Year End Update 2020
Saying 2020 has been a challenging year is an understatement. When the government shutdowns happened we made the decision to continue to help our clients regardless of payment ability - this resulted in us doing work for clients who ultimately didn’t make it but it also helped build trust and confidence with our surviving customer base.
We also had the pleasure of helping over 200 businesses with the SBA loans and Grants specifically the PPP loans. We provided this service for free to help our fellow entrepreneurs.
Below is a listing of the important dates in our year-end email to our clients.
~ Andrew Klein Managing Partner at Zccounting.com
Upcoming Dates to Know
Jan 31, 2021 - Should be done by Gusto & Bill.com
Deadline to distribute annual forms W-2 and 1099-MISC to employees and independent contractors who worked for you in 2020.
Transmittal form for W-2s to the Social Security Administration (Form W-3 and all W-2s).
Transmittal form for 1099-MISC to the IRS (Form 1096, along with all 1099-MISC forms) are due.
File form 941 for 4Q 2020 (the quarterly payroll tax withholding return). Or if you are an annual filer, the annual 2020 form 944 is due.
Payment of remaining federal unemployment (FUTA) taxes and the Federal Unemployment Tax Report (Form 940) for 2020 are due.
Feb 2, 2021 - Washington State B&O tax deadline (and other state filings)
Mar 1, 2021 - Delaware Franchise Tax Deadline
Mar 15, 2021 - Partnership and S-corp deadline (LLCs and S-corps)
Apr 15, 2021 -
Tax returns for C-corporations, sole proprietors, and individuals are due.
Estimated tax payments for the 1st quarter of 2020 are due for C-corporations and individuals.
Sep 15, 2021 - Final deadline to file corporate tax returns for the tax year 2020, if an extension was requested (1120, 1120-A, 1120-s)
Oct 15, 2020 - Final extended deadline to file individual tax returns for the year 2020 (Form 1040)
*this is not a complete list but I hope it captures the most relevant deadlines for our clients.
PPP #2
A second PPP round has been approved, the rules are stricter than the first PPP. You may be eligible for 2.5x your average payroll of either 2019 or 2020 payroll (3.5x if you are a restaurant).
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses
Has no more than 300 employees; and
Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020
Delaware Franchise Tax
If you are registered as a Delaware Corporation you have a requirement to file your franchise tax return by March 1st. Although it's called a "tax return" I think of it more like a license renewal.
If you log in you will see an astronomically large amount due until you enter the correct info and refresh.
Please make sure you are ready with your shares issued and outstanding, your fee will be at least the minimum of $450 but I have not filed many over $1,500. You can make the payment with a credit card or ACH info.
R&D Tax Study
Most Zccounting Clients are innovative and incur research and development costs in the US? If this applies to you then you may be able to claim a sizable tax credit of up to $250,000 federally and more on the state levels. Once approved by the IRS, the R&D credit is applied towards your business’s future payroll tax liabilities of if you are profitable can be used to pay your tax.
We have partnered with Algorithm Tax Group to help our clients maximize these credits - we have a streamlined program where we send them the necessary financial information and you only have to do a quick interview about your innovation. If you don't qualify you don't pay.
Send me an email with the headline "R&D tax study" to see if your company qualifies or to get kicked off.
2020 Tax Return Filing
We are working on building capacity in house to file tax returns, as we grow this service line we are using partners and contractors to help clients find the best fit. Let me know if you are ready to start the tax return process and we'll help you optimize and send the necessary info to your tax preparer.
1099 Filing
At Zccounting we always try to use technology to help our clients auto-comply with all the tax requirements, particularly around employment. In most cases, the 1099 filing requirement will be satisfied by Gusto and or Bill.com.
If you have paid domestic contractors (sole proprietors or LLCs/LLP/PLLCs) directly with a check, cash, zelle, or like service please let us know you will need us to file manual 1099s for these people.
I have also asked the bookkeeping team to try and identify these contractors for clients.
New Hire - Sunny Patel - Need a new financial model?
We are stoked to have Sunny as he previously worked at major global institutions such as Merrill Lynch and PwC. He has completed over $1Billion in deals and has his Series 62, 63, and 79 certifications.
To keep him busy, we are offering seed-stage financial models for 1/2 off. ($1,500 vs $3,000)
Send me an email if you need one!
New product line - investor updates
One of the challenges that we have tried to solve here at Zccounting is keeping investors up to date with the startups they invested in. This is a win-win for everyone, as it keeps founders focused and keeps investors excited about the companies they invested in.
We have been piloting a semi-automated investor update program that prompts entrepreneurs to deliver this update in a timely manner. Thanks to Surbhi at Symbl.ai for being our Pilot customer and giving us such great feedback to make this a good fit for founders.
If you are interested in learning how we can help you with contact megan@zccounting.com (CC me klein@zccounting.com) to give you a quote. We are starting with no more than 10 customers in this next phase - so don't delay.
Questions?
If you have any questions feel free to schedule a year end review with our team
Refer a friend
Help keep our prices low and refer a friend so I don't have to pay for marketing
In almost 7 years Zccounting has never raised prices, we are able to do this because I spend pretty much $0.00 on marketing. Most of our new business comes from referrals because our clients have such great experiences with our team!
Kudos to Andie, Keenyn, Tam, Austin, Inigo, Mike, John, Darren, Gabe, Sunny, and Megan.
If you have any friends that need accounting, bookkeeping, tax, pretty much anything numbers help, please send them my way through signup@zccounting.com
