• GJM Blog

    Important Industry News & Helpful Tips

Gilmore Jasion Mahler Names New Partners, Senior Manager

Gilmore Jasion Mahler (GJM) Managing Partner Kevin Gilmore recently announced some exciting changes in the firm’s leadership team. Jamie Dixon, CPA and Matt Hoverman, CISA have been promoted to partner and Jessica Nunn, CPA has been promoted to senior manager.

Dixon is a member of GJM’s Healthcare Specialist Team. He also took on the role as GJM’s firm administrator in 2020. He has over thirty years of experience in both private and public accounting, providing consulting services to a broad range of healthcare entities, specializing in home health and long-term care. He has been with GJM since 2013. 

 

Matt Hoverman’s expertise is in risk advisory. He has over two decades of professional services experience in systems implementation, information security, internal and external audit, risk management, compliance, and management consulting across multiple industries. Matt joined GJM in 2016 and has since built a team offering risk advisory services.

 

Jessica Nunn is a member of the firm’s Manufacturing Specialist Team. She specializes in for-profit entities and has over a decade of public accounting experience at Gilmore Jasion Mahler. She’s been responsible for tax planning, preparation, and review of tax returns, in addition to general consulting largely related to corporate and multi-state tax issues.

 

“Congratulations to Jamie, Matt and Jessica on their well-deserved promotions,” says GJM Managing Partner Kevin Gilmore. “I’d also like to thank them, and all of our staff for the incredible work they’ve done over the past year helping our clients through all of the uncertainty brought on by the pandemic. We know our clients need our guidance now, perhaps more than ever.”

The promotions were effective January 1, 2021. 

Established in 1996, Gilmore Jasion Mahler, LTD (GJM) is the largest public accounting firm in Northwest Ohio, with offices in Maumee and Findlay. Locally owned, GJM offers cloud-based accounting and provides comprehensive services including assurance, business advisory, tax, risk advisory, healthcare management and outsourced accounting. The Firm’s professionals specialize in industries including construction & real estate, healthcare, manufacturing & distribution and utilities.  

 

Expansion and Changes to the Employee Retention Credit

Welcome News for Businesses with PPP Loans

The new stimulus package signed into law in late December brings billions more in aid to American businesses. Among the provisions of the nearly 5700-page law: an extension of the Employee Retention Credit (ERC), which is designed to support businesses that keep employees on payroll during the pandemic. The ERC has been extended through June of 2021 and is now available to businesses with Paycheck Protection Program (PPP) loans.

What is ERC and how does it work?

 The ERC is a refundable payroll tax credit that was included in the CARES Act of 2020 with the intent to keep employees on staff throughout the Covid-19 pandemic. For the period March 12, 2020 through year-end, businesses that met one of two tests could claim a credit of up to $5,000 of wages paid per employee. The eligibility tests were either:

1) At least 50% reduction in gross receipts for any quarter in 2020 as compared to the same quarter in 2019 or

2) Full or partial business closure due to a government shutdown in any quarter in 2020

One major note from the CARES Act: Employers that applied for a forgivable Payroll Protection Program (PPP) loan through the SBA were not eligible for the ERC.

Now let’s fast-forward to the impact of the Consolidated Appropriations Act, 2021. Under Act Section 206, businesses can now receive both forgivable PPP loans and remain eligible for ERC. This appears to be retroactive back to March 2020, but there are some unknowns. Here are some things we do know about changes to the ERC:

  • The same wages cannot be used to qualify for both PPP forgiveness and Employee Retention Credits
  • If utilizing both the PPP and ERC, employers are supposed to treat wages as qualified for ERC purposes before PPP loan forgiveness

So, what do those employers do who have already filed for PPP round one forgiveness? We will have to keep apprised for guidance on this nuance, as it likely affects many businesses.

