COVID-19 Updates

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Cash Flow Programs

Programs for small business

SBA Assistance, CARES Act

Economic Injury Disaster Loan (EIDL)

What is the EIDL?

  • Economic Injury Disaster Loans (EIDLs) are available to small businesses to cover economic injury resulting from the COVID-19 disaster. 
  • EIDLs are available in a maximum amount of $2 million, carry an interest rate of 3.75 percent (2.75% for non-profits), and have a maximum term of 30 years.
  • EIDLs are available for “affected businesses” to help them pay bills and other expenses during the period of time when their business is disrupted due to the pandemic. These loans may be used for fixed debts, payroll, accounts payable, and other bills that cannot be paid. The loans cannot, however, be used to refinance long-term debts.
  • The applicant may request an expedited disbursement that is to be paid within three days of the request. The advance may not exceed $10,000 and must be used for authorized costs but is otherwise not repayable if the EIDL Loan is not approved.
    • Click here for details

 

Does My Business Qualify?

How Do I Apply?

Additional Information:

Paycheck Protection Program (PPP)

What is the PPP?

The Paycheck Protection Program (PPP) provides small businesses with funds to pay up to 8 weeks of payroll costs, including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.

  • Fully Forgiven Funds

Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities(due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

  • Must Keep Employees on the Payroll—or Rehire Quickly

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

Does My Business Qualify?

  • Small businesses with 500 or fewer employees—including nonprofits, veteran’s organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors—are eligible. Businesses with more than 500 employees are eligible in certain industries. The maximum loan is 2.5 x Average total monthly payroll costs incurred during the year prior to the loan date. For businesses not operational in 2019, 2.5 x Average total monthly payroll costs incurred for January and February 2020.
  • Click here for complete details.

How Do I Apply?

  • You can apply through any existing SBA 7(a) lender or any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program.
  • You should consult with your local lender as to whether it is participating. All loans will have the same terms regardless of the lender or borrower. A list of participating lenders, as well as additional information and full terms, can be found here. The Paycheck Protection Program is implemented by the Small Business Administration with support from the Department of the Treasury.
  • Lenders should visit here for more information.
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Employee Programs

Programs for employees and their families

Families First Coronavirus Response Act

Employee Resources

Economic Stimulus Payments

  • The Federal Government has approved the distribution of Economic Impact Payment (stimulus) Checks. Check out this resource to make sure that you get yours!

Unemployment Claims

  • Employees can get immediate assistance from the Alabama Department of Labor (ALDOL).
  • Employees may file their Unemployment Claims here.

Tax Filing and Payment Deadlines

  • The US Treasury Department moved Tax filing day from April 15th to July 15th. Treasury Secretary Steven Mnuchin states, “All
    taxpayers and businesses will have this additional time to file and make payments without interest or penalties."
  • Alabama Department of Revenue is following suit and has extended their tax filing deadline to July 15th. Also, this extension applies to the due date for payments, and waiver of interest, for individual income tax (including payments on self-employment income), corporate income tax, business privilege tax, and 2020 estimated tax.
  • No April 15th tax deadline extensions need be filed, these extensions to July 15th are automatic.
  • Accounting Complete encourages all taxpayers to file income tax returns as originally planned by April 15th. Filing by this date would allow for refunds to be processed quicker during this time of need or to budget for balances owed on the July 15th payment extension deadline.

Emergency Paid Sick Leave Act

Emergency Paid Sick Leave Act

    • Applicable to Employers with 1-499 employees:

      • Any employee who works for an employer is eligible (different from EFMLA)

      • If the EMPLOYEE is sick, the employee is entitled to:

        • Full-time Employees –80 hours of paid sick leave

        • Part-time Employees –Pay is based on the average number of hours the employee worked for the six months before taking sick leave, or, if the employee has worked less than six months, the average number of hours per week the employee would typically be scheduled to work

    • The Qualifying Reasons

      • Must provide paid sick time “to the extent the employee is unable to work or telework due to a need
        for leave because”:

        • The employee is subject to a federal, state or local quarantine or isolation order related to
          COVID-19

        • The employee has been advised by a health care provider to self-quarantine due to
          concerns pertaining to COVID-19

        • The employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis

        • The employee is caring for an individual who is subject to an order or self-quarantine

        • The employee is caring for a son or daughter if their school or child-care is
          closed/unavailable

        • The employee is experiencing “any other substantially similar condition” specified by HHS

    • Employees will be compensated at:

      • The HIGHER of their regular rate, federal minimum wage or local minimum wage for reasons 1, 2,
        or 3.

