Category: BWK News

Tax Bill Provides Relief for Minnesota Businesses and Residents

July 22, 2021  |  Barton Walter and Krier

Earlier this month, the Minnesota Legislature passed a tax bill to finish the proposed $52 billion budget and avert a partial state government shutdown. Both legislative chambers passed the bill in a special session that was necessary after lawmakers reached an impasse and failed to complete the job before the end of the fiscal year in June. The bipartisan omnibus bill was approved and signed into law by Governor Tim Walz on July 1, 2021. Read on as we take a closer look at the new tax bill and how it provides much needed relief for Minnesota businesses and residents. Conformity to federal tax law The bill includes conforming to selected federal tax changes enacted by Congress since December 31, 2018. In addition, it solidifies a proposal that endorses an initial agreement between the governor and the legislature regarding COVID-relief for Minnesota businesses and individuals. Under the new law, businesses that received funds as part of the Paycheck Protection Program (PPP) will now be allowed to fully deduct the amount on their state income taxes. Moreover, workers who collect payments from unemployment insurance (UI) will be able to deduct them up to $10,200. Other highlights from the bill While the bill focuses primarily on COVID relief and K-12 education, it also includes changes […]

Read More

What You Need to Know

January 21, 2021  |  Barton Walter and Krier

Small business still reeling from the effects of the pandemic received some welcomed news in the form of additional funding for the Paycheck Protection Program (PPP). The Second Draw loan program provides an additional $284 billion for small businesses and makes loan forgiveness easier if the bulk of the funds are used for payroll and other expenses related to COVID-19. Read on as we discuss what you need to know about PPP 2.0. What is PPP? PPP is a forgivable loan program established by the CARES Act, which provides economic relief to individuals, workers, and small businesses affected by the COVID-19 crisis. PPP loans help businesses keep workers employed during the pandemic. The first round of PPP loans started in April 2020 but ran out in a matter of weeks as panicked businesses flooded the U.S. Small Business Administration (SBA) with applications. According to the terms of the loan established by the U.S. Treasury, payments can be deferred for borrowers who apply for loan forgiveness. If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period. Starting on January 13, 2021 through March 31, 2021, eligible businesses may apply for the Second Draw PPP loan. Who qualifies for PPP 2.0? Generally, the same […]

Read More