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Angel Chiariello

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Many More Businesses Now Eligible for COVID Employee Retention Tax Credits

Posted by Angel Chiariello on Wed, Jan 13, 2021

The Employee Retention Tax Credit (ERTC) provision of the 2020 CARES Act was overshadowed by the PPP loan program, primarily because the original ERTC provisions prohibited an employer with a PPP loan from claiming ERTCs.

The 2021 Consolidated Appropriations Act, passed just weeks ago and most known for allowing businesses a tax deduction for the expenses paid with tax-free PPP funds, made sweeping changes to the ERTC rules as well. Most notably, lawmakers removed the provision disallowing businesses with PPP loans to participate in the ERTC program.

As a result, these valuable credits are now available to more business owners for wages paid in Q1 & Q2, 2021 (and possibly for wages paid in 2020). For more information about the original provisions of this program, see our article here.

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Topics: Business tax planning, 2020 Coronavirus

PPP Loan Forgiveness Application: Preparation Tips for McDonald’s Franchisees

Posted by Angel Chiariello on Thu, Jul 23, 2020

As you reach the end of your covered period for your Paycheck Protection Program loan – if going with the 8-week option – here are some tips for getting ready for the forgiveness application process.

You may have seen our recent article about the new EZ forgiveness application. Eligibility for that application is a matter of interpretation.

Whether you can or can’t use that application will depend on your ability to and comfort with certifying to the SBA that you have not been able to operate at the same level of business activity during your covered period as you did prior to Feb. 15, 2020. Your records, both financial and otherwise, would need to show that your business activity was impacted due to government mandates related to COVID.

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Topics: McDonald's management

McDonald’s Franchisees: Be Aware to Combat Employee Fraud

Posted by Angel Chiariello on Tue, Nov 5, 2019

Hardworking employees are to be treasured and valued for the contributions they make to your restaurants, but unfortunately as any experienced restaurant owner knows, not every employee is earnest.

Employee fraud is regrettably commonplace in many businesses. Near our office in St. Petersburg, Fla., there was a recent case involving a Dunkin’ doughnut shop manager who created a fake or “ghost” employee and collected and cashed their paychecks.

Ghost employees are a real problem for many businesses with a lot of employee turnover, like McDonald’s and other quick-service restaurants. It’s among the most common types of payroll fraud, according to the Association of Certified Fraud Examiners.

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Topics: McDonald's management

The Must-Know Tax Reform Business Changes for McDonald’s Franchisees

Posted by Angel Chiariello on Tue, Sep 3, 2019

The largest tax change in a generation was made almost two years ago, but it’s still big news for small businesses. In fact, final regulations are still being written. As we prepare to head into fall, this is a good time to think strategically about your tax situation.

This article will highlight a couple of key business tax changes for McDonald’s franchisees, specifically depreciation changes and something new called the qualified business income deduction.

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Topics: McDonald's management, 2017 Federal Tax Reform

The Exit Path: Transfer Ownership of Business to Active Family Members

Posted by Angel Chiariello on Thu, Oct 11, 2018

In many ways, selling to a third party is far easier than selling to a family member – it is usually less emotional, and the focus is entirely on transferring the business.

To sell to a family member, it requires a plan for working with your family, transferring your knowledge and transferring the business. Of course, from our experience, the extra effort is worth it when you are rewarded with seeing your business continue on as a legacy for generations to come.

To accomplish your exit plan, you will need to plan early and communicate openly and often. Both parents and Next Gens must set expectations, and put the plan in writing. If you have an exit planning team, they can help keep you focused on achieving your goals and keep you on track in the process.

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Topics: McDonald's management, Succession planning

McDonald's Owner/Operators Can Reap Benefits from Extended Work Opportunity Tax Credit

Posted by Angel Chiariello on Thu, Jan 14, 2016

Among the many great business tax benefits Congress approved in December was an extension and expansion of the Work Opportunity Tax Credit.

This credit is extremely beneficial to many McDonald’s Owner/Operators, and with the credit’s extension through Dec. 31, 2019, it allows for long-term tax planning.

The Protecting Americans from Tax Hikes – or PATH – Act of 2015 also includes language that makes the WOTC retroactive for hires starting on Jan. 1, 2015. It also for the first time includes the long-term unemployed as a qualifying category.

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Topics: McDonald's management, Business tax planning

IRS Increases Some Deductible Amounts for Small Business Purchases

Posted by Angel Chiariello on Wed, Dec 9, 2015

Since the inception of the Internal Revenue Code, the IRS and taxpayers have been at odds over whether expenditures on tangible property should be expensed in the year incurred or capitalized and depreciated over time.

Historically, the distinction between deductible repairs and capital improvements has been a tangled mess, and it has mostly been left up to the “facts & circumstances” discretion of each tax auditor. To provide some clarity, the IRS issued “repair regulations,” which became effective January 1, 2014. These new repair regulations provided a “bright line test” for the auditors when making the distinction.

The safe harbor election, which is just one part of the repair regulations, allows taxpayers to write off small dollar (de minimis) expenditures for the acquisition or improvement of property. Originally, this safe harbor threshold was set at $500, but after much discussion and feedback from various groups, the IRS has recently decided to increase it to $2,500.

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Topics: McDonald's management, Business tax planning

Own Multiple Restaurants? Consider a Management Company for Tax Savings and Other Benefits

Posted by Angel Chiariello on Wed, Jan 14, 2015

Management companies can deliver tax and non-tax benefits to improve your company’s long-term financial health.

If you own more than one restaurant, you may be able to reap substantial tax and non-tax benefits by structuring a management corporation that provides services to the restaurants you own. If you haven’t explored this strategy, you may be missing out on significant financial opportunities.

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Topics: McDonald's management

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