Get up to date tax information JOIN NOW
High-Touch Tax and Accounting Services for Business and Individual

Our Blogs

Tax Update for 2020 – Businesses and Employers

Posted on February 6, 2020

We are kicking off the new year with new tax breaks for businesses and employers!

 

Here are a few important things to keep in mind for the year 2020. The “Further Consolidated Appropriations Act, 2020” was signed into law on December 20, 2019. It makes many changes to the tax code, including an extension (generally through 2020) of more than 30 provisions that were set to expire or already expired.

 

 

Two other laws were passed as part of the law (The Taxpayer Certainty and Disaster Tax Relief Act of 2019 and the Setting Every Community Up for Retirement Enhancement Act).

Here are five highlights:

 

  1. Long-term part-timers can participate in 401(k)s.

For plans beginning after December 31, 2020 employees can make elective deferrals if they have worked 500 hours per year for at least three consecutive years and has met the age-21 requirement by the end of the three consecutive-year period.

  1. The employer tax credit for paid family and medical leave is extended!
  2. The Work Opportunity Tax Credit (WOTC) is extended.
  3. The medical device excise tax is repealed.
  4. The high-cost, employer-sponsored health coverage tax is repealed.

No more Cadillac Tax for tax years beginning after December 31, 2019.

 

These are only some of the provisions of the new law and do not include all of the rules involved in determining eligibility.

 

If you have any questions about your situation, don’t hesitate to contact us.