The IRS and the U.S. Treasury had disbursed 160.4 million Economic Impact Payments (EIP) as of May 31, 2020, according to a new report. These are the payments being sent to eligible individuals in response to the economic threats caused by COVID-19. The U.S. Government Accountability Office (GAO) reports that $269.3 billion of EIPs have already been sent through a combination of electronic transfers to bank accounts, paper checks and prepaid debit cards.

woman holding hundred dollar bills fanned out; image used for blog post about returning economic impact payments (EIP) during COVID-19 pandemic

Eligible individuals receive $1,200 or $2,400 for a married couple filing a joint return. Individuals may also receive up to an additional $500 for each qualifying child. Those with adjusted gross income over a threshold receive a reduced amount.

However, the IRS says some payments were sent erroneously and should be returned.


Continue Reading You Might Need to Return Your EIP

One of the strongest predictors of a not-for-profit’s long-term survival is multiple revenue sources. Many organizations with only one or two found that out that the hard way when they failed during the 2008 recession.

a hand pointing to a computer screen with a web page about revenue streams; image used for blog post about not-for-profit revenue sources

The same is likely to be true for not-for-profits that do — or don’t — survive the current novel coronavirus (COVID-19) crisis.


Continue Reading Finding Multiple Revenue Sources During a Crisis

Nearly everyone has heard about potentially receiving an Economic Impact Payment (EIP), which the federal government is sending to help mitigate the effects of the coronavirus (COVID-19) pandemic. The IRS reports that in the first four weeks of the program, 130 million individuals received payments worth more than $200 billion.

one-dollar bills scattered across the floor; image used for blog post about economic impact payment during COVID-19 pandemic

However, some people are still waiting for a payment. And others received an EIP but it was less than what they were expecting. Here are some answers why this might have happened.


Continue Reading Was Your Economic Impact Payment Lower Than Expected?

As a result of the coronavirus (COVID-19) crisis, your business may be using independent contractors to keep costs low. But you should be careful that these workers are properly classified for federal tax purposes. If the IRS reclassifies them as employees, it can be an expensive mistake.

four emojis faces wearing medical masks; image used for blog post about hiring independent contractors during COVID-19 pandemic

The question of whether a worker is an independent contractor or an employee for federal income and employment tax purposes is a complex one. If a worker is an employee, your company must withhold federal income and payroll taxes, pay the employer’s share of FICA taxes on the wages, plus FUTA tax. Often, a business must also provide the worker with the fringe benefits that it makes available to other employees. And there may be state tax obligations as well.

These obligations don’t apply if a worker is an independent contractor. In that case, the business simply sends the contractor a Form 1099-MISC for the year showing the amount paid (if the amount is $600 or more).


Continue Reading Hiring Independent Contractors During COVID-19