Year-end tax planning goes to the movies
Year-end tax planning is a bit more complex this year as many of our clients received loans through the Paycheck Protection Program. While the loan proceeds are not taxable, word is still out whether the business expenses paid for with the loan will be deductible. Therefore, we are preparing tax projections with two scenarios in […]
PPP loan forgiveness FAQs released
The Small Business Administration released this week its first round of FAQs regarding the loan forgiveness process for Paycheck Protection Program Loans. These FAQs, which serve as guidance on the provisions of the CARES Act, follow closely to what we have been advising our clients already as we prepare their applications for PPP Loan forgiveness. […]
Payroll tax deferral OK with PPP loan – but be careful
The ability to defer certain payroll taxes for employers who received a PPP loan is one of the benefits of the recently enacted Payroll Protection Program Flexibility Act. When the CARES Act first passed in April, employers had the option to defer paying the employer portion of Social Security tax through the end of 2020, […]
SBA revises the PPP loan forgiveness application
On June 17th, the SBA, in consultation with the Treasury Department, issued a revised, “borrower-friendly” Paycheck Protection Program (PPP) loan forgiveness application implementing the PPP Flexibility Act of 2020, signed into law by President Trump on June 5, 2020. In addition to revising the full forgiveness application, SBA also published a new EZ version of […]
What’s next for Emergency Sick Leave now that school is out for summer?
In the early days of the COVID-19 pandemic, Congress passed the Families First Coronavirus Response Act that, in part, provides emergency sick leave and expanded family and medical leave for employees who need to care for children whose schools had been closed as a result of the virus. Now that the school year is ending […]
Keep all records related to PPP loans and forgiveness application
“Uncertainty” is a word that defines the era of coronavirus, but there is one thing that is certain: You must keep documentation of everything you do. Guidance continues to emerge, and more legislative changes have been made to the Paycheck Protection Program with the PPP Flexibility Act. How this will impact your loans or your […]
Congress passes Paycheck Protection Flexibility Act
Changes are now underway for the Paycheck Protection Program, altering criteria for business owners to be eligible for loan forgiveness. The Paycheck Protection Flexibility Act makes a number of retroactive improvements to the PPP forgiveness criteria, including extending the time borrowers have to spend the funds, increasing the percentage of loan funds allowed to be […]
SBA: Any PPP loan less than $2 million deemed ‘necessary’
The Treasury Department and Small Business Administration clarified its rules today regarding small business owners’ need to certify the necessity of receiving loans through the Paycheck Protection Program One requirement to qualify for forgiveness of a PPP loan is that all borrowers must certify in good faith when submitting their applications that “current economic uncertainty makes […]
Coronavirus and Economic Impact Payments FAQs from IRS
Click below for a list of frequently asked questions regarding coronavirus-related economic impact payments and other resources from the IRS.gov website: https://www.irs.gov/coronavirus/coronavirus-and-economic-impact-payments-resources-and-guidance
IRS: PPP loan expenses not deductible
The IRS issued new guidance April 30 evening clarifying how the expenses paid with the loan proceeds through the Paycheck Protection Program are to be treated for tax purposes. According to the IRS, the forgivable portion of a PPP loan will not be included as gross income and will not be subject to taxation. However, […]