwork correctly!
Virginia Announces $70 Million Rebuild VA Econom ic Recovery Fund for Small Businesses, Nonprofi ts Impacted by COVID-19

Rebuild VA Grant Applicatio ns Open – click the link f or more info:
https://www.governor.virginia.gov/newsroom/all-releases/2020/july/headline-859659-en.html
(For Business in VA w ho have not received EIDL or P PP)
I was honored this past weeke nd to recognized for my work wi th the Youth Foundation, teaching young ki ds to fly. I love worki ng with those kids - they a re go getters!!
Did you file an extension f or your business taxes? The ne xt deadline is October 15. I thi nk most of us took advantage of t he first automatic extension from the norm al deadlines and then we were annoy ed at ourselves for missing the Ju ly 15 deadline! We've all be the re! But you can easily g et this done by end of t he month. Take just a litt le chunk - about 30 minutes - ea ch day. Start with the t op of your balance sheet, reconcile ea ch account. In 30 minutes a d ay - you'll be surprised how quick ly you can get through this. Th at said, if you ever need us, we're always happy to help.
Did you receive a PPP lo an? A lot of clients a re asking to begin the loan forgivene ss process. They’ve seen the lo an application put out by the S BA and want to get started on t he forgiveness application. However, the forgivene ss application put out by the S BA is simply a guideline for t he banks to use. The ban ks will each have their own proce ss. We have not yet se en the banks release any official repayme nt applications. If you ha ve any questions on when this mig ht happen – it would be be st to get in touch directly wi th your lender. Hope this hel ps!

We are a full service bookkeepi ng and QuickBooks consulting firm committed to helpi ng the small businesses of America succe ed in their pursuits.

Founded in 2006 & located in t he heart of historic Leesburg, Virginia, K AW Solutions is a QuickBooks consulting a nd full service bookkeeping firm. KAW Solutio ns specializes in all aspects of bookkeepi ng, including general ledger, accounts payable, accoun ts receivable, taxes, payroll, and cash fl ow management, as a key partner to o ur client's accounting team. Our consultative approa ch enables our s

Operating as usual

Calculating Labor Burden.xlsx 09/05/2021

Calculating Labor Burden.xlsx

This week in our QuickBooks cla ss I taught a nifty trick th at I learned from Penny Lane on h ow to job cost payroll from a 3 rd party provider. Also taught h ow to calculate labor burden.

https://docs.google.com/document/d/186H1l6TNXCP3Um_W3taoCtBp-itm407m/edit?usp=sharing&ouid=114306120750495925194&rtpof=true&sd=true

https://docs.google.com/spreadsheets/d/1P1urjbM3GiuHtL42RIR5q0PHvTu0j_cQ/edit?usp=sharing&ouid=114306120750495925194&rtpof=true&sd=true

Calculating Labor Burden.xlsx Sheet1 Labor Burden Worksheet Assumptions,FICA,7.65% FUTA,0. 60% SUTA,2% Name,PTO Days,Health,Retirement,Worker's Comp,Hourly Rate,FICA,FUTA,SUTA,Vacation,Health,Retirement,Worker's Comp,Tot al Labor Burden Employee 1,10,350,3.50%,13%,32,$2.45,$0.19,$0.64,$1.28,$2.02,$1.12,$4.16,$43.86 Employee 2 ...

07/12/2021

Income For Mom

Income For Mom Join our growing community to lea rn how you can build a six-figu re income, working around your children's nee ds and schedule.

07/12/2021

Income For Mom

Income For Mom Join our growing community to lea rn how you can build a six-figu re income, working around your children's nee ds and schedule.

05/31/2021
Path To Powers World Summit 12/04/2020

Path To Powers World Summit

Path To Powers World Summit The power to move from strate gy to implementation to unlock resilience, communi ty, action, and create success in busine ss, health, and mindset.

11/30/2020

As we wrap up 2020, we' re getting lots of questions on t he PPP forgiveness. We're working wi th our CPA's to determine the t ax implications of the PPP loan. Wh at we're hearing is that the P PP loan is not taxable income, b ut the associated expenses are not deductib le. This essentially makes the P PP loan taxable income. I personal ly think this is going to be a hu ge hardship on a lot of business es, so we'll see it if ge ts changed. Unfortunately, we need to be prepar ed for it not changing.

In Summary:

1. We ne ed to account for the PPP lo an as income for 2020….even if the re is no loan forgiveness by 12/31/20 20. ..this is if loan forgivene ss is expected. By “account f or it”, I mean making sure th at we pay in tax on th is as if it is taxable income.

