News & Announcements

PPP Forgiveness Application Due date

There has been some confusion as there is a 10/31 expiration date on PPP forgiveness forms.  Forgiveness applications are NOT due on Oct 31st.  Forgiveness applications can be submitted at any time before the maturity of the loan either 2 or 5 years depending on the agreement and timing of the loan.  All payments are deferred for 10 months following the last day of a borrower’s covered period.

If you have any questions please contact Andrew Dengel at 920-921-3356 or

Social Security Wage Base Announced for 2021

The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $142,800 from $137,700.

The OASDI (old age, survivors, and disability insurance) tax rate is 6.2%, so an employee with wages up to or above the maximum in 2021 will pay $8,853.60 in tax, with the employer paying an equal amount. Self-employed Individuals pay tax at a 12.4% rate up to the limit, for a $17,707.20 maximum amount of OASDI tax.

The Medicare hospital insurance tax of 1.45% each for employees and employers, or 2.9% for the self-employed, continues to have no wage limit.

The Social Security Administration also announced a cost of living increase of 1.3% for 2021.

Form 1099-NEC has Returned for all Non-employee Compensation

Beginning with tax year 2020, the Form 1099-NEC will be required to report all non-employee compensation for any business, regardless of size, that pays at least $600 for services performed in the course of their trade or business.

The 1099-MISC will remain (with many changes) for miscellaneous sales, compensation, and proceeds not related to non-employee compensation.

The form will be due to be paper or electronically filed on or before January 31st .

*Please note that the IRS will not forward 1099-NEC to states, meaning that filers need to find a state option as well.

1099-NEC   

1099-MISC

INSTRUCTIONS FOR FORMS 1099-NEC & 1099-MISC

Meals and Entertainment Expenses

The IRS has issued final regulations relating to the limitation on tax deductions for meals and entertainment expenses.  The ruling is consistent with the preliminary guidance and understanding of the regulations and applies to expenses paid or incurred after December 31st, 2017. The regulations confirm that entertainment expenses are not deductible, but leave the door open for partial or full deductibility of meal expenses, depending on the category of food and beverage expense involved.

Read more: Meals and Entertainment Expenses

PPP Loan Forgiveness Simplified for Loans Less than $50,000

The Treasury and the Small Business Administration have announced a simplified application for borrowers with loans amounts less than $50,000.

Under the new ruling, PPP borrowers of $50,000 or less are exempted from any reductions in forgiveness based on:

  • Reductions in full-time-equivalent (FTE) employees; and
  • Reductions in employee salary or wages

The new form for simplified forgiveness can be found here.

The instructions for that new form are here.

If you have any questions about these changes, please contact Andrew Dengel at 920-921-3356 or

Second Round of WEDC Grants

The Wisconsin Economic Development Corporation (WEDC) has announced they will provide a second round of We’re All In” Small Business Grants to distribute an additional $50 million to small businesses hit hard by the COVID-19 pandemic.

The first phase of the program provided more than $65 million in grants to over 26,000 businesses statewide this summer. Despite the infusion of federal Coronavirus Aid, Relief and Economic Security (CARES) Act funds distributed by WEDC, however, many Wisconsin small businesses continue to struggle. The new round aims to provide grants of $5,000 each to 10,000 additional Wisconsin small businesses.

Applications for the grants will open at 8 a.m. Monday, Oct. 19, and close at 11:59 p.m. Monday, Nov. 2. As with the previous round of “We’re All In” Grants, awards will not be made on a first-come, first-served basis.

Read more: Second Round of WEDC Grants