Category: Auto Dealerships

The Senate has approved $320 billion in additional funding for the Paycheck Protection Program, the Small Business Administration’s business relief program that passed as part of the CARES Act on March 27, 2020. The PPP originally received $349 billion in funding to support businesses hurt by the COVID-19 pandemic. Funding quickly ran out however, as a surge in applications for relief and skyrocketing unemployment numbers reflected the significant need. The House of Representatives is expected to pass the legislation on… Read more ›

Thanks to CBM Supervisor Tom Hudson for developing the following article. On April 14, the Small Business Administration (SBA) released additional guidance that provided more information about the implementation of the Paycheck Protection Program (PPP) for self-employed taxpayers. Previously, it was not explicitly stated that taxpayers who file a Schedule C were included in the program although many interpretations of the SBA’s language indicated that they were eligible. The SBA did confirm through the most recent guidance that a taxpayer… Read more ›

On Friday, March 27, President Trump signed into legislation the Coronavirus Aid, Relief and Economic Security (CARES) Act. The $2.2 trillion legislation represents the largest stimulus package in U.S. history—dwarfing the $800 billion package signed during the 2008 financial crisis—and provides a variety of economic relief measures to mitigate the impact of the coronavirus pandemic on American society. The Act provides for six options for businesses in search of relief, which are listed below for consideration: • Paycheck Protection Program… Read more ›

The Setting Every Community Up for Retirement Enhancement (SECURE) Act is the first significant retirement-related legislation in more than a dozen years. It brings many changes that affect employers of all sizes, including some that could be particularly beneficial for smaller employers that sponsor retirement plans. Some of the changes, however, may increase the burden on employers. Here are some of the most important developments for employers, many of which took effect for plan years beginning after December 31, 2019…. Read more ›

Tax reform increased first-year bonus depreciation to 100% for most long-term assets placed in service after September 27, 2018. When using bonus depreciation, eligible assets are not subject to an annual dollar limit; except for listed property, the asset does not need to be used 50% of the time for business; and they are not limited to annual business profit. The generous depreciation percentage remains in effect from September 27, 2017, until January 1, 2023, after which it is scheduled… Read more ›

Councilor, Buchanan & Mitchell (CBM) has published guidance for businesses that receive a notice from the IRS (Letter 226J) relating to penalties associated with compliance with the Affordable Care Act. Click here to read our guidance. Please also keep in mind the important deadlines below. Don’t Miss Early 2020 Due Dates February 28, 2020 – Paper copies of Forms 1094-C and 1095-C must be filed with the IRS by this date. Employers with less than 250 employees can paper file…. Read more ›

The IRS is currently issuing the Letter 226J proposed employer-shared responsibility payment (ESRP) notice to businesses they suspect of having not complied with the 2017 tax-year Affordable Care Act requirements. The Letter identifies the amount of the proposed penalty that the business would be responsible for paying— an amount which can be steep. CBM has seen penalty amounts ranging from $3,160 to over a million dollars. CBM advises businesses that receive such a letter to respond promptly, especially since Letter… Read more ›

The U.S. Department of Labor (DOL) has released the finalized rule on overtime exemptions for white-collar workers under the Fair Labor Standards Act. The rule updates the standard salary levels for the first time since 2004. While it is expected to expand the pool of nonexempt workers by more than 1 million, it’s also more favorable to employers than a rule proposed by the Obama administration in 2016. That rule would have expanded the pool by more than 4 million… Read more ›

When disaster strikes, it can severely affect your dealership operations. According to an analysis by Cox Automotive, approximately 1 million vehicles were damaged by Hurricane Irma and Hurricane Harvey. The effect of natural disaster on a business is catastrophic, sometimes resulting in a total loss. But what about other forms of disaster? Power outages, water leaks, fire, server crashes and cyber-attacks are threats as well. Statistics vary, but the consensus is that the survival of your business depends on how… Read more ›

When it comes to measuring success, dealerships often point to the most obvious indicator on the lot, car sales. But measuring success goes much deeper than totaling up the number of cars sold in a particular week, month, or quarter. Reading and interpreting reports with a variety of metrics is a critical step to catching the hazards that threaten your dealership’s bottom line. For instance, inefficiencies are usually small enough to fly under the radar but over time are large… Read more ›