Happy Mardi Gras! Below is an update from a good friend who continues to share…
General Updates 4/22/2022
IRS, Inflation, and Other Updates 4/5/2022
We hope everyone had a wonderful Easter/Passover and is enjoying the beautiful springtime. We are in your inboxes today with some updates mainly surrounding the IRS.
For those of you who are still waiting on returns from the IRS, we encourage you to read this article detailing the process and explaining why it is so slow. In sum, the IRS requires paper as very little is automated. This article is very telling, because the IRS had the opportunity to automate their system but were not able to decide on a plan to move forward. The paper system remains in place, largely explaining why delays are so common. Everything sent in to the IRS must be rekeyed into their antiquated software, leaving more room for mistakes.
We frequently get notifications about incorrect tax payments but our team has a staff member on hand dedicated to sending out the correct documentation. Rest assured that our team is ready to fight mistakes, penalty charges, and on issues that the IRS are responsible for.
We also got notification from the IRS regarding the 2020 tax returns that had to be refiled to maximize the ERTC credits. This notice let us know that these returns have finally been processed, and checks should be arriving within 8 to 10 weeks.
Moving away from the IRS, we wanted to share this article for our restaurant businesses. A Restaurant Aid Bill is in the works that would help businesses affected by the pandemic. In this bill, restaurants with any wage violations are not eligible for this potential windfall. The bill is heading to the Senate and we are hoping they vote positively for a much-needed break in this critical industry.
Many are aware that inflation has hit an astounding 8.5% and continues to grow, and this is having immediate repercussions in the workforce. With businesses avidly fighting for good employees, employers are dedicated to culminating an employee friendly environment. Employees are now feeling deserving of a raise to help cope with the high inflation rate. General economics suggests that we are due for a cutback in the economy. Unfortunately, businesses cannot keep raising prices to battle the costs and the consumers will eventually begin to cut back as they cannot afford items. We do not mean to be the bearer of bad news but rather want to share the employment point of view so you are informed.
On another note, if anyone has used the Kronos time system, we encourage you to read this article. This article details their recent system hack and the subsequent fallout. We’d like to encourage you to take this article as a reminder to update and check in on your cybersecurity on a monthly basis. It is amazing and incredibly alarming how easily hackers can get into your systems, and businesses must remain extremely careful and diligent in this sphere. Please do not hesitate to reach out to us if you have any questions or what Delta is doing to protect ourselves and our clients.
Thanks, and have a great week
Dave and Teresa