(775) 786-6141
Congratulations to Bill Saylor on his recent promotion to a director at Barnard Vogler & Co! Read more about Bill below.
Barnard Vogler & Co. announced this month that Bill Saylor, CPA, CGMA, was named a director at the Certified Public Accounting firm.
Saylor joined Barnard Vogler & Co. in 2018 as a senior manager, with more than 25 years of industry and public accounting experience, according to a March 11 press release.
He assists individuals, businesses and nonprofits with tax planning, compliance and consulting services, and he manages financial statement audits of contractors, nonprofits and governments, among other duties.
Saylor earned a Bachelor of Science in business administration with an emphasis in accounting from the University of Nevada, Reno.
He is a licensed CPA in Nevada and California; is a member of the American Institute of Certified Public Accountants and Nevada Society of Certified Public Accountants, and serves on the Board of Directors of the United Way of Northern Nevada and the Sierra.
Estimated taxes are a practice of pre-paying taxes typically on a quarterly basis. The total amount of these payments is based on the income during the year and the taxpayer’s estimated tax liability. The income in this calculation is income not subject to any other form of withholding. Normally, this includes self-employment income, dividend income, rental income, interest income, or capital gains.
Under United States law, citizens with income are required to pay tax in some form. Many American entities are required to pay taxes through estimated taxes. This practice helps ensure the government will receive its taxes and allow entities to not have to pay their taxes in a lump sum on Tax Day. However, not all entities must make estimated payments. It is essential for all taxpayers to know where they fall and what taxes they are obligated to pay under law. 
Have to Pay Estimated Taxes, Yes or No?
Yes
The type of organization and the amount of income it generates determines what taxes it pays. The following entities must make estimated tax payments if they expect to owe $1,000 or more after any withholdings when the tax return is filed:
Corporations that expect to owe $500 or more are also required to make estimated tax payments.
No
Most entities are obligated to pay estimated tax payments by law, but there are certain circumstances where this is not the case. In situations where an individual’s primary source of income is salary/wage based, these individuals may file a Form W-4 with their employers to avoid making estimated tax payments. In this form, individuals can request your employer withhold more from your earnings to pay for the tax on the other types of income noted above, circumventing the need for estimated tax payments. This is done by filling out a certain line on Form W-4, where they state the additional tax you wish your employer to withhold from each paycheck.
As discussed before, the tax owed to the government depends on the income or expected income of the taxpayer. To help simplify this process, the IRS provides a free tax withholding estimator on their website. A link to this tool is provided below:
https://www.irs.gov/individuals/tax-withholding-estimator
Tax Fraud
Taxes must be paid and never purposely dodged. The penalty for purposeful tax evasion is quite punitive with imprisonment and massive fines being the most likely result. However, the IRS understands not all improper tax practices are intentional. Accidents will happen, so the IRS has created a less punitive system of consequences for those who unintentionally file improper tax payments. A common consequence is a payment penalty of 20% of the underpayment.
NOTE TO INSPECTOR: The word “iridium” on the pen’s nib is not a brand: it’s the name of the metal of which the nib is made. Thanks.
Should It Stay or Should It Go?
When it comes to the choice of paying estimated taxes when it is not required by law, the most appropriate solution for an individual is based on their own personal preferences and their current financial situation. If you prefer to have more capital on hand for spending/investing and income is precarious, you may prefer not to pay estimated taxes. This would keep your capital more liquid and available for new opportunities and or problems that may arise in life at the cost of potential penalties and interest on the underpaid estimates. On the other hand, if you are risk-averse with a secure financial situation, you may prefer to pay estimated taxes and avoid lump sum payments and more complicated filings come Tax Day.
If you have any questions regarding estimated taxes or general accounting questions, please call the professionals of Barnard Vogler & Co., at 775.786.6141 or visit our contact form on our website, https://bvcocpas.com/contact-us/.