Some more welcome news for businesses Under Act Section 207: the ERC is now extended through June 30, 2021. The first eligibility test related to the 2021 credits has been eased to only a 20% reduction in gross receipts. Note, this is still in reference to a quarter-over-quarter comparison to 2019 gross receipts. Employers are now eligible for a credit of up to 70% employee wages rather than the 50% eligibility that remains for 2020 credits, and rather than limiting wages per employee to $10,000 per year, this limit is applied per quarter in 2021.  This equates to a maximum of $14,000 in credits per employee for 2021 as compared to the 2020 cap of $5,000 per employee. 

The last major benefit for 2021 ERC calculations is the increase on allowable company size when determining qualified wages. For 2020, employers with 100 or fewer employees could include all wages paid to employees towards this credit. For 2021, this limit is adjusted to 500 or fewer.  Keep in mind, employers with more than 500 employees may still be eligible for a credit; their definition of qualified wages is just limited.

It is important to acknowledge the impact of both PPP and ERC being made available for businesses. Here’s a very simple example of how a company may benefit from both during 2021:

Company A, a manufacturer, has 60 employees, each earning a $50,000 annual salary. Company A meets the gross receipts test for Q1 & Q2 2021 for ERC and for a second round of PPP funding, receiving in January 2021.

             The ERC calculation should be addressed first, as wages are qualified for this credit prior to PPP forgiveness eligibility.  

Company A’s 2021 ERC would be:

70% x $10,000 qualified wages x 60 employees x 2 eligible quarters = $840,000 ERC

Company A also received PPP round two funding of $605,000. The $1,200,000 wages ($10,000 per employee x 60 employees x 2 quarters) used to calculate the Employee Retention Credits cannot be included in wages paid for Company A’s PPP forgiveness application. This means the ERC may limit PPP forgiveness.

Company A will likely spend over $1.3M in wages over their 24-week PPP forgiveness period, meaning only the wages in excess of $1.2M will be eligible for PPP forgiveness purposes. Since PPP loans must be at least 60% spent on payroll, you may have to pay back a portion of the loan.

Moral of the story: Many businesses who qualify for PPP and ERC can benefit from both, so don’t overlook ERC available to you. Just keep in mind the credits you may receive when filing your 941’s could limit your total PPP forgiveness.

In Summary

Overall, the 2020 and 2021 ERC changes are positive for employers and their employees. Businesses just have to keep in mind the computational changes are only effective for the first half of 2021 and forward. There’s still a lot to learn and interpret as we apply these changes in practice in the coming months. I would encourage you to stay in close contact with your GJM tax advisory team as you make decisions for your business in the days and weeks to come. You can also find further resources in the GJM online Covid-19 Resource Center.

Onward! 

Lauren Webber, CPA, EA is a tax supervisor at Gilmore Jasion Mahler with five years of public accounting experience. Lauren specializes in tax planning and consulting for individuals and businesses in a variety of areas including construction & real estate, and manufacturing & distribution. She has experience with flow-through entities and multi-state taxation, along with a deep understanding of the research & development federal tax credit rules. She is a member of the American Institute of Certified Public Accountants (AICPA).

Established in 1996, Gilmore Jasion Mahler, LTD (GJM) is the largest public accounting firm in Northwest Ohio, with offices in Maumee and Findlay. Locally owned, GJM offers cloud-based accounting and provides comprehensive services including assurance, business advisory, tax, risk advisory, healthcare management and outsourced accounting. The Firm’s professionals specialize in industries including construction & real estate, healthcare, manufacturing & distribution and utilities.

New Support for Your Business in 2021: What You Need to Know

With a flurry of recent developments related to pandemic aid for businesses, as well as the coming change in leadership in our nation’s capital, we think it’s important to provide some perspective, insight and information to help our clients, and all businesses make the decisions they face as the new year gets underway.

