Your McCarthy Update 

Marty McCarthy, CPA, CCIFP
Focused on You. Dedicated to Your Success.
January 5, 2021

Business News
(Harvard Business Review) Research: Women are better leaders during a crisis. There has been a lot said about how women have done a better job leading during the COVID-19 crisis than men. According to an analysis of 360-degree assessments conducted between March and June of this year, women were rated by those who work with them as more effective. The gap between men and women in the pandemic is even larger than previously measured, possibly indicating that women tend to perform better in a crisis. In fact, women were rated more positively on 13 of the 19 competencies that comprise overall leadership effectiveness in the authors’ assessment. Learn why.

(Construction Dive) Employers do not have to pay for certain travel time between office, telework locations, DOL says. An employee who chooses to telework for part of the day and work in an office for part of the day, and who has sufficient time to perform personal tasks in between, need not be compensated for travel time between the two locations, the U.S. Department of Labor (DOL)'s Wage and Hour Division said in one of two opinion letters published December 31.        
                               
Construction News
(Construction Dive) 2021 outlook: 6 trends that will influence construction this year. Here is some perspective to ring in the new year: “2020 bad, 2021 good.” That is the takeaway from construction observers looking ahead at the turn of the year, even as the bleakness of the pandemic surge and record deaths in the U.S. continue to weigh on their minds. Read more.
 
(Construction Dive) Experts: Construction material shortages to continue in 2021. Commercial contractors continue to battle material shortages brought on by the coronavirus pandemic, according to the Q4 2020 U.S. Chamber of Commerce Commercial Construction Index. The CCI increased by three points — from 57 in Q3 to 60 in Q4 — but is still far beneath 74, the first-quarter score prior to the pandemic. The difficulty in procuring some construction materials and the cost associated with shortages will not go away anytime soon, experts say. Read more.

COVID-19 Related News
(Accounting Today) IRS and Treasury start depositing stimulus payments. The Internal Revenue Service and the Treasury Department said that they are beginning to make direct deposits of the second round of economic impact payments for some taxpayers and will continue doing so through this week. They will start mailing out paper checks to taxpayers who do not have their direct deposit information on file. Read more.

(Bloomberg) States battle each other over billions in work-from-home taxes. The worst fiscal crisis in decades is pitting U.S. states against one another over billions in taxes from residents working from home. Learn why.

(Construction Dive) While mandatory COVID-19 sick leave expires, tax credit for employers continues. The pandemic relief package signed by President Trump on December 27 has ramifications for employers dealing with coronavirus-related sick pay issues. Although the package did not extend the sick and family leave provisions in the Families First Coronavirus Response Act (FFCRA), it did extend the FFCRA tax credit, which reimburses employers for the cost of providing FFCRA leave, through March 31, 2021. Read more.
 
(Forbes) College funding changes in the pandemic relief bill. There are several student financial aid provisions in the pandemic relief package that was included in the Consolidated Appropriations Act of 2021. Read more.

We will continue to keep you updated. Please visit our COVID-19 Resource Page for more alerts.

Feel free to contact any member of our team at (610) 828-1900 (PA) or (732) 341-3893 (NJ) with questions. Rich Higgins, CPA, managing principal – New Jersey office can be contacted at Richard.Higgins@MCC-CPAs.com. I can be reached at Marty.McCarthy@MCC-CPAs.comAs always, we are happy to help.

Stay safe,

Marty McCarthy, CPA, CCIFP
Managing Partner
McCarthy & Company

Disclaimer: This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).