Over the last year, the COVID-19 pandemic has limited business activity and strained the economy and job market. This has forced the federal government to step in and provide a variety of assistance programs, where small business owners/managers can access the resources they need to continue operations. One area where small business owners may find their needed financing is in the federal programs supported by the Consolidated Appropriations Act, 2021. 
Consolidated Appropriations Act, 2021
The Consolidated Appropriations Act, 2021 was passed by Congress on December 21 and was signed into law on December 27. It serves as a continuation of the many programs and actions created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was originally passed on March 27, 2020. The main purpose of the CARES Act and the following Consolidated Appropriations Act is to provide financial support to American businesses and citizens struggling through the economic hardships created by the pandemic. Over $2 trillion was set aside to support Americans in the CARES Act, with an additional $900 billion being dedicated to continuing this support with the Consolidated Appropriations Act.
This support took a variety of different forms, from an additional round of stimulus checks to increased unemployment benefits. However, an observant business leader should pay special notice to the actions taken by the United States Small Business Administration (SBA). The two most important actions that should be noted are the restarting of the Paycheck Protection Program (PPP) and the new stipulations on American loans.
Lifeline Loans
With $325 billion in the Consolidated Appropriations Act being dedicated to supporting small businesses, business owners are given the perfect opportunity to receive the resources they need to sustain their business. This opportunity presents itself in the format of generous loans. These loans fall into one of two categories with SBA 7(a)s, 504s, and microloans making one group, while the other group consists of loans created by the PPP. While both loan groups can be helpful to support small businesses, the effects and structures of each group are starkly different.
SBA 7(a)s, 504s, and Microloans
SBA 7(a)s, 504s, and microloans are standard loans that have been part of the American financial system for a considerable amount of time. Yet, the new stipulation that governs these loans are quite unprecedented. Loans in this category will have their payments of principal and interest be paid for by the SBA for the first six months if they were created within six months of the CARES Act or approved between February 1 and September 30, 2021. These payments will be capped at $9,000 a month per borrower. The SBA has also been authorized to waive borrower and lender fees for these loans.
Paycheck Protection Program (PPP) Loans
PPP loans were created specifically by the CARES Act and Consolidated Appropriations Act to provide much-needed capital to small businesses. While the program ended its first run in the summer, it has been restarted and funding extended in the Consolidated Appropriations Act to begin accepting loan applications again. These loans are unique as they are fully forgivable if certain requirements and stipulations are met. Some key stipulations include:
Some businesses are also eligible to apply for another PPP loan if they have already received one during the first run of the PPP and have met certain requirements. For more information about all the stipulations and functions of PPP loans, please contact our firm.
If you are considering using this source of funding, please contact Barnard Vogler & Co. for more information about how to access the funds and how to properly use them in regard to SBA guidelines.
Works Cited:
Drew, J. (2021, January 14). Guidance issued for PPP first-draw loan increases, reapplications. Journal of Accountancy. https://www.journalofaccountancy.com/news/2021/jan/ppp-first-draw-loan-increases-reapplications.html.
Flynn, M. C., Pear, A. M., Connell, L. D., James K. Dyer, J., Gillison, R. S., Mitchell, T. A., & Peo, V. B. (2020, December 28). New PPP Changes in the Stimulus Bill: Second PPP Loan for Hardest-Hit Existing PPP Borrowers, Additional Categories of Forgivable Expenses, Tax Deductibility for Expenses Paid with PPP Proceeds, Lender Liability Limitations, Simplified Forgiveness Application for Loans of $150,000 or Less, and Other Changes. Lexology. https://www.lexology.com/library/detail.aspx?g=78c0d14e-1eba-434c-96f9-1f7bbca1fa44.
The New Stimulus Bill’s Sweeping Changes to the Paycheck Protection Program. (2020, December 29). https://www.huschblackwell.com/newsandinsights/the-new-stimulus-bills-sweeping-changes-to-the-paycheck-protection-program#:~:text=For%20SBA%207(a)%2C%20504%2C%20and%20microloans%20made,capped%20at%20%249%2C000%20per%20month.
