Tax MonitorCoronavirus/COVID-19One Big Question Answered – Unfortunately with a No.May 1, 2020 The IRS released Notice 2020-32 addressing expenses paid with PPP loan proceeds which are subsequently forgiven. The CARES Act exempts the forgiveness of the PPP loan proceeds from federal taxable income. There had been some question as to whether the expenses paid which gave rise to the forgiveness would be allowable as deductions for federal income tax purposes. The question arose from IRC… Updated Paycheck Protection Program (PPP) Loans Frequently Asked QuestionsApril 30, 2020 The U.S. Department of Treasury updated its Paycheck Protection Program Loans Frequently Asked Questions (FAQs) to add questions 38 and 39. Question 38 addresses eligibility. It provides an interpretation of the “in operation on February 15, 2020” requirement for eligibility for participation in the PPP. Under certain circumstances, the acquirer of a business or substantially all of the assets of… SBA Interim Rule on Corporate Group Limits and Qualification of Non-Bank LendersApril 30, 2020 The Treasury Department today issued interim final rule (IFR) “Business Loan Program Temporary Changes; Paycheck Protection Program-Requirements-Corporate Groups and Non-Bank and Non-Insured Depository Institution Lenders.” The IFR limits the total amount of loans available to a group of businesses majority owned, directly or indirectly, by a common parent to $20,000,000. The IFR also defines the… Additional PPP Disbursement GuidanceApril 29, 2020 Last night the United States Department of the Treasury issued a new Interim Final Rule “Business Loan Program Temporary Changes; Paycheck Protection Program-Requirements-Disbursements.” The rule provides:
A link to… New Guidance On Calculating PPP LoansApril 27, 2020 The Treasury Department issued a new guidance for borrowers on Friday, “Paycheck Protection Program How to Calculate Maximum Loan Amounts-by Business Type.” Notable in each example the guidance notes that “PPP loan forgiveness amounts will depend, in part, on the total amount spent during the eight-week period following the first disbursement of the PPP loan.) The new guidance can be downloaded … SBA 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… |
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