Bsquared wants to let everyone know that we are thinking of you and working diligently in the background to ensure all the information pouring in is readily available. We will continue to keep an eye on things as they progress and ensure we help you maximize keeping finances in order during the shutdowns, as applicable.
There is a lot of information here, so please take the time to note what relates to you, your business and your employees as applicable only. Every situation will be different, however, so please let us know what questions you have , though I will need to schedule time over the few next weeks to address them individually with each client. Also, if you need help with applying for any programs or setting things up, please let us know and we will do our best to work through them in the order received or most urgent.
Below are current items we’ve found in researching changes to programs in supporting those out of work for being ordered to isolate or cannot work. Hopefully you and your families are not sick, so I will focus on everyone else. Thus far, where most of our clients are located in Florida and Missouri are not ordering a state-wide shutdown, but both states have some regions shutdown.
Stimulus package: Still being finalized and payments delayed through May most likely. Under the plan as it was being negotiated, single Americans would receive $1,200, married couples would get $2,400, and parents would see $500 for each child under age 17. However, the payments would start to phase out for individuals with adjusted gross incomes of more than $75,000, and those making more than $99,000 would not qualify at all. The thresholds are doubled for couples. https://fox2now.com/news/senate-stimulus-deal-includes-individual-checks-but-dont-expect-the-money-until-at-least-may/ Note that there are business stimulus packages as a part of this plan that haven’t been fully released as of yet.
Tax filings for 2019:
The IRS has moved the filing and payment due dates for tax returns to 7/15/20, instead of 4/15/20. There will be no interest or penalties associated with balances due according to this change.
Unemployment: If you are NOT able to process payroll for yourself or employees and need to apply, reach out to the local state agency for applying for unemployment during this time.
SBA Loan: The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible, a personal guarantor is required, and long-term repayment plans are available. Illinois, Arkansas, and the many counties in Missouri are currently eligible. They may be used to pay fixed debts, payroll, rent, accounts payable and other bills that can’t be paid because of the disaster’s impact, but NOT to refinance other debt. (see attached for more information as well as forms to create.) – Certain NON-Profits also eligible!
SBA Express: – Equates to 250% of a month’s worth of salary for business owners.
Paid Leave Benefits x 2 (read thoroughly):FAMILIES FIRST CORONAVIRUS RESPONSE ACT (effective 4/2/20) – this only applies to employees NOT getting paid for work or their employer OR the employer due to business is shut down and unable to pay employees. The Federal government is providing Employers a 100% reimbursement of the mandated wages paid under the Act
All employers with 500 or fewer employees are required to pay up to 2 weeks (80 hours) of paid sick leave and 10 weeks of paid family leave for employees who are unable to work or telework as a result of one of the following reasons between now and 12/31/20. This is true UNLESS you have less than 50 employees and cannot pay the leave pay.
Any wages paid as coronavirus sick or family leave aren’t subject to the employer’s portion of Social Security tax.
Sick Leave Benefits:(Private Employers with less than 500 employees and all public employers)
• Full time workers get up to 80 hours of sick leave and 10 weeks of paid family leave
• Part time workers get sick leave for the average number of hours they work over a 2 week period
Reasons an employee can take paid leave:
• Subject to a federal, state or local coronavirus quarantine or isolation order; – if your city or state are closed
• Advised by a health care provider to self-quarantine due to coronavirus concerns;
• Experiencing coronavirus symptoms and seeking a medical diagnosis;
• Caring for someone else who is subject to a coronavirus-related federal, state or local quarantine or isolation order, or who has been advised by a health care provider to self-quarantine due to coronavirus-related concerns;
• Caring for a son or daughter if the child’s school or daycare has been closed, or the child’s care provider is unavailable, due to coronavirus precautions; or – this one affects anyone with children and needing to stay home!
• Experiencing any other substantially similar condition specified by the Secretary of Health and Human Services.
• Sick or quarantined get full pay (up to $511 per day, $5,110 in total)
• Caring for another person on leave (up to $200 per day, $2,000 in total)
Tax Credits: – for employers only
• Refundable tax credits against the 6.2% Social Security Employer tax.
• Employers are also given additional payroll tax credit for group health plan costs on coronavirus sick or family leave
Paid Sick Leave Benefits:
• In addition to 2 weeks of paid sick leave, the Act provides for up to 10 weeks of paid family leave for employees who are unable to work or telework because school or childcare is closed or unavailable for the employee’s son or daughter under age 18. To qualify for this benefit, the employee must have been employed for at least 30 days prior to missing work. The first 10 days of leave may be considered unpaid (because the employee would qualify for the Paid Sick Leave, above).
• After the first 10 days, the employee is eligible for Paid Family Leave of up to 2/3rds of their normal pay for their normally scheduled hours with a maximum of $200 per day for a period of 10 weeks ($10,000 per employee maximum).
• Employer Credit- Similar to the credit for Paid Sick Leave, employers who make Paid Family Leave payments will receive a credit for 100% of the wages paid (up to $200 per day) plus a pro-rated portion of employer-paid health insurance costs against their Form 941 payroll tax liability. Expected credits can be withheld from normal 941 payroll deposits or refunded to the employer via an advanced refund request.
Thank you for trusting us to protect your business and families during this difficult time and we pray you are all staying safe!
***We will continue to research and provide updates as new information is released.***
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