Reosti, J. (2020, December 23). New stimulus package clears path for increased SBA lending. American Banker. https://www.americanbanker.com/news/new-stimulus-package-clears-path-for-increased-sba-lending.
Schmidt, M. (2020, December 31). Small Business Owners Get More PPP Relief, Expanded Loan Options. https://www.fa-mag.com/news/new-stimulus-package-offers-more-relief-for-small-business-owners-59592.html.
Snell, K. (2020, March 26). What’s Inside The Senate’s $2 Trillion Coronavirus Aid Package. https://www.npr.org/2020/03/26/821457551/whats-inside-the-senate-s-2-trillion-coronavirus-aid-package.
Terrell, K. (2020, December 28). Congress Passes New Stimulus Relief Bill. AARP. https://www.aarp.org/politics-society/advocacy/info-2020/covid-stimulus-relief.html.
The year 2020 brought unprecedented changes, from economic challenges, major shifts in the job market and the passing of legislation to assist citizens and businesses. It is likely that 2021 will continue to serve up historic changes, as the economy gets back on track, many of our citizens return to the work force and regulations continue to shift. We have compiled a list of items to be aware of as you prepare for 2021 tax season. 
Communication and Organization | Expect new forms, credits, and requirements in 2021; so it is critical that businesses stay organized and communicate with their tax preparer. Last year’s tax return, accurate information regarding all expenses, revenue and deductions along with all employee information including annual payroll records, will need to be readily available.
Paycheck Protection Program (PPP) | As of December 27, 2020, expenses paid under the provisions of the PPP program are also tax deductible, and proceeds from forgiven PPP loans are tax-exempt.
Tax Day | Tax Day for Partnerships and S Corporations is Monday, March 15, while calendar year C Corporations and individuals have until Thursday, April 15 to file a return or extension. Tax preparation this year is more involved due to PPP funds, and other provisions in the 2021 COVID relief bills, the CARES act and the FFCRA as well as Tax Cuts and Jobs Act from 2017.
New Tax Credits and Loan Programs | Major changes to the business tax code for 2020 include new tax credits and loan programs to help businesses weather the effects of COVID-19. For businesses that received any governmental assistance during 2020 or that opted to defer tax payments, it is vital to ensure the use of the loans, grants or extensions received are accurately tracked and reported when filing taxes. New programs and changes include:
• CARES act
• Economic Injury Disaster Loan (EIDL)
• Employee Retention Tax Credit (ERTC)
• Families First Coronavirus Response Act (FFCRA)
Individuals | COVID legislation most notably included economic impact payments for individuals of $1,200 and $600 respectively, more generous rules on distributions from IRAs and other retirement plans, a suspension of the RMD requirement for older Americans, as well as a $300 above-the-line deduction for charitable contributions for taxpayers who don’t itemize. Other provisions provided renter protections and student loan deferments to those struggling financially.
Tax Cuts and Jobs Act | The Tax Cuts and Jobs Act significantly changed Sec. 274 of the Internal Revenue Code by eliminating the deduction for any expenses considered entertainment, amusement, or recreation. Of course, December 2020 legislation then provided a 100% deduction for meals (but still 0% for entertainment) for 2021 and 2022 when purchased from a restaurant. While intended as a benefit for a restaurant industry decimated by COVID, this is still a welcome break for small businesses.
Thank you to our community! We are honored to be a top-three finalist for Best Accounting Firm in the Northern Nevada Business Weekly’s Best in Business awards!
We are honored to be a top 10 finalist in the Accounting Firm category of the Best in Business awards by the Northern Nevada Business Weekly! Thank you to our community for your support and acknowledgment.
