The Paycheck Protection Program created by CARES has been a key piece of relief for businesses impacted by Covid-19. However, the SBA and Treasury’s 8-week limitation to use the funds and 75% requirement to spend the funds only on “payroll costs” (as defined) has caused unnecessary hardship for businesses already hurting and which are greatly in need of funds. Learn more here.
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How Scammers Are Faking WA Unemployment Claims (And What You Can Do About It)
There have been many reports about false unemployment claims being filed for people that are still employed and did not initiate the process. It’s been reported that there have been “hundreds of millions of dollars” lost to fraudulent claims so far in WA State alone. This post provides information you will need, helpful links, and additional steps you can take.
SBA and Treasury Release PPP Loan Forgiveness Application and Instructions
Friday the U.S. Small Business Administration, in consultation with the U.S Department of the Treasury, released the Paycheck Protection Program (PPP) Loan Forgiveness Application and detailed instructions for the application. The form and instructions inform borrowers how to apply for forgiveness of their PPP loans, consistent with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
NEW Safe-Harbor for Recipients of PPP Loans under $2 Million and Clarification for Those with over $2 Million in PPP Funds
Great news comes to us this week as the Treasury updated their FAQs on PPP regarding the Good Faith certification concerning the “need” for a PPP Loan. This FAQ provided much-needed clarity regarding those that accepted PPP funds and might now be second-guessing themselves with all the recent talk of audits of PPP loan requests, consideration of returning funds, etc.
Employee Retention Credit – An Alternative to the Paycheck Protection Program Loan
The Employee Retention Credit is an alternative to the Paycheck Protection Program Loan. The CARES Act includes a payroll tax credit called the Employee Retention Credit. Employers who did not obtain a PPP loan can take advantage of this credit. The following Shannon Alert provides details on the credit. What is it? Which employers Qualify? How does this credit work with other available relief? And more.
PPP and Loan Forgiveness – Things to Consider Now
You have a loan or an application pending – what’s the next step? One certainty is that the Paycheck Protection Program (PPP) has been a challenging process for many businesses. Businesses are hung up in the application process, awaiting funds, or have received funding. Regardless, it’s time to plan for the next steps to ensure that whatever funds are received, the max is forgiven.
Shannon Alert – COVID-19 Economic Impact Payments
The impact of the 2019 Novel Coronavirus (COVID-19) pandemic has been significant, changing our daily lives at a rapid pace and presenting the economy with an unprecedented challenge. There has been a wave of relief efforts and legislation aiming to minimize the impact on business and individual taxpayers alike. Learn more in this detailed post from Shannon & Associates.
5 Business Processes to Review in a Crisis
As a business owner, it’s hard to anticipate what the next disruption to our business will be. The only thing that we expect is that it will be something we don’t expect. So, how can you maintain a level of internal control and safety in the “new” business processes? What fraud risks should you revisit? Now is a good time to review the following five business processes. Get all the details in this post.
IRS Extends Tax Deadline for Nonprofits
Recently the IRS issued Notice 2020-23, giving not-for-profit organizations relief on tax returns and tax payments originally due between April 1, 2020 and July 15, 2020.
Notice 2020-23 provides relief for filers of Form 990, Form 990-EZ, Form 990-N, Form 990-T and Form 990-PF. The returns, along with any tax payments, are now automatically due July 15, 2020. Learn more.
CARES Act and Retirement Plans (What You Should Know)
The Coronavirus, Aid, Relief, and Economic Security (CARES) Act signed on March 27, 2020, contained several provisions related to eligible retirement plans. Some of the provisions are options such as the distribution and loan provisions while others are mandatory, namely the waiver of 2020 required minimum distributions. Learn more.