The COVID-19 pandemic is unlike any other crisis we have faced in decades. As contractors continue to work back toward normalcy, it’s critical to learn from recent experience and apply those lessons to preparing for the inevitable disasters and economic downturns of the future. Review Jobs, Backlog and Expenses Take inventory of current jobs and…
Classify Carefully The classification of workers as independent contractors or employees has significant implications — both tax and nontax — for all businesses. But this issue is particularly important for construction companies, given the widespread use of subcontractors in the industry. In recent years, the IRS has been cracking down on employers that misclassify employees…
Construction companies continue to face a serious skilled labor shortage. Although demand for qualified workers has been increasing steadily over the last several years, the impact of the Great Recession continues to limit the supply of candidates to fill those jobs — yes, even all these years later. And the short- and long-term effects of…
On June 3, 2020, the U.S. Senate passed the House version of Paycheck Protection Program (PPP) legislation and the President is expected to sign the bill. The bill will triple the time allotted for small businesses and other PPP loan recipients to spend the funds and still qualify for forgiveness of the loans. The bill…
Managing construction project scope often looks solid on paper. But put boots and equipment on the ground and suddenly — or, more often, gradually — the job can go soggy as additional, unanticipated work seeps into other tasks. Sometimes you can get paid for this additional work if the owner will sign off on a…
The SBA released the Paycheck Protection Program Loan Forgiveness Application on May 15. Read below for a detailed analysis of the application. IMC is offering high-level and extensive assistance with the PPP Loan Application and Forgiveness Process. Reach out today to set up a time to discuss how it may affect your company. Chris Iannuzziciannuzzi@imc-cpa.com248.641.0005…
True to their name, recently created qualified opportunity zones (QOZs) may raise attractive opportunities for contractors. But, before taking advantage, familiarize yourself with the requirements of these projects and be on guard against their potential risks. How QOZs Work QOZs were established under the Tax Cuts and Jobs Act. They’re designed to attract investment in…
Robotic process automation (RPA) isn’t new, but improvements in the technology and shrinking costs have made it more accessible than ever. By taking over repetitive, mundane, time-consuming tasks, RPA can reduce costs, increase efficiency and productivity, minimize errors, and free up employees to focus on higher value activities. The technology holds promise for construction companies,…
A single construction dispute can turn a profitable job into a loss; multiple ones can put a contractor out of business. Here are seven strategies for avoiding them: 1. Draft contracts carefully. Ambiguous contract language is probably the most common cause of legal wrangles for contractors. Pay close attention to provisions that affect your right…
The federal government’s response to the novel coronavirus (COVID-19) has included many tax law changes. To simplify matters, let’s look at three issues that contractors should keep an eye on in light of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Maintaining Payroll As of this writing, some construction work was continuing, but…