Maximizing PPP Forgiveness
Many of you have received funds from the Paycheck Protection Program (PPP) over the last couple weeks. Congratulations – we hope these funds can provide some assistance during these difficult times. In order to maximize forgiveness, you’ll need to:
- Understand the loan forgiveness rules. Click HERE for our free Fact Sheet
- Track your PPP Expenses. Download our free Loan Forgiveness Tracking Calculator HERE
- Project your costs and run different scenarios to ensure maximum forgiveness
Most businesses will need to be proactive to maximize loan forgiveness. What if your projected non-payroll costs aren’t 25% of your PPP loan; how will you increase payroll costs accordingly? You can analyze different scenarios using our free PPP Loan Forgiveness Tracking Calculator.
PPP Forgiveness Scenario Planning
If you would like TDT to help you evaluate different scenarios and strategies to maximize forgiveness, contact us today. Pricing and solutions are customized to your specific situation. Scenario planning engagements start at $595.
Additional Tax Filing Relief from the IRS
On April 9th, the IRS granted taxpayers with additional deadline relief with Notice 2020-23. The new relief applies to all taxpayers with a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020, including individuals, trusts, estates, corporations, and other nonprofit tax filers.
- Federal tax returns with a due date on or after April 1, 2020, and before July 15, 2020, now have a due date of July 15, 2020 (for filing and payment).
- Estimated tax payments previously due on June 15, 2020 are now due July 15, 2020. As a result, both first and second quarter estimates for 2020 are now due on July 15, 2020.
- This relief does NOT appear to change the due date of payroll tax returns.
Affected taxpayers do not have to file extensions or send documents to the IRS to obtain relief.
On Friday, March 27, 2020, the President signed into law, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act (H.R. 748), also referred to as the Stimulus Package. The CARES Act contains several provisions that could provide relief and support for both individuals and businesses.
The provisions for INDIVIDUALS can be found HERE, and covers:
- Recovery Checks
- Retirement Plans
- Charitable Contributions
The provisions for BUSINESSES can be found HERE, and covers:
- Paycheck Protection Program
- Employee Retention Payroll Tax Credit
- Deferral of Employer Social Security Taxes
- Bonus Depreciation
- Net Operating Loss Modifications
Targeted Small Business Sole Operator Fund
A fund has been created to support Targeted Small Businesses (TSB) with zero employees that have been economically impacted by the COVID-19 pandemic. The program offers eligible small businesses grants ranging from $5,000-$10,000 to businesses that are sole proprietors or single-member LLCs that are also TSB certified, or have an application submitted to the Iowa Economic Development Authority (IEDA) by April 10, 2020 to become TSB certified.
This program will continue to process applications on an ongoing basis until all funds are exhausted. Applications are processed in both order of receipt of application and submission of all required documents and Targeted Small Business certification approval.
Check out our fully-detailed post on the Targeted Small Business Operator Fund HERE.
Iowa Small Business Relief Fund
On Monday, March 23, Governor Reynolds announced a new Iowa Small Business Relief Program that will provide financial assistance to small businesses and tax deferrals to any Iowa businesses that have been economically impacted by the COVID-19 pandemic.
Application deadline is Tuesday, March 31, at 12 p.m.
Details are available at the Iowa Economic Development website HERE.
Unemployment Insurance Tax Payment Deadline Extension for Iowa Small Businesses
First quarter unemployment tax payments that are normally due April 30th will be delayed until the end of second quarter, July 31st this year. Employers of 50 or fewer employees and in good standing with no delinquencies in quarterly payments are eligible for this deadline extension. Employers must file their first quarter report and notify Iowa Workforce Development of intent to delay payment by Friday, April 24th at 4:30 pm. Check out the full announcement from Governor Reynolds HERE.
Families First Coronavirus Response Act
On March 18, 2020, President Trump signed the Families First Coronavirus Response Act (FFCRA) which provides paid sick leave and free coronavirus testing, expanded food assistance and unemployment benefits, and requires employers to provide additional protections for health care workers. The FFCRA becomes law on April 1, 2020 and employers must be compliant with the FFCRA provisions by this date. Wages eligible for the refundable credit are wages paid for the period from April 1, 2020 to December 31, 2020. Please note this isn’t wages paid during this period, but rather for the period that runs from 4/1 – 12/31 irrespective on what the actual pay date is.
For more information on the tax credits available to employers, CLICK HERE.
The FMLA has been expanded to provide relief to those affected by COVID-19. Check out our full article on the expansion HERE.
All employers covered by the paid sick leave and expanded family and medical leave provisions of the FFCRA (i.e., certain public sector employers and private sector employers with fewer than 500 employees) are required to post this notice by 3.26.2020.
Tax Day Extended Until July 15th
The IRS extended the tax deadline to July 15th and Iowa and many other states have extended their deadlines, as well. First quarter federal estimates and all gift tax returns and GST tax (Form 709) have been extended to July 15th, as well. Second quarter federal estimates are still due June 15th.
These extended deadlines provide welcome relief for our clients and our team. We are focusing on the following priorities:
- Small business clients are dealing with a lot of change and uncertainty. We are focusing on helping them navigate these uncertain times. Please reach out if there’s anything you need.
- Many individual clients have tax refunds coming. We have specific team members focused on getting those returns completed and filed so clients can receive their refunds.
- Our offices closed to the public last week. Our team members are continuing to work; most of them remotely. We are all focused on adapting to our remote work setups and working as efficiently as possible under the circumstances.
TDT Offices Closed to Public 3.16.2020
As a firm, we have been closely monitoring the news regarding the spread of COVID-19. Our goal is to take appropriate, measured and proactive steps based on reliable information from trusted sources to protect our team, our clients and our communities. We are already set up to work remotely and to share information electronically, so we will be closing our offices to the public to help limit the potential community spread. Our team members will continue to work; most of them remotely.
As of today, the tax filing deadlines have not changed, though we anticipate there will likely be an announcement from the IRS this week regarding extending the April 15th deadline. In the meantime, we will continue to prepare and file returns. Our team members will be available by phone, email, or video conference. If you have an in-person meeting scheduled, we will contact you regarding shifting the meeting to a virtual format.
If you have individual tax return documents to provide, please send them electronically through TaxCaddy. If you haven’t already signed up for this free tool, we are sending another TaxCaddy invite to your email address today and you should receive it within the next 24 hours. If you have any questions on using this tool, or you don’t receive your TaxCaddy invitation, please contact our office.
As returns are completed, you will be able to review and sign documents electronically. We will give you a call to let you know when your return is ready and answer any questions you may have regarding the electronic review and/or signature process.
We appreciate your understanding during this uncertain time. It’s hard to know if we are overreacting or doing too much, but for the sake of our team, our clients, and our communities, we’d rather be safe than sorry. Please reach out to your engagement team members if you have any questions.
Courtney De Ronde, CPA