This communication is intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.
Small businesses and not-for-profit organizations that apply for loan forgiveness from a Paycheck Protection Program (PPP) loan of $2 million or more should expect a government audit, according to recent statements from the U.S. Treasury and the Small Business Administration. Here’s an overview of this pandemic-relief loan program and some ideas to help facilitate the audit process.
As more industries get the green light to call their employees back to work, employers need to safeguard the health of returning workers. A comprehensive and methodical approach may be the best way to go. Here are some considerations.
Social distancing practices designed to slow the spread of novel coronavirus (COVID-19) have abruptly and dramatically suppressed global economic activity. As a result, many businesses have lowered their profit targets for 2020. But some businesses that seize opportunities may be able outperform the competition and position themselves for future growth. The keys are to pivot swiftly, communicate often, collect timely data and tweak your pivot strategy as needed.
Most expectations of the future, including the business environment, are changing as the implications of the novel coronavirus (COVID-19) pandemic sink in. Where will it take your business? Alternatively, where will you take your business, to keep it strong?
Retroactive tax-relief measures under the Coronavirus Aid, Relief, and Economic Security (CARES) Act may open up amended return opportunities to recover taxes paid in prior years. Should you or your business file an amended federal income tax return? Taxpayers that have incurred business losses, made qualified improvements to real estate or paid significant amounts of business interest expense are among those that could potentially benefit from amended returns.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides tax relief for businesses and individuals that incur losses during the novel coronavirus (COVID-19) pandemic. This article explains relief measures that allow liberalized deduction rules for losses that were previously limited by provisions in the Tax Cuts and Jobs Act. Amended federal income tax returns may be necessary to benefit from these relief measures for years that you’ve already filed returns.
Have you received the Payroll Protection Program loan approval? Make sure you’re managing the loan properly with this easy to follow best practice guideline.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act rolls back several tax-revenue-generating provisions that were included in the 2017 Tax Cuts and Jobs Act (TCJA). These CARES Act changes offer welcome tax relief in response to the coronavirus (COVID-19) crisis. One relief provision relaxes the TCJA limitation on business interest expense deductions.
The coronavirus (COVID-19) pandemic has shut down many businesses, causing widespread furloughs and layoffs. Fortunately, employers that keep workers on their payrolls may be eligible for a new refundable 50% employee retention federal income tax credit. Is your organization eligible for this tax break? And, if so, how much will it help?
This chart compares key provisions of the CARES Act such as EIDL Loans, Paycheck Protection Program, Employee Retention Credit, Delay of Employer Payroll Taxes and Expanded Unemployment.
Not sure what your best option may be? Contact your accountant or advisor today.
The Paycheck Protection Program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can be used to pay interest on mortgages, rent and utilities. However, the hallmark of the program is that the loans can be partially or fully forgivable, provided certain criteria are satisfied.
Need Help Getting Started? Discuss your situation with your PKS advisor.
The IRS is seeing a significant increase in scams as it relates to criminals trying to gather information needed for the stimulus payments. Remember, the IRS will not call, text, or email you to verify your banking information for stimulus payments.
The $2 Trillion Coronavirus Rescue Package (CARES Act) includes:
Direct cash payments to Americans through the tax system, expanded unemployment insurance, paycheck protection programs to allow small businesses to retain their employees, loans and aid to businesses and hospitals, and access to retirement funds without penalties for certain individuals.
Read more on our website to learn how the CARES Act will help individuals and businesses.
Has your business been impacted by COVID-19? Take a look at this extensive list of resources available.
Due to unprecedented circumstances surrounding COVID-19, PKS has decided to close all of our offices to public access. During this time, our team is working remotely and are accessible via phone and email. Please contact your PKS team member to coordinate the submission of your information or to arrange delivery of any work products.
The Families First Coronavirus Response Act, responds to the growing health and economic crises with provisions for paid sick leave, free testing and expanded unemployment benefits. Read this article for a breakdown of the refundable tax credits to employers and what the act includes.