Congratulations to Managing Director, Leslie Daane, on her nomination in the category of Leaders to Know in this year’s NNBW Best in Business award. We are also so honored to have been nominated in the category of Accounting Firm. Thank you Reno for your support and acknowledgement. Please read more about Leslie and our firm, and cast your vote below.
Read about Leslie here: https://www.nnbw.com/bestinbusiness2020/#/gallery/247938039?group=354547
Read about our firm here: https://www.nnbw.com/bestinbusiness2020/#/gallery/247924419?group=354549
Featured in Northern Nevada Business Weekly, Barnard Vogler’s Teela McCullar earns Professional Achievement Award from UNR alumni.
RENO, Nev. — Barnard Vogler & Co. announced Aug. 13 Teela McCullar, CPA, Director, has been awarded the Professional Achievement Award by the Nevada Alumni Association at the University of Nevada, Reno.
Each year, the Nevada Alumni Association honors outstanding alumni who have demonstrated remarkable professional achievement and dedication to their community and the University.
The Professional Achievement Award is presented to those alumni exhibiting an outstanding record of career accomplishments. McCullar was named as a 2020 Professional Achievement Award winner, alongside four fellow alums.
McCullar joined Barnard Vogler in 2005 and became a director in 2014 and shareholder in 2016. She has over 15 years of public accounting experience. She provides tax services to businesses, high net worth individuals and trusts.
McCullar serves as principal on audit engagements for nonprofits, businesses and financial institutions. She also provides accounting and CFO solutions to various clients, including medical and dental providers.
She is a member of the American Institute of Certified Public Accountants and Nevada Society of Certified Public Accountants. She serves on the Board of the Nevada Society of Certified Public Accountants and is Chair of the City of Reno’s Financial Advisory Board. She has provided various financial literacy presentations to students in the community.
McCullar received her B.S. degree in accounting and her master’s degree in accountancy from UNR. She is a graduate of the American Institute of Certified Public Accountants Leadership Academy and the Chamber of Commerce’s Leadership Reno-Sparks program.
With the entire country facing historic economic and social challenges, how small businesses will endure these obstacles must be carefully considered. That is one of the many reasons why the United States government passed the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act on March 27, 2020. This act provided $2 trillion in economic relief towards Americans with over $500 billion going towards the Paycheck Protection Program (PPP). This program is managed by the U.S. Small Business Administration and dedicated to providing funds to small businesses to cover payroll, employee benefits, and overhead costs during these unprecedented times. 
However, when any new major law is implemented there will always be some confusion about it and the CARES Act is no exception. This sense of uncertainty has been made worse by the fact that the rules and criteria governing PPP loans have constantly been changed and modified, such as when the Paycheck Protection Program Flexibility Act was passed. One of the biggest sources of continued incertitude comes from a lack of clarity in what is tax-deductible with PPP loans. That’s why we have created this simple guide to explain what is deductible and what is not regarding PPP loans.
In layman terms, a PPP loan can be fully tax-exempt if all qualifications needed for forgiveness status are met. Be aware that with how the law is currently written, you cannot take a business deduction on your tax return for the expenses paid for by the PPP loan. This could change with a revision to the law.
Criteria Needed for Full Forgiven Status
Note that there are many nuances to the above points so even if someone doesn’t qualify for full forgiveness, partial forgiveness can still be achieved.
As of July 1, 2020, the United States Senate requested an extension of the PPP deadline to August 8, 2020. The program was positioned to stop taking applications on June 30, 2020, with more than $130 billion left unfunded to small businesses. To date, more than $500 billion has been distributed to 4.8 million businesses.
PPP loans can be an incredible resource to help small businesses that are suffering from the effects of Covid-19. Barnard, Vogler, and Co., is aware that it can be a lifeline for the livelihoods of many Americans. We are also aware that the laws and regulations regarding PPP loans are complex and sometimes difficult to understand. Please contact us here if you need more information about PPP loans: https://bvcocpas.com/contact-us/
Works Cited
Arvedlund, E. (2020, June 8). Congress updates PPP loan rules, making them more business-friendly. https://www.inquirer.com. https://www.inquirer.com/news/ppp-ppfa-congress-trump-coronavirus-loans-small-business-administration-sba-20200608.html.
