Tax MonitorSBA FAQ Updated on SundayApril 27, 2020 The SBA Payment Protection Loan Programs FAQs has been updated to add Question 36 that deals with borrower eligibility. In calculating the 500 employee threshold, part-time employees are counted in addition to full-time employees. Part-time employees are not counted on a FTE basis. Read the updated FAQs here. Important Note for PPP Loan Recipients About Deferring Social Security TaxesApril 23, 2020 The CARES Act allows all employers to defer certain deposits and payments of Social Security taxes this calendar year. Generally, deposits and payments of the employer’s portion of Social Security taxes may be deferred if such deposits and payments are due from March 27, 2020 through December 31, 2020. Employers must make fifty percent of their deferred deposits and payments by December 31, 2021,… PPP New FundingApril 21, 2020 The Senate approved $483 billion for the Paycheck Protection Program offered through the SBA, and the House is expected to vote later this week. Any application denied because of lack of funds or not submitted, should be resubmitted immediately. Note, some banks are still processing first round loan applications, so if you had not heard anything from your bank, you should confirm your application… The CARES Act Employee Retention Credit: Another Tool for Employers Experiencing Financial Challenges in the Wake of the COVID-19 PandemicApril 15, 2020 In COVID-19 new reality, employers are struggling to balance the retention of their employees with the survival of their business. The Employee Retention Credit under the CARES Act offers some relief. ERC Basics The Employee Retention Credit (“ERC”) allows an Eligible Employer to receive a tax credit in the amount of 50% of the Qualified Wages it pays to employees. Understanding the impact of the… COVID-19 Impact on Pooled Retirement PlansApril 15, 2020 Business disruptions and market turbulence wrought by COVID-19 have caused many employers to evaluate their qualified retirement plans. This is a prudent step for employers that are named fiduciaries of their plans because the Employee Retirement Income Security Act of 1974 (ERISA) requires fiduciaries to act for the exclusive benefit of plan participants and their beneficiaries, make decisions… Payment Protection Program (PPP) UpdateApril 14, 2020 Interim Rules released today by the SBA clarify that in calculating payroll costs for Paycheck Protection Loan, borrowers should include partner compensation up to $100,000 in these costs. There had been some question as to the appropriate treatment of partner compensation and these rules have answered that question. These rules go on to clarify that calculation of self-employed individual… The CARES Act provisions that impact tax-qualified retirement plans, including offering withdrawal options, require action by the employersApril 8, 2020 The CARES Act offers several withdrawal options for participants in certain defined “eligible retirement plans.” Employers must amend their plans if they want to be able to offer CARES Act withdrawal provisions (and the plan loan provisions described below) to employees, but the CARES Act lets employers implement the withdrawals and loans in operation and wait to amend the plan until as late as… Additional Guidance on Paycheck Protection Program LoansApril 7, 2020 The Treasury Department has just issued additional guidance on the Paycheck Protection Program (PPP) loans. The entire FAQs are available here. The inclusion of benefits in the $100,000 compensation cap has been the source of many questions. The Q&A on this issue appears below for ease of reference. Question: The CARES Act excludes from the definition of payroll costs any employee compensation in… Late Breaking Updates About the CARES Act Paycheck Protection ProgramApril 3, 2020 The Treasury Department and Small Business Administration last night issued an interim final rule on the Paycheck Protection Program. The new rule includes updates on the applicable interest rate and documentation and due diligence requirements. The SBA released an updated application. Here is the final SBA Form 2483, which will be completed by the borrower and retained by the lender with the… The Ins and Outs of the CARE Act Paycheck Protection Program – What Lenders and Borrowers Need to KnowApril 1, 2020 The Paycheck Protection Program(“PPP”) in the CARE Act authorizes up to $349 billion dollars in forgivable loans. What do you really need to know to be a lender or a successful borrower under the PPP? Jackson Kelly’s lawyers have been sorting through the guidelines and available information and layering on years of experience in representing business to help guide our clients through the CARE… Employer What Ifs for COVID-19March 26, 2020 BEFORE YOU ACT ON EMPLOYEE BENEFITS BECAUSE OF COVID-19 STRESSORS, CONSIDER: If you are considering terminating your 401(k) plan to end contribution obligations. This could have adverse consequences since the “successor plan” rule in IRS regulations currently prohibits covering the same employees in a new plan for 12 months following the termination. A plan termination also requires full vesting… Cash Flow Considerations During the Coronavirus PandemicMarch 23, 2020 Your business was shut down over night for at least two weeks if not longer. What should you do to help preserve cash flow and help keep the doors open post coronavirus shut down? Here are a couple of suggestions. Note, with regard to employees and paths taken, please refer to recent articles from Justin Harrison that address a number employee issues. First, if you have loans, talk to your bank.… |
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