$900 Billion Stimulus Package

The Consolidated Appropriations Act of 2021, signed into law in late December brings more relief for businesses. Here is a recap of some important facts:

  • Allows tax deductibility of expenses paid with forgiven Paycheck Protection Program (PPP) loan funds, an issue that had been of great concern for businesses
  • Establishes that Economic Injury Disaster Loan (EIDL) grants and SBA 7(a) loan payments paid by the SBA are not taxable income
  • Ends mandate to provide Emergency Paid Sick Leave (EPSL)
  • Continuation of additional payments of unemployment insurance
  • Continuation and expansion of PPP:
  • Original PPP reopened applications for first time borrowers or borrowers who have returned loans due to lack of guidance
  • List of eligible participants expanded to include more nonprofits
  • EIDL grants of $10,000 are no longer required to be deducted from the PPP loan forgiveness amount

Second round of PPP loans made available

  •  $284 billion, targeting smaller businesses and those more negatively impacted by the pandemic
  • Businesses must show a 25% decrease in revenue in one of the four quarters of 2020 as compared to the same quarter in 2019
  • Loan dollars can be used to cover more expenses including some operation costs, worker protection and property damage
  • Application form is now available and the SBA portal may begin accepting applications as early as Monday, January 11, 2021

PPP Forgiveness:

SBA to issue a new one-page loan forgiveness application for loans under $150,000

Employee Retention Tax Credit

The new stimulus package also extends and expands the Employee Retention Credit (ERC) which is designed to support businesses keeping employees on payroll during the pandemic. The ERC has been extended through June of 2021 and makes it available for PPP loan borrowers.

More Resources

GJM Stimulus Package Webinar Recording (December 28)

GJM Assurance partner Bob Bobek, CPA co-presented a webinar on the new stimulus package on December 28th in partnership with The Employers’ Association. You can watch the webinar and access the slides in the GJM COVID-19 Resource Center.

GJM Tax Policy Uncertainty Webinar (January 14, 2021)

The transition to the Biden administration and to a democratic majority in the Senate has some feeling uncertain about potential tax increases in the months ahead. The recent unrest at the Capital Building has added to the uneasiness. We are hearing from some clients asking if they should take aggressive measures soon to protect themselves and their businesses from potential tax increases on the way. GJM Tax Partner Charlie Heid, CPA will host a brief, informal webinar “Coffee with Charlie” on Thursday, January 14 at from 3-3:30 pm to help answer questions and alleviate concerns. The half hour webinar will include a short presentation followed by a Q&A session.

The new stimulus package and other measures will surely help businesses in the months ahead. Should you have any questions or concerns, please connect with your GJM team. As always, we are here to help as your trusted advisors.

Established in 1996, Gilmore Jasion Mahler, LTD (GJM) is the largest public accounting firm in Northwest Ohio, with offices in Maumee and Findlay. Locally owned, GJM offers cloud-based accounting and provides comprehensive services including assurance, business advisory, tax, risk advisory, healthcare management and outsourced accounting. The Firm’s professionals specialize in industries including construction & real estate, healthcare, manufacturing & distribution and utilities.

GJM/EA COVID-19 Stimulus Webinar Recording

Congress reached a deal on a new $900 billion stimulus package just days before Christmas. The president has now signed it and stimulus checks are on their way to many Americans.

The deal comes as the pandemic surges from coast to coast, and after several months of no additional financial help from the government for struggling Americans and their businesses.

A key component of the law, and very welcome news for businesses, is the word that taxpayers will be allowed to deduct costs covered by their Paycheck Protection Program (PPP) loans. The resolution on PPP loan expenses & tax deductibility will ease some frustrations for businesses in the middle of year-end tax planning.

The stimulus package also provides more funding for a new round of PPP loans, stimulus checks for most Americans, and an extension of federal unemployment benefits, among other provisions.

GJM’s Bob Bobek, CPA co-presented a webinar in partnership with the Employers’ Association’s Bob Bethel, SPHR, SHRM-SCP on December 28. They took a closer look at what’s in the stimulus package and what it means for your family and your business. Bob Bobek also covered the latest guidance from the Small Business Administration (SBA) regarding the forgiveness questionnaire for existing Paycheck Protection loans at or over $2 million.

