DMA Accountancy Corporation

Hope you are having a Happy and Safe Halloween!

The IRS recently provided information regarding the inflation-adjusted maximum dollar amount that may be made available for excepted benefit Health Reimbursement Arrangements (HRAs) or other account-based group health plans next year. The amount applies to plan years beginning after December 31, 2020, and before January 1, 2022, referred to as the 2021 plan year. Tax code regulations provide that, for each plan year, amounts newly made available to excepted benefit HRAs cannot exceed $1,800. Because of the inflation indexing methodology used, the maximum newly made available amount for an excepted benefit HRA will remain $1,800 for the 2021 plan year. Contact us for further information. Read more in today's newsletter http://bit.ly/DMANewsletters

The passive activity loss rules affect business ventures you’re engaged in or might engage in. If the ventures are passive activities, the passive activity loss rules prevent you from deducting expenses that are generated by them in excess of their income. You can’t deduct the excess expenses (losses) against earned income or against other nonpassive income. Nonpassive income for this purpose includes interest, dividends, annuities, royalties, gains and losses from most property dispositions, and income from certain oil and gas property interests. There are different rules for rental activities. Contact us if you’d like to discuss how these rules apply to your business.

Entrepreneurs: Don’t ignore saving for retirement. Here are the basics of tax-favored plans to help build your nest egg. Read more here: http://bit.ly/DMANewsletters

Employees pay Social Security tax on their wages up to the current tax year’s wage base. The Social Security Administration just announced the base amount for 2021. Read more here: http://bit.ly/DMANewsletters

Here is a great article from our monthly newsletter on smart ways to handle remote workers.

Employers have had to take extra measures to care for employees during the COVID-19 pandemic. One specific area to consider is invisible disabilities. Read more in today's newsletter: http://bit.ly/DMANewsletters

Administering ERISA-compliant pension, health and welfare benefit plans hasn’t been easy during the COVID-19 pandemic. The federal government recently extended several key deadlines. Read more here: http://bit.ly/DMANewsletters

Getting a letter from the IRS that your tax return is being audited may strike fear into the hearts of business owners. But the more you know about IRS audits, the better you can fare. Read more here:http://bit.ly/IRSandaudits

Reminder: October 15 Tax Deadline is Approaching.

Has your organization considered offering disaster relief payments as a fringe benefit for employees severely affected by COVID-19? The idea is feasible, but you’ll need to explore the details. Read more about this fringe benefit in today's newsletter: http://bit.ly/covid-19disasterrelief

The tax rules for treating computer software costs can be complex. Here’s a basic explanation: http://bit.ly/DMANewsletters

Keeping up with the rules regarding COVID-19-related paid sick and family leave hasn’t been easy for employers. And the DOL just changed them again. Read more in today's newsletter by going to the link in the bio or here: http://bit.ly/DMANewsletters

The IRS is processing a backlog of mail due to COVID-19, and paper checks mailed to the IRS, either with or without a tax return, may still be unopened. If you are in this situation, do not cancel your check and make sure funds remain available so the IRS can process your payment. This will help you avoid potential penalties and interest. The IRS credits payments using the postmarked date on mail rather than the date they opened and processed them so they will not be lat...e if postmarked timely. The IRS will provide relief to taxpayers for bad check penalties for dishonored checks the agency received between March 1 and July 15, 2020, due to delays in IRS mail processing.