The COVID-19 outbreak a direct and lasting impact.
What does the COVID-19 pandemic mean for your business, and for you? While it’s difficult to predict the full extent of the impact of COVID-19, Maner Costerisan is closely monitoring this rapidly evolving situation, offering guidance to help you through this time of uncertainty.
On Monday, February 22, President Biden announced a series of updates to the Paycheck Protection Program, intended to help minority-owned and very small businesses that may have missed out on prior PPP funding. Read more about the changes here.
The CARES Act, passed last year, created an Employee Retention Tax Credit (ERC) to encourage employers to keep employees on the payroll, even if they are not working due to the effects of the pandemic. The recently-enacted Consolidated Appropriations Act, 2021, (CAA) provided a critical extension for businesses to qualify for the credit, which was scheduled to expire on December 31, 2020.
In addition, the legislation outlines new enhancements to the credit, including increasing eligibility requirements for companies to receive it retroactively and lowering the bar on reduction in gross receipts from 50% (through 12/31/20) to 20% (1/1/21-6/30/21) compared to the same quarter in 2019.
It also provided new provisions that allow businesses that received PPP funding previously to now qualify for the credit, up to $5,000 in 2020 and $14,000 in 2021 per employee – a tremendous potential for tax savings for struggling businesses.
Answer a few quick questions to determine if you qualify and how best to approach your situation.
This is a high-level guide to help you understand top changes and impact points related to the PPP and ERC.
On Friday, January 22, Maner Costerisan hosted an expert panel to answer many of your questions and discuss how the Consolidated Appropriations Act impacts you and your business. This virtual discussion will feature a brief overview followed by an open dialog with participants. View Recording.
The Michigan Restaurant & Lodging Association Educational Foundation announced it will administer the application process for the