The CARES Act Provides Assistance to Small Businesses. U.S. Department of the Treasury. (2020, June 16). https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses.
The CARES Act Works for All Americans. U.S. Department of the Treasury. (2020, June 16). https://home.treasury.gov/policy-issues/cares.
Hare, N. (2020, June 25). SBA Issues New PPP Loan Guidance: What You Need To Know And FAQs. https://www.forbes.com/sites/allbusiness/2020/06/25/sba-issues-new-ppp-loan-guidance/.
Ludwig, S. (2020, May 21). Tax Implications of PPP Loans. https://www.uschamber.com/co. https://www.uschamber.com/co/run/finance/tax-implications-of-paycheck-protection-loans.
Paycheck Protection Program. U.S. Small Business Administration. https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program.
By: Teela McCullar
The Paycheck Protection Program (PPP) is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. Congress created the PPP as part of the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, that was signed into law in March 2020. The legislation authorized the Treasury to use the SBA’s 7(a) small business lending program to fund forgivable loans of up to $10 million per borrower that qualifying businesses could spend to cover payroll, mortgage interest, rent, and utilities.
According to the Treasury Department Paycheck Protection Program (PPP) Information Sheet, “loan amounts will be forgiven as long as the loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8-week or 24-week period after the loan is made. With some exceptions, the loan amount is based on your average monthly payroll cost for 2019. You can receive 2.5 times that amount to help cover payroll. The funds from the PPP can be used for the following purposes: 
It is recommended to track your eligible payroll and non-payroll costs as you incur them. To maximize loan forgiveness, the key will be properly tracking costs. While tracking restricted funds is not new to many nonprofit organizations who often receive funds restricted by time, purpose, or amount – this concept may be new to for-profit businesses.
Below are a few suggested practices for recording Paycheck Protection Program (PPP) funds and expenses to ensure your company will avoid future challenges.
How to Record
A liability account should be created when recording the loan onto your books. Some banks require keeping the money you receive in a separate bank account, while others are discouraging it. If your bank does not require separating the money, consider depositing the funds into a savings account from which you can transfer the funds to your main checking account as the loan dollars are spent. This allows for easier tracking of the qualifying disbursements. While a separate account will assist you with tracking how much of funds are used, it is also important to track how funds are used. This may be difficult when using the bank account alone, given the limited level of detail that can accompany the transactions.
Create General Ledger Accounts
Consider creating sub general ledger expense accounts within your accounting system specific to the Paycheck Protection Program funds and utilization. The benefit of a general ledger sub-account is that it maintains all documentation in your accounting system and reduces the possibility of manual errors.
Utilize a Manual Spreadsheet
To track funds using a spreadsheet, enter your loan proceeds balance and subtract each qualifying disbursement. Be sure to include details about the disbursements in the spreadsheet, so that you are tracking both how and how much of the funds are being used.
While manual entry and tracking is time-consuming and potentially inefficient, the benefit of using a spreadsheet is that as more guidance is provided, you can make adjustments easily, adding or deleting expenses. There is also no limit of the amount of information you can include in a spreadsheet, allowing you to keep as much detail as you want regarding the expenses. You can also use a formula to track how much of your fund utilization is for payroll and how much to cover non-payroll costs.
On the surface, the guidelines for obtaining full forgiveness from your lender are straightforward. However, due to the everchanging information and instructions continuously being announced, it’s imperative to track your expenses to ensure your PPP loan will be forgiven.
If you have any questions regarding the PPP, tracking expenses or general accounting questions, please call the professionals of Barnard Vogler & Co., at 775.786.6141 or visit our contact form on our website, https://bvcocpas.com/contact-us/.
