Dear Clients –
We hope this message finds you well and in good health as we continue to contend with the Coronavirus and its many challenges. During these difficult times, the various stimulus packages are providing some financial relief for Americans. Please find below information for both businesses and individuals.
The Small Business Administration and the Department of Treasury have issued Frequently Asked Questions (FAQs) on the Paycheck Protection Program Loans April 6, 2020.
Key clarifications include:
- Clear guidance that the $100,000 payroll cap is on compensation only and NOT on a combination of compensation and benefits
- Acceptance that employer paid state unemployment is included in payroll costs
- Clarification that the determination period may be either calendar year 2019 or previous 12 months
- States that payroll costs include gross employee compensation without excluding any employee withholdings (such as FICA or federal income tax), however payroll costs do not include any employer-paid FICA (Social Security and Medicare) or FUTA (unemployment)
- Allows companies who utilize a common paymaster to qualify for a loan
- Indicates that if you applied for your PPP loan prior to this additional guidance was released you can leave as is. However, if your loan is not yet processed by the SBA, you can revise your applications.
Link to the SBA PPP FAQs Please Click Here
We have updated our Small Business Administration Payroll Protection Program summary on our website. Please Click Here
INDIVIDUALS – REMINDERS:
- The following items have been postponed (no extension required) to July 15, 2020:
- The filing deadline for both Federal and NYS income tax (personal and corporate), fiduciary and gift tax returns (39 states have followed Federal with the postponement)
- The payment of balances due for the above-mentioned filings (no caps on the amount as was originally stated)
- Funding of Individual Retirement Accounts (IRAs), SEP, Profit-sharing plans (all plans)
- Funding of Health Savings Accounts
- First quarter estimated tax payments (note that the second quarter estimated payment continues to be due 6/15/20)
Our goal is to keep you informed and up to date in regards to the changes that have taken place. Please contact us with any questions. We appreciate the opportunity to serve you!
Davie Kaplan, CPA, P.C.
Jennifer R. Jones, CEO