      • The HIGHER of their regular rate, federal minimum wage or local minimum wage at 2/3 the
        employee’s regular rate or 2/3 applicable minimum wage for qualifying reasons 4, 5 or 6

      • Capped at the following levels:

        • $511 per day and $5,110 in aggregate per person for qualifying reasons 1, 2 or 3

        • $200 per day and $2,000 in aggregate per person for qualifying reasons 4, 5 or 6

Emergency Family and Medical Leave Act

Emergency Family and Medical Leave Act

      • This part of the Act applies to employers with 1-499 employees.

      • The Act significantly expands the FMLA, but only temporarily.

      • The Act will apply to any employee who worked for an employer for 30 days before leave and has a qualifying reason (no requirement of 12 months/1250 hours).

      • The Act provides up to 12 weeks of job-protected leave (paid after the first ten days)

    • Qualifying reason

      • The employee is unable to work or telework due to the need for leave to care for a son or daughter under 18 years of age, if the school or place of care has been closed or unavailable due to a public health emergency.

    • How does it work, and what are the benefits?

      • The first ten days of EFMLA may be unpaid

        • An employee may elect to substitute accrued PTO, vacation, or sick leave to cover any portion of the first ten days

        • An employer cannot require an employee to substitute such leave

      • After the first ten days (up to ten weeks):

        • The employee will be compensated at 2/3 of the regular rate

        • Part-time employee pay is based on their average hours for six months prior or their typical scheduled work week

        • Pay capped at $200 per day and $10,000 in aggregate per employee

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Employee Retention Credit

Programs for everyone's benefit

CARES Act

Employee Retention Credit Explained

What is the ERC?

  • The Employee Retention Credit is available for business impacted by COVID-19.
    • The ERC is a fully refundable tax credit for eligible employers.
    • 50% of qualified wages paid to employees, including allocable qualified health plan expenses.
    • Applies to qualified wages paid after March 12, 2020, and before January 1, 2021.
    • The maximum amount of qualified wages, taken into account concerning each employee for all calendar quarters, is $10,000.
    • The tax credit is equal to 50 percent of qualified wages
    • The maximum credit for qualified wages paid to any employee is $5,000.
    • Example: $10,000 qualified wages paid time 50% equals $5,000 refundable credit (per employee).

Does My Business Qualify?

  • The credit is available to all employers regardless of size, including tax-exempt organizations. There are only two exceptions: State and local governments and their instrumentalities and small businesses that take small business loans.
  • Qualifying employers must fall into one of two categories:
    • The employer’s business is fully or partially suspended by government order due to COVID-19 during the calendar quarter.
    • The employer’s gross receipts are below 50% of the comparable quarter in 2019. Once the employer’s gross receipts go above 80% of a comparable quarter in 2019, they no longer qualify after the end of that quarter.
  • These measures are calculated each calendar quarter.

How Is The Credit Calculated?

  • The amount of the credit is 50% of qualifying wages paid up to $10,000 in total. Wages paid after March 12, 2020, and before Jan. 1, 2021, are eligible for the credit. Wages taken into account are not limited to cash payments, but also include a portion of the cost of employer-provided health care.

How Do I Know Which Wages Qualify?

  • Qualifying wages are based on the average number of a business’s employees in 2019.
  • Employers with less than 100 employees: If the employer had 100 or fewer employees on average in 2019, the credit is based on wages paid to all employees, regardless if they worked or not. If the employees worked full time and were paid for full-time work, the employer still receives the credit.
  • Employers with more than 100 employees: If the employer had more than 100 employees on average in 2019, then the credit is allowed only for wages paid to employees who did not work during the calendar quarter.

How Do I Receive My Credit?

  • Employers can be immediately reimbursed for the credit by reducing their required deposits of payroll taxes that have been withheld from employees’ wages by the amount of the credit.
  • Eligible employers will report their total qualified wages and the related health insurance costs for each quarter on their quarterly employment tax returns or Form 941, beginning with the second quarter. If the employer’s employment tax deposits are not sufficient to cover the credit, the employer may receive an advance payment from the IRS by submitting Form 7200, Advance Payment of Employer Credits Due to COVID-19.
  • Eligible employers can also request an advance of the Employee Retention Credit by submitting Form 7200.

At Accounting Complete, we value your loyalty. We have provided this page as a service to you in an effort to alleviate the fears and uncertainties in this unique time in history. We will make every effort to keep the information on this page up to date.

As always, if you require more information, or to see how we can help your business flourish in this time of crisis, click the button below to schedule a consultation