What Does Trump’s Payroll Tax Deferral Plan Mean For You?

On August 8, 2020, President Trump issued a memorandum to the Secretary of the Treasury authorizing the deferral of payroll taxes for certain employees from September 1, 2020 through December 31, 2020. Unfortunately, the memorandum leaves many more questions than answers for employers, making participation in the program an uncertain endeavor. The below discussion highlights what we know so far and what we need to learn before September 1st.

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Topics: Accounting Tips, Tax, COVID-19, payroll

Paycheck Protection Flexibility Act

Article Update: As of June 5, 2020, the president signed the Paycheck Protection Program Flexibility Act into law.

On June 4, 2020, the U.S. Senate passed the House version of a bill designed at providing more flexibility for borrowers that are utilizing the Paycheck Protection Program loans to keep their businesses afloat during the COVID-19 pandemic. With unanimous bipartisan support, the bill now passes to the president, who is expected to sign.

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Topics: Accounting Tips, Tax, coronavirus, COVID-19, CARES Act, Paycheck Protection Program, Paycheck Protection Flexibility Act, PPF, PPP Loan

Pivotal Guidance Regarding the PPP Loan Forgiveness

On Friday, May 22, 2020, the Small Business Administration issued a pair of documents containing much-needed guidance for borrowers and lenders participating in the SBA’s Paycheck Protection Program (PPP).

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Topics: Accounting Tips, Tax, coronavirus, COVID-19, CARES Act, Paycheck Protection Program

Paycheck Protection Program (PPP) Pitfalls

UPDATE: The SBA has extended the grace period to May 14, 2020.  All other aspects remain unchanged.

The Paycheck Protection Program (PPP) is one of the most influential aspects of the CARES Act legislation enacted by the U.S. Congress to combat the economic effects of the COVID-19 pandemic. In two massive tranches of funding, the PPP pumped nearly $660 billion into the economy and, through the Small Business Administration (SBA), down into the hands of small businesses that are and remain in desperate need.

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Topics: Accounting Tips, coronavirus, COVID-19, CARES Act, Paycheck Protection Program, loans

You Have Your PPP Loan, Now What?

This article was co-authored by Collin Kanelakos, Partner, Assurance Services.

 

So, you’ve submitted your SBA Paycheck Protection Program (PPP) application and you might have even received your loan proceeds, but important work still remains. It is critical for you to closely manage and account for your PPP loan proceeds, not just for cash flow purposes but for accounting purposes in order to apply for your PPP loan forgiveness. The amount of documentation you will ultimately need for the forgiveness component of this loan will be substantial, so get your process in place now to shorten the lag of this ultimate forgiveness.

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Topics: Accounting Tips, Tax, coronavirus, COVID-19, CARES Act, Paycheck Protection Program

CARES Act: Economic Impact Payments for Individuals

Posted by Lee Ann Collins, CPA, Managing Partner on Apr 7, 2020

To help individuals stay afloat during this time of economic uncertainty, the government will send up to $1,200 payments to eligible taxpayers and $2,400 for married couples filing joints returns. An additional $500 additional payment will be sent to taxpayers for each qualifying child dependent under age 17 (using the qualification rules under the Child Tax Credit).

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Topics: Accounting Tips, Tax, coronavirus, COVID-19, CARES Act

CARES Act: Business-Only Provisions

Posted by Lee Ann Collins, CPA, Managing Partner on Apr 7, 2020

Employee retention credit for employers

Eligible employers can qualify for a refundable credit against, generally, the employer’s 6.2% portion of the Social Security (OASDI) payroll tax (or against the Railroad Retirement tax) for 50% of certain wages (below) paid to employees during the COVID-19 crisis.

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Topics: Accounting Tips, Tax, coronavirus, COVID-19, CARES Act

CARES Act: Employee Retention Credit

Posted by Matt Peck, CPA, Partner, Tax Services on Apr 2, 2020

The Coronavirus Aid, Relief, and Economic Security (CARES) Act contains immediate payroll tax relief to certain employers. The employee retention credit cannot be utilized by an employer who receives a section 7(a) SBA loan or CARES loan.

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Topics: Accounting Tips, Tax, coronavirus, COVID-19, CARES Act

Comptroller’s Office Extends Texas Franchise Tax Deadline

In response to the coronavirus pandemic and following the lead of the IRS, Glenn Hegar, Comptroller for the State of Texas, announced that state franchise tax filings that are ordinarily due on May 15th are extended until July 15th.

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Topics: Accounting Tips, Tax, SALT, coronavirus, COVID-19, CARES Act

The CARES Act Update: Paycheck Protection Program

Posted by Brad Gross, CPA, Partner of Tax Services on Mar 28, 2020

On Friday, March 27th, the Coronavirus Aid, Relief, and Economic Security (CARES) Act (the Act) passed the U.S. House of Representatives and was signed into law by the president.

The CARES Act is possibly the most sweeping economic stimulus package ever and is an ambitious and much-needed shot in the arm to a flagging economy hobbled by the coronavirus.

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Topics: Accounting Tips, Tax, coronavirus, breakingnews, COVID-19, CARES Act, Paycheck Protection Program

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