Nesteggg Accounting

  • Home
  • Services
    • Nesteggg Accounting
      • Payroll Services
      • Cannabis Accounting
    • Egggsact Tax, Inc.
    • Forms
      • Free Accounting Analysis
      • Business Services Agreement
      • New Corporation/LLC Request
      • New Account Setup
  • Contact Us

Economy Opening… Stop… Start…

While everyone is eager to get the economy started, get back to work, get back to normal!  What we have seen this week with States and industry openings, may be a harbinger of the new “normal” at least for some time.

We will reopen but we may not be normal for a while

Since we know social distancing will stay in place for some months to come we can pretty much rule out crowded karaoke night at the local pub, or that big stadium rock concert you bought tickets to happening. 

A few states like Texas and Georgia began opening their economies in late April.  Almost immediately cases of COVID-19 increased in the Texas panhandle, due to outbreaks in meat packing plants amongst the approximately 12,000 industry workers.  Although all plants did not reclose, early response teams were sent to test and get a handle on the outbreaks.

Ford Motor Company opened its American auto plants just recently and then was forced to shut down two plants temporarily.  While one plant had a worker test positive and was shut down for disinfecting, another production line was halted because workers tested positive at a nearby parts plant – a link in their supply chain – and were unable to continue production.

We have seen the gigantic food industry in our country try to pivot their processing, packaging, and delivery resources to retail and away from restaurants – some of whom have shuttered completely, others still open but at a much reduced rate for take out only.  While a restaurant can shut down in a day, a farmer can hardly stop a radish from growing or a hog from fattening up, try as they might.  The food that would normally go to restaurants or big events now has no where to go.  And this affects both small and large farms.  It can take years to build up a customer base for your product.  Farmers can’t just knock on doors and sell those products to a few grocery stores, and so that means loss.  Not only loss of income but loss of investment dollars that just went to waste.  And a break – if temporary – in the food chain even after reopening the economy. farmers may not have had the wherewithal, nor the confidence, to replant and regrow the next round

As we begin to reopen we may see holes popping up in several supply chains, not just food.  What products should have gone into manufacturing or retail for sale are now hanging out in storage, or worse, have ended up in landfills.  Once production starts up across the country (and the world) there is no guarantee that raw materials and goods and even services will be readily available on time – which is what a well working supply chain requires. 

Besides supply chain kinks, possible worker absenteeism from outbreaks, businesses do not thrive unless they have that magical thing called the customer.  While continuing to wear masks and maintain social distance are on reopening plans, what can’t be planned is customer confidence.  A crowded waiting room once set a glow on restaurateurs’ hearts, but that sight might make potential customers flee.  Imagine the sight of a crowded waiting room in the doctor’s office.  It could be some time before customers are open for reopening. 

And like the great recession from a decade ago, while we can’t be certain how quickly the economy recover, what we can be sure of is that at least some businesses will never reopen.  We have already lost to the coronavirus Souplantation (and possibly all salad bars for all time), JC Penney retail, and at least 30 locations of Gold’s Gym that will never reopen.

Road Map to Opening

The news can be confusing. We hear that the nation is slowly reopening. Each state has a different plan, and county, and even each city! But a few clicks can keep you informed.

Information about your city is a few clicks away

Generally speaking this is a State issue. While the Federal government can give guidelines on how a State operates – including rules about opening businesses, wearing masks, etc. – only a State can make laws that govern behavior on the ground. Even each county and city is in charge of how reopening goes in their particular municipality. Though most States require that rules should not be less restrictive than the State level.

The United States Reopening Plan is located on the official White House website if you are looking to find out what the Federal plan looks like.

To find out what affects you, start with your own State’s website. In California, for instance, there are stages which you can find out about on the California road map site. Looking for your State’s official website is simple. The IRS has culled a list of each state government website so you can easily click through to the reopening plan.

If you are looking for more specific information on COVID-19 you can go to the CDC’s website where they list the websites for the health departments in each State.

And if you are looking for information about what is required in your particular city, you can easily find your city by searching the name and “official website” which will usually end with a .org. Particularly if you own a business it is important to get the information that directly affects you. And revisit often as this is a dynamic situation and you don’t want to be either behind or ahead of the curve.

Tried Calling?

In response to the increased requests for information the Internal Revenue Service is adding 3,500 telephone representatives to answer some of the most common questions about Economic Impact Payments.

Calling to find out about payment now easier

Though that number may seem abundant it certainly will not completely eliminate long hold times if you do choose to call. The IRS continues to encourage the use of IRS.gov to find answers. If you do call answers for most Economic Impact Payment questions will be available on the automated message for people who call the phone number provided in the letter (Notice 1444). Those who need additional assistance at the conclusion of the message will have the option of talking to a telephone representative.

The IRS regularly posts new and updated answers to the most frequently asked questions about Economic Impact Payments and the Get My Payment tool. Those who wish to know the status of their Economic Impact Payment are reminded to check Get My Payment regularly; the information is frequently updated as the IRS continues to process the remaining payments for delivery.

For those who are eligible for an Economic Impact Payment but aren’t required to file a tax return, the IRS reminds them the Non-Filers tool also remains available in English or Spanish for them to register for a payment.

Free Credit Reports

Normally all consumers are entitled to a free credit report from each of the three major reporting agencies once a year. This was provided by the Fair Credit Reporting Act (FCRA) which required Equifax, Experian, and TransUnion to provide you with a free copy of your credit report, at your request, once every 12 months. And this is enforced by the Federal Trade Commission (FTC), the nation’s consumer protection agency.

Free weekly reports now available

Now, through April 2021, all three reporting agencies will be offering one free report weekly so that you can more closely monitor your credit. You can got to AnnualCreditReport.com to request your copies.

The credit agencies cull information from all your lenders and determine your credit worthiness based on how much you earn, how much you owe, and how much credit you have available to you. They also take into account your payment history, whether you have been chronically late, or always on time paying your creditors, medical bills, and sometimes even rent. It is important – especially if you are going to be requesting a new loan (credit card, mortgage, car loan, etc.) in the near future – to make sure all of the information on your report is up to date and accurate.

CA License Extensions for Cannabis Business

Although cannabis businesses cannot avail themselves of the federal relief response to COVID-19, the California state cannabis licensing boards are offering some relief. If your license expires between May 14 and June 30, 2020 you can request a deferment of up to 60 days from renewal fees.

Some cannabis businesses may be eligible for some fee and tax relief

Licensees must submit a written Request for Regulatory Relief to be considered for a license fee deferral. Deferral requests will begin to be accepting immediately. 

Although you can simply write requesting relief there is an optional form which can be filled out to request relief. All requests should be sent by email to MCLS@cdph.ca.gov. If not using the form be sure to include the business name, license, premises address, the length of the deferral request, and the name of the owner submitting the request.

Cannabis businesses may also be able to avail themselves of tax relief. The CDTFA has offered some tax deferrals to businesses.

Visit CA.gov to see the state’s response to COVID-19.

Next Page »

Recent Posts

  • Economy Opening… Stop… Start…
  • Road Map to Opening
  • Tried Calling?
  • Free Credit Reports
  • CA License Extensions for Cannabis Business
  • What Are Libraries Doing Now
  • Cannabis Markup to Remain the 80%
  • Time to Retire?

Archives

  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018

Categories

  • Cannabis Compliant Accounting + Tax
  • NestEggg's Small Business HELP
  • News
  • Uncategorized

Stay Connected

Nesteggg Facebook

The Nesteggg Group ©2019
All Rights Reserved

Get in Touch

1127 St. Paul Ave
Tacoma WA 98421

1-(888) 987-NEST

accounting@nesteggg.com

Web Design & Maintenance by AquaZebra

constant contact

Copyright © 2021 · Executive Pro Theme on Genesis Framework · WordPress · Log in