Omega Accounting Solutions of Laguna Niguel, Calif., targets employers looking to leverage CARES Act tax implications
With just two weeks until the May 17 tax-filing deadline, an Orange County, Calif., accounting and essential data firm that survived California’s statewide lockdown is reaching out to other small businesses trying to make up for lost income including taking advantage of the tax-savings benefits of the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act.
Omega Accounting Solutions of Laguna Niguel is specifically helping companies leverage the CARES Act Employee Retention Tax Credit that encourages businesses to keep employees on their payroll, plus other opportunities for employers to maximize revenue and minimize expenses, both during the pandemic and as the economy reopens. Under the Act, employers can receive up to $35,000 in tax credits for each employee retained through 2021.
According to Omega CEO Jay Woods, the company has become a bit of specialist in the area – and is planning for busy days and nights throughout the 2021 business tax season, which has been extended until May 17 because of COVID-19.
In fact, given all that small companies like his have had to face during the past 18 months, Woods said he’ll even offer the advice for free. "From one small business to another, we know what it’s like and have positioned our firm to help," he said. "We believe in raising the tide for everyone because when one small firm makes it through a tough time and thrives again, we all win."
This area of expertise for Omega grew out of a number of conversations that Woods and his team had with clients and colleagues immediately after the CARES Act became law in March 2020. "What we’ve discovered is that most employers have simply been too busy keeping their businesses safely open and staff intact to understand the income and tax benefits of the CARES Act and other relief programs."
The CARES Act is a $2.2 trillion economic stimulus bill passed by the 116th U.S. Congress and signed into law by President Donald Trump in response to the economic fallout of COVID-19. Under CARES Act provisions, employers are entitled to a refundable tax credit of up to $7,000 for each employee retained during the fourth quarter of 2020, and up to $7,000 for each quarter of 2021 – for a total tax credit of up to $35,000 for each employee retained through the end of 2021. To qualify, business owners must prove financial hardship due to COVID-19.
Woods says that businesses applying for the Employee Retention Tax Credit must establish and document eligibility requirements, and accurately calculate the wage credit in consideration of Paycheck Protection Program (PPP) forgiveness and other tax credits. He also recommends that business owners work carefully with their payroll processor to maximize the cash flow timing of the tax credit.
While Woods is happy his firm has become the "go-to" agency for clients wanting to understand the CARES Act, his passion and company specialty is using customized business intelligence to help small firms maximize long-term growth. In 2020, Omega launched a Business Intelligence Division to provide firms with customized KPIs, continuously refreshed dashboards and other programs that allow them to connect data silos and take advantage of real-time opportunities in the marketplace
About Omega Accounting Solutions
Omega Accounting Solutions is a is an accounting and data firm that empowers small businesses to make informed business decisions through the production of accurate and timely books that yield honest, insightful, actionable reports. The Laguna Niguel, Calif., firm founded by Jay Woods works with CFOs, controllers, accountants and software developers to collect, integrate, analyze and present essential data that allow for healthy corporate operation and growth. In 2020, Omega launched a Business Intelligence Division to provide firms with customized programs, KPIs and continuously refreshed dashboards that allow them to connect data silos and take advantage of real-time opportunities in the marketplace. For details, go to https://omega-accounting.com/about-us/
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