Financial Help for Small Business & Individuals
In these unprecedented times, everyone is feeling the impact of the COVID-19 pandemic. In addition to personal health implications, COVID-19 is significantly impacting the health of small businesses across the country. Support from the federal government, like the Paycheck Protection Program (PPP), has helped many businesses weather the initial storm. Padgett has helped 889 small business clients secure nearly $58 million in relief through PPP thus far, making us uniquely equipped to help your small business manage the shifting financial landscape and navigate the loan forgiveness requirements associated with PPP.
Government agencies are committing to help but the fluidity with which this information is being shared has created many questions from a business and personal standpoint. To help, we have provided information on the most searched topics.
Who will get a stimulus check?
Individuals could receive $1,200 each, plus $500 per child! However, there are phase-outs for high income earners. The IRS will base the checks on the 2019 tax return, or 2018 if you have not yet filed this year. The funds may come via direct deposit or mailed to taxpayers in the form of debit cards, depending on how returns were filed. There are special rules for some dependents and those who are not required to file a tax return. To see if money is heading your way, give Padgett a call today!
What is the Families First Coronavirus Response Act?
In general, this Act requires small business owners with fewer than 500 employees to provide paid sick leave at $511 per day for 10 days, if certain requirements are met. Employees could also qualify for job protective leave at $200 (max of $10,000) if they are unable to work because they must care for their child whose school is closed. Although employers can receive a credit for paying employees who can’t work, there is a lot to consider. Decisions regarding retaining employees or letting them go to claim unemployment are difficult. Let us help you navigate the fine print of this Act.
Do I qualify for loan forgiveness if I received funding from the Payroll Protection Program (PPP)?
PPP provided small businesses with a needed lifeline during the COVID-19 pandemic through payroll support, mortgage and rent funding, and assistance with other debts, leases and utility payments. Initially, requirements for full loan forgiveness for PPP were more narrowly focused, but recent adjustments created by federal legislation and ongoing policy amendments have created greater flexibility. For instance, businesses that received a PPP loan now have 24 weeks to make use of the received funds and five years to repay the loans rather than two. Additionally, the payroll expenditure requirement has been loosened so small businesses can use 60 percent of the loan to cover payroll and the remaining funds to assist with other costs, such as rent and utilities. Requirements for PPP loan forgiveness are evolving and changing, so call us now for assistance!
Uncertain about your tax filing requirements and deadline?
The Treasury has granted an automatic extension to pay and file your taxes from April 15th to July 15th for individuals, corporations and non-corporate filers. Extension of time to contribute to HSA and IRA accounts are extended as well. Employers have also been granted additional time to make certain payroll deposits. Things get a little murky if you are a fiscal year filer or if you already filed your tax return with a direct withdrawal scheduled. Fear not, we can help you stay current on all your tax filings and guide you through the new deadline.