If you were unable to attend the webinar, you now have access to the recording. You can also access other resources in the GJM COVID-19 Resource Center

As always, you're encouraged to reach out to your GJM team with any concerns or questions.

Established in 1996, Gilmore Jasion Mahler, LTD (GJM) is the largest public accounting firm in Northwest Ohio, with offices in Maumee and Findlay. Locally owned, GJM offers cloud-based accounting and provides comprehensive services including assurance, business advisory, tax, risk advisory, healthcare management and outsourced accounting. The Firm’s professionals specialize in industries including construction & real estate, healthcare, manufacturing & distribution and utilities.   

Get to Know GJM’s Nick Bader

Nick Bader Gilmore Jasion MahlerGilmore Jasion Mahler would like to officially welcome Nick Bader to our team as a Tax Associate. You may have seen him around the office the last couple of years during his internship, but now he’s officially on board. Here’s a fun Q & A with Nick, and a chance to get to know him a bit better.

Describe your role at GJM. My role at GJM is to assist the tax department with the preparation of various tax related projects. I am willing to help out wherever I can add value, but I believe that this is where most of my time will be spent.

When did you start at GJM? I did a tax internship with the firm during busy season roughly two years ago and started full time employment on 11/2/2020.

Why did you choose the accounting industry? I chose the accounting industry after taking several different business classes in college. I enjoyed the accounting classes the most and I found them to be the most interesting. On top of that, I really enjoyed the internship experience I got in accounting and thought it would be a great career to go into.

What do you like best about accounting? The thing I like about accounting is the nature of the work itself. It combines so many things together in a way that makes me feel challenged. Also, I know that I am learning a lot of valuable skills along the way. Additionally, I enjoy that I get a good balance of working as a part of team while also getting to accomplish and develop my own work. I enjoy critical thinking and problem solving which I think accounting allows me to improve on even more.

Are you from the Toledo area originally? If not, where are you from? I grew up in Sylvania, Ohio.

What do you like about living in Northwest Ohio? My favorite part of Northwest Ohio would be weather. I know some people hate the weather here, but I enjoy that we can have 4 distinct seasons. Sometimes winter can last longer than I want it to, but I enjoy the variety of weather we get.

Nick Bader GJMWhere did you go to school? I went to the University of Toledo.

Anything you’d like to share about past work/school history? I previously interned with GJM, which was really fun and rewarding. In college I worked as the building manager of the student union and the building supervisor of the rec center.

Do you have any pets, hobbies, family? I have a pet cat. She is a tiny short haired black cat that I got from the humane society. As far as hobbies go, I enjoy basically anything that you can do outside or anything that involves competition. This summer specifically I learned how to play disc golf which was really fun. I come from a big family. I grew up with 4 brothers and 1 sister.

How do you like to spend your free time? I enjoy watching sports, spending time with friends, watching movies/tv shows, and being outside. I also spend a lot of my free time helping to lead the youth group at my church. Apart from that I also like doing nothing sometimes and just spending some time relaxing.

Favorite book? Favorite movie? I am indecisive when it comes to picking favorites, so I might just give a few for each if that is okay. For books I really enjoyed reading Ender’s Game, Fountainhead, and The Little Prince. For movies I Like all of the Lord of the Rings movies, Parasite, and basically any funny movie.

Are you involved in any community organizations, do any volunteer work? I spend a lot of my time volunteering at my church. I help run the youth group there and lead a bible study for high school kids (the picture below shows Nick leading the bible study). In years past I would volunteer for Fellowship of Christian Athletes (FCA) but I am not sure if that will happen this year due to covid.

What is something people may be surprised to find out about you? People may be surprised to find out I am a twin (Nick's twin Alexander also just came on board with GJM).

Anything else you’d like to add? I am excited to be working full time here. I am so thankful to all of you that I have talked to have been so incredibly kind and helpful to me. I am looking forward to getting to know everyone.