It’s now August and we are on the verge of kicking off a new school year that will look like no other. As Congress moves closer to a second COVID-19 relief package, we will be covering some news on the Paycheck Protection Program (PPP), Employee Retention Tax Credits (ERTC) and of course, more updates and reminders.
PPP Loan Forgiveness Applications
As a follow-up to our last communication, there is no need to rush to apply for PPP loan forgiveness at this time. There are a number of reasons to exercise some patience here, not the least of which is the expected second round of COVID-19 relief, which could include changes to the loan forgiveness requirements. Further, it will take lenders some time to get their own portals properly set up to accept applications from borrowers. Finally, you have 10 months from the time your covered period ends to submit the application. This allows plenty of time to plan for the maximum amount of loan forgiveness. More details on this can found here in a recent article in the Journal of Accountancy. Additionally, the Small Business Administration has just issued a new set of FAQ’s here this past Tuesday.
Employee Retention Tax Credit
If your business did not receive a PPP loan, you may still benefit from the ERTC. The credit is equal to 50% of each employee’s qualified wages up to $10,000 (maximum credit of $5,000 per employee). The wages must be earned between March 12, 2020 and January 1, 2021. To qualify for the credit, the business must experience either a full or partial suspension of operations during any calendar quarter due to COVID-19, or a significant decline in gross receipts. A significant decline begins when gross receipts for a 2020 calendar year quarter are less than 50% of gross receipts for the same quarter in 2019. For more on the ERTC, click here.
Updates and Reminders
September 15th Deadline – It’s hard to believe, but the extended due date for calendar year end partnerships and S-corporations is right around the corner. Also, don’t forget that many third quarter estimated payments are also due on September 15th. Please don’t hesitate to reach out to us with any questions.
Where’s my Economic Impact Payment? – Still waiting on your Economic Impact Payment? You can click here to check the status and payment type.
Where’s my Refund? – For those of you still waiting on your refund, don’t forget that you can check the status here. With refunds being delayed, many taxpayers are receiving their refunds plus interest!