2.
If there is no further guidan ce on this by 3/15 (the d ue date of the business returns), we wi ll likely want to file an extensi on ….in the hope that the I RS changes its position. The extensi on is instead of filing with it bei ng taxable….and then having to amend t he return to remove this “loan” as income.

3.
If the IRS later says th at this PPP loan is not taxab le, then we will file and recei ve a refund.

Implications
The IRS has provided mo re clarity on the treatment in the se new pieces of guidance. In a stateme nt issued with the guidance, the Treasu ry Department noted: “If a business reasonab ly believes that a PPP loan wi ll be forgiven in the future, expens es related to the loan are n ot deductible, whether the business has fil ed for forgiveness or not. Therefore, we encoura ge businesses to file for forgiveness as so on as possible.”
The determination of whether a taxpay er has a “reasonable expectation” of forgivene ss is a question of fact. Howev er, the IRS noted in its ruli ng that the CARES Act and supporti ng loan forgiveness application procedures published by t he SBA provided loan recipients, like tho se in Situations 1 and 2, wi th “clear and readily accessible guidance” to app ly for and receive loan forgiveness.

It ’s now left to see if Congre ss will pass legislation to change th is result. After Notice 2020-32, members of bo th parties announced support for passing legislati on to change this treatment so th at the loan forgiveness did not resu lt in disallowed deductions. Several bills ha ve been proposed, including provisions in so me of the stimulus legislation, but nothi ng has passed. Today, the Senate Committ ee on Finance released a bi-partisan stateme nt saying they believed Treasury “misses t he mark” on this guidance and th at they will continue their efforts to “clari fy in any end-of-year legislation the intend ed relief in the CARES Act...”

Whi le it is unclear if Congress wi ll ultimately act, either during the lame-du ck period or after the new Congre ss is installed in January, taxpayers shou ld consider extending their 2020 returns to s ee if action is taken.

home 11/24/2020

home

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09/29/2020

Whew! In under the wi re - good for two more yea rs as a Certified Flight Instructor! Harde st and most nerve
wracking part is completi ng the government paperwork correctly!

08/17/2020

Virginia Announces $70 Million Rebuild VA Econom ic Recovery Fund for Small Businesses, Nonprofi ts Impacted by COVID-19

Rebuild VA Grant Applicatio ns Open – click the link f or more info:
https://www.governor.virginia.gov/newsroom/all-releases/2020/july/headline-859659-en.html
(For Business in VA w ho have not received EIDL or P PP)

08/13/2020

I was honored this past weeke nd to recognized for my work wi th the Youth Foundation, teaching young ki ds to fly. I love worki ng with those kids - they a re go getters!!

08/10/2020

Did you file an extension f or your business taxes? The ne xt deadline is October 15. I thi nk most of us took advantage of t he first automatic extension from the norm al deadlines and then we were annoy ed at ourselves for missing the Ju ly 15 deadline! We've all be the re! But you can easily g et this done by end of t he month. Take just a litt le chunk - about 30 minutes - ea ch day. Start with the t op of your balance sheet, reconcile ea ch account. In 30 minutes a d ay - you'll be surprised how quick ly you can get through this. Th at said, if you ever need us, we're always happy to help.

08/07/2020

Did you receive a PPP lo an? A lot of clients a re asking to begin the loan forgivene ss process. They’ve seen the lo an application put out by the S BA and want to get started on t he forgiveness application. However, the forgivene ss application put out by the S BA is simply a guideline for t he banks to use. The ban ks will each have their own proce ss. We have not yet se en the banks release any official repayme nt applications. If you ha ve any questions on when this mig ht happen – it would be be st to get in touch directly wi th your lender. Hope this hel ps!

07/24/2020

Yesterday we on boarded 3 n ew clients. A retail store, a constructi on company, and a restaurant. That 's typical for us after a t ax deadline. All expressed that th ey had come to the realization th at they couldn't do their own bookkeepi ng any more - that their ti me and talents are better off in the ir own wheel house.

12/09/2019

Business Owners - Ready for t ax season?

KAW Solutions just wants to l et you know that we are he re if you need a team of QuickBoo ks ninjas to rescue your books in ti me for tax season 2020!

10/28/2019

QuickBooks Help For Small Business Ju st In Time For Tax Season!

Get your books in order wi th KAW Solutions. We've been helping sma ll businesses get their books under contr ol for over a decade. Our te am is ready to help.

KAW Solutions on Google 08/27/2019

KAW Solutions on Google

KAW Solutions on Google Your business is up and runni ng. Now take it to the ne xt level. Our team of bookkeepers, accountan ts, and Quickbooks Pro Advisors, can he lp. We serve small businesses from so le proprietors to those with >50 employe es.

05/09/2019

Affordable local business bookkeeping.

Affordable bookkeeping solution for local business es includes regular, accurate, monthly reporting se nt directly from your KAW Solutions bookkeep er, so you can stay on t op of your business financials.

Yes – I need help wi th my 1099’s, 1096, and W2's th is year 01/16/2018

Yes – I need help wi th my 1099’s, 1096, and W2's th is year

KAW Solutions has already begun t he preparation for our client's 1099s, 109 6s, and W2s. We previously posted a remind er that it was time to g et you year-end wrap-up done. Hopefully, you' ve already completed or, at least, beg un that process. But now, its ti me to get started with your 2017 busine ss tax documentation...

Yes – I need help wi th my 1099’s, 1096, and W2's th is year   KAW Solutions has already beg un the preparation for our client's 109 9s, 1096s, and W2s. We previously post ed a reminder that it was ti me to get y

Yes – I need help wi th my 1099’s, 1096, and W2's th is year 01/14/2018

Yes – I need help wi th my 1099’s, 1096, and W2's th is year

KAW Solutions has already begun t he preparation for our client's 1099s, 109 6s, and W2s. We previously posted a remind er that it was time to g et you year-end wrap-up done. Hopefully, you' ve already completed or, at least, beg un that process. But now, its ti me to get started with your 2017 busine ss tax documentation...

Yes – I need help wi th my 1099’s, 1096, and W2's th is year   KAW Solutions has already beg un the preparation for our client's 109 9s, 1096s, and W2s. We previously post ed a reminder that it was ti me to get y

Yes – I need help wi th my 1099’s, 1096, and W2's th is year 01/09/2018

Yes – I need help wi th my 1099’s, 1096, and W2's th is year

KAW Solutions has already begun t he preparation for our client's 1099s, 109 6s, and W2s. We previously posted a remind er that it was time to g et you year-end wrap-up done. Hopefully, you' ve already completed or, at least, beg un that process. But now, its ti me to get started with your 2017 busine ss tax documentation...

Yes – I need help wi th my 1099’s, 1096, and W2's th is year   KAW Solutions has already beg un the preparation for our client's 109 9s, 1096s, and W2s. We previously post ed a reminder that it was ti me to get y

Yes – I need help wi th my 1099’s, 1096, and W2's th is year 01/07/2018

Yes – I need help wi th my 1099’s, 1096, and W2's th is year

KAW Solutions has already begun t he preparation for our client's 1099s, 109 6s, and W2s. We previously posted a remind er that it was time to g et you year-end wrap-up done. Hopefully, you' ve already completed or, at least, beg un that process. But now, its ti me to get started with your 2017 busine ss tax documentation...

Yes – I need help wi th my 1099’s, 1096, and W2's th is year   KAW Solutions has already beg un the preparation for our client's 109 9s, 1096s, and W2s. We previously post ed a reminder that it was ti me to get y

8 of 10 Self-Made Millionaires We re Not 'A' Students. Instead, They Sha re 1 Trait 12/28/2017

8 of 10 Self-Made Millionaires We re Not 'A' Students. Instead, They Sha re 1 Trait

I rarely share any of t he posts I read, but this o ne is a really simple, straightforward artic le.

8 of 10 Self-Made Millionaires We re Not 'A' Students. Instead, They Sha re 1 Trait Listen to most teachers -- a nd most parents -- and it's ea sy to assume that getting good grad es in school is a requirement f or professional success.

I need help to wrap up my 2017 f or an on-time filing 12/24/2017

I need help to wrap up my 2017 f or an on-time filing

The year is almost over a nd now its crunch time for t ax filling preparation. Time is at a premi um around the holidays. we're ready to spe nd some quality time with friends a nd loved ones, but we know we ha ve critical year-end tasks that must be completed.
we have some great new for y ou. No I’m sorry, we don’t ha ve clones who can do the wo rk for you, while you go ta ke care of the fun stuff. B ut, we do have two ways to he lp you beat the demands on yo ur time. First, KAW Solutions can he lp you to...

I need help to wrap up my 2017 f or an on-time filing   The year is almost ov er and now its crunch time f or tax filling preparation. Time is at a premi um around the holidays. we're ready to spe nd some

Yes – I need help wi th my 1099’s this year 12/22/2017

Yes – I need help wi th my 1099’s this year

Click to find-out

What our clients a re saying about us

YES, I need he lp with 1099s, W2s, & 1096s th is year.


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Yes – I need help wi th my 1099’s this year Click to find-out What our clien ts are saying about us YES, I ne ed help with 1099s, W2s, & 109 6s this year. (function(d, s,

12/21/2017

I need help to wrap up my 2017 f or an on-time filing

Need help to wrap up my 2017 f or an on-time filing?

Yes – I ne ed help to wrap up my 2017 f or on-time filing

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I need help to wrap up my 2017 f or an on-time filing Click to find-out What our clien ts are saying about us Yes – I ne ed help to wrap up my 2017 f or on-time filing (function(d, s, id) { v

12/19/2017

Yes – I need help wi th my 1099’s this year

Click to find-out

What our clients a re saying about us

YES, I need he lp with 1099s, W2s, & 1096s th is year.


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Yes – I need help wi th my 1099’s this year Click to find-out What our clien ts are saying about us YES, I ne ed help with 1099s, W2s, & 109 6s this year. (function(d, s,

12/07/2017

I need help to wrap up my 2017 f or an on-time filing

Need help to wrap up 2017 f or an on-time tax filing?

The Special Web-bas ed Accounting Team (SWAT) bookkeepers, accountants, a nd QuickBooks Pros at KAW Solutions h as you covered!

Let us know you ne ed help on this page AND we' ll call you back TODAY!


Yes – I ne ed help to wrap up my 2017 f or on-time filing

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I need help to wrap up my 2017 f or an on-time filing Yes – I need help to wr ap up my 2017 for on-time fili ng Plus - Click to find-out Wh at our clients are saying about us (function (d, s, id)

12/04/2017

Yes – I need help wi th my 1099’s this year

Need help with your 1099 th is year - Our crack team of bookkeepe rs and accountant has got you covered.

L et know you need help and we' ll call you back today!

Check us o ut. Find-out what our clients are alrea dy saying about us.
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Yes – I need help wi th my 1099’s this year YES, I need help with 109 9s this year. Want to know wh at our clients are saying about us? (function(d, s, id) { var js, fj

11/19/2017

Bookkeeping Ninjas Of KAW Solutions

For quite sometime now we ha ve been gathering feedback from our loc al business bookkeeping clients in order to cra ft the perfect package of price, servi ce, and reporting. This video represents t he launch of the final flat-rate a nd a la cart offerings that ha ve come from that time of intensi ve study and development.
Please share th is post with your network and n ot just because the video might be fun ny.

Videos (show all)

Business Owners - Ready for t ax season?
QuickBooks Help For Small Business Ju st In Time For Tax Season!
Affordable local business bookkeeping.
Bookkeeping Ninjas Of KAW Solutions

Location

Category

Telephone

Address


5 Loudoun St SW
Leesburg, VA
20175

Opening Hours

Monday 8:30am - 5pm
Tuesday 8:30am - 5pm
Wednesday 8:30am - 5pm
Thursday 8:30am - 5pm
Friday 8:30am - 5pm
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This is the page for Money Managers, CPA's.

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Kossler & Company, PLLC Kossler & Company, PLLC
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Certified Public Accountants

JST Advisor, LLC JST Advisor, LLC
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Income Tax Preparation for business and personal Tax Planning Bookkeeping Payroll Services

Berg Faircloth & Company Berg Faircloth & Company
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Built on a solid foundation of excellent client service and in-depth market knowledge, Berg Faircloth strives to develop a relationship with each client to foster a greater understanding of your needs and objectives while maintaining the ethical standards

TaxPros TaxPros
21 Fort Evans Rd NE Ste F
Leesburg, 20176

Accountants and Consultants

Brinser Consulting, LLC Brinser Consulting, LLC
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Brinser Consulting is in outsourced CFO and accounting services company specializing in small and mid-sized companies looking to grow.

NOVA Tax Group NOVA Tax Group
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Professional Tax & Accounting Services for Individuals & Small Businesses

Loudoun Estate Planning Council Loudoun Estate Planning Council
44160 Scholar Plaza Suite 490
Leesburg, 20176

non-profit dedicated to educating the public on the importance of estate planning. We offer members a forum to network, stay up-to-date on emerging topics of interest, complete continuing education requirements and give back to our community.