Updated 1/5/2021 11:00am Central Time: This page will be periodically updated to provide you with relevant information that affects your tax, business or financial circumstances, as well as Gineris & Associates operational protocols.
On 12/27, President Trump signed the most recent COVID relief package into law. As we continue to make our way through the nearly 6,000 page bill, here are the provisions that benefit both individuals and businesses.
There are discussions of the stimulus amount increasing to $2,000. A bill has passed the House of Representatives and is awaiting Senate approval.
$300 federal unemployment supplement is included through mid-March 2021. The federal eviction moratorium has also been extended.
If you got a Round 1 Paycheck Protection Program (PPP) loan, due to provisions in the new law, if you have not yet submitted your PPP forgiveness application, it could be wise to hold off on submitting it until all guidance is issued.
Economic Injury Disaster Loan (EIDL) grants are not considered income. PPP forgiveness is NOT reduced by any EIDL advance received. Businesses who got less than $10,000 in EIDL can go back and request the balance up to the full $10,000 (i.e., if you got $4000, you can request an additional $6000).
Qualified businesses are able to draw from a second round of PPP funding. The qualifications to receive the second round of funding have changed.
This new round of funding has new uses and terms that affect the amount of money you can receive and the allocation of the received funds.
Employee Retention Tax Credit
The employer credit for paid sick and family leave is extended to March 31, 2021.
The payback period for deferred payroll taxes has been extended to December 31, 2021. Currently, we do not recommend opting into payroll tax deferral in most cases.
Business meals are fully deductible for 2021 and 2022.
We will continue to monitor this bill and update this page when any new information is known.
On 10/8, SBA released rules that state PPP borrowers who have received loans of $50,000 or less are exempt from reductions in forgiveness based on:
When submitting the forgiveness form, the borrower will required to provide:
Further guidance on this application can be found here.
Here are all 6 of our webinar recordings regarding PPP.
On 8/4/2020, the SBA released an updated and very helpful Frequently Asked Questions regarding PPP loan forgiveness.
We hosted a webinar on Friday, 6/19 regarding the PPP Flexibility Act. You can access the 22-minute recording here. It discussed updated SBA guidelines (highlighted below), and helped business owners make the best decision to optimize PPP forgiveness.
Here are highlights from the latest SBA guidance on PPP Loan Forgiveness – this information may continue to evolve.
Here is the updated “EZ” PPP Loan Forgiveness Application (3508EZ), which you can use if you meet any one of these 3 criteria:
Here is the updated regular (non-EZ) PPP Forgiveness Application (revised 6/20).
Here is the updated PPP Borrower Application (revised 6/20).
On 6/5/20, the president signed the Paycheck Protection Program (PPP) Flexibility Act which includes a number of positive changes for small business owners. Most notably, the legislation includes some of the following PPP changes:
The SBA released the PPP Loan Forgiveness Application on 5/15, and also updated their Frequently Asked Questions as of 5/19. Connect with your Account Manager now regarding your PPP forgiveness strategies, and connect with them after your 8-week covered period is up to prepare your forgiveness application. Banks have advised clients to wait on completing the application until that time in the event the application itself changes or additional guidance emerges.
On May 13th, the Treasury and Small Business Administration updated their Frequently Asked Questions (Question 46) to clarify that “Any borrower that…received PPP loans…of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith and thus will not be under further audit scrutiny around the necessity of the loan. A number of clients have received communication from their banks reminding them about the “necessary” certification they made when applying for the PPP and about “returning the funds” before the safe harbor deadline. Those instructions generally apply to public companies who had access to other capital.
On April 27th, the $320 billion 2nd round of Paycheck Protection Program (PPP) funding went live. Apply if you have not. Here is the SBA Frequently Asked Questions (FAQ) regarding the PPP, updated as of 4/28/2020.
Sole Proprietors and Self-Employed Individuals (including Partners with Self-Employment Income): Updated Guidance from the SBA about the Paycheck Protection Program was released on April 14th, which describes how to calculate maximum loan amount and qualifications for loan forgiveness.
Taxpayers: Get information on your Economic Impact Payments here at the IRS website, where you can check your payment status, confirm your payment type, and enter or update bank information.
Access our free webinar and bonus resources about the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) for small business owners.
Here is the US Small Business Administration (SBA) webpage describing programs helping small businesses. This is a nice summary of the Paycheck Protection Program (PPP) and emergency loans for small businesses put out by the US Chamber of Commerce. See detailed FAQ on the PPP below.
Small businesses should strongly consider applying for the Paycheck Protection Program. (See FAQs below.) Note: SBA released Interim Final Rule guidelines late on April 2nd that clearly state that Independent Contractors are NOT counted AS EMPLOYEES as part of a payor company’s PPP loan calculation or forgiveness (since independent contractors can file for their own PPP loan). See those rules here.
Small businesses who want to apply for the SBA Economic Injury Disaster Advance Loan (EIDL) can learn more here. Note: Latest guidance from the SBA says EIDL loans will take approximately one month from application to receive approval. Also, businesses who applied for an EIDL prior to Monday 3/30/2020 will NOT receive the forgivable cash advance of up to $10,000. On 4/14/2020, the SBA clarified that EIDL applicants who applied after 3/30/2020 would qualify for up to $10,000 of a forgivable advance, based on employee headcount, with $1000 per employee being awarded.
Review the FAQs below, broken out into 5 categories – Paycheck Protection Program, Small Business, Tax, Individual Financial, and Gineris Service FAQs. If you have other questions or still need help, please contact your tax professional, account manager, or our front desk. We’re here to help you.