Government Contracting

It is essential for a provider of goods or services to the government to understand the government contracting industry regulations and standards. We recognize the importance of complying with government standards and provide sound, pertinent advice to our clients. We have experience with the Federal Acquisition Regulation (FAR) and helping new businesses in need of assistance with the government procurement process. We are committed to guiding you on this important first step in becoming a supplier to the government.

Government Contracting Industry Services We Provide: 

• Plan, calculate and forecast your direct and indirect rates

• Assist you in understanding the FAR and how it relates to your contracts

• Prepare your annual incurred cost submission

• Set up and review your accounting system to ensure compliance with the FAR

• Set up your time and billing system in accordance with the FAR

• Manage various DCAA audits including pre and post award audits, accounting system reviews, and audits of your incurred cost submissions

• Provide overhead rate audits as required by various government agencies

• Review executive compensation structure and FAR allowability by examining comprehensive salary surveys

• Prepare and submit bid proposals

• Provide interim and year end financial statements

• Develop comprehensive income tax management strategies

• Prepare interim and year end tax projections

• Provide income and estate tax planning for executives and business owners

• Perform analysis of sales, use, excise and personal property tax savings

• Prepare income tax returns

• Perform strategic planning

• Plan for business continuity and succession

IRS Addresses the President’s Executive Order on Employee Payroll Tax Deferral in Notice 2020-65

By Tax Department | September 2, 2020

Update:  Guidance released on August 28th clarified that taxes deferred must be withheld and remitted by employers ratably between 1/1/21 – 4/30/21.  More information is available here. On August 28, 2020, the IRS issued Notice 2020-65 that provides some needed guidance for employers wondering whether and how to comply with the employee payroll tax deferral described in…

Important Information About IRS Tax Notices

By Tax Department | August 31, 2020

Over the past few months, taxpayers who have sent payments to the IRS have still been receiving balance due notices. This is due to an IRS backlog in processing mail because of COVID-19 related closures. In response to a letter from the chairman of the House Ways & Means Committee, the IRS is working to…

IRS Delivers Temporary Midyear Relief to 401(K) and 403(B) Safe Harbor Plans

By Hertzbach | August 21, 2020

Plan sponsors that have already or are considering reducing or suspending contributions to their safe harbor 401(k) or 403(b) plans as a result of the coronavirus pandemic now have helpful relief thanks to new guidance from the Internal Revenue Service (IRS). In Notice 2020-52, the IRS recognized that many employers are facing unprecedented financial challenges as…

President Enacts Option to Defer Certain Payroll Taxes Until the End Of 2020

By Hertzbach | August 17, 2020

On August 8, 2020, President Trump issued an executive order which will allow deferral of certain payroll tax payments. This action only applies to employees who generally earn less than $4,000 per biweekly pay period (approximately $2,000 per week or $104,000 annually). Such an employee may temporarily defer their portion of Social Security tax (6.2%).…

Additional Changes to SBA PPP FAQ on August 4, 2020

By Hertzbach | August 11, 2020

Upcoming Sales Tax Holidays

By Tax Department | August 7, 2020

Maryland and Virginia are holding sales tax holidays in the month of August. The “Shop Maryland Tax-Free Week” for 2020 is Sunday, August 9 – Saturday, August 15. Virginia is holding its annual sales tax holiday on August 7-9, 2020. See below for more details. Maryland: Dates: August 9-15 Items Included: Qualifying apparel and footwear…

Borrower Accounting for PPP Loans

By Hertzbach | August 4, 2020

Although the legal form of the PPP loan is debt, some believe the loan is, in substance, a government grant. This has caused confusion on how borrowers should account for the loans under Generally Accepted Accounting Principles (GAAP). There is no guidance in existing GAAP that specifically addresses the accounting for forgivable loans obtained from,…

Notice: Paycheck Protection Program has reopened.

By Hertzbach | July 6, 2020

The Paycheck Protection Program began accepting new applications July 6, 2020, at 9:00 AM EDT in response to the Paycheck Protection Program Extension Act. The new deadline to apply for a Paycheck Protection Program loan is August 8, 2020.  

IRS Confirms July 15th Deadline Won’t be Pushed Back Again

By Tax Department | June 30, 2020

On June 29, 2020 the IRS confirmed that the July 15th tax deadline will not be pushed off again.  Taxpayers who will not be able to file their returns by this date should file automatic extensions.  However, taxpayers that will owe taxes will still need to pay by July 15th, or face penalties and interest.…

New PPP Loan Forgiveness Applications

By Hertzbach | June 18, 2020

This article was published on June 18, 2020. The SBA has finally released updated Paycheck Protection Program (PPP) Loan Forgiveness Applications and instructions. You read that right, two forgiveness applications were released. The initially released PPP Loan Forgiveness Application (Form 3508) combined the instructions and the various parts of the application into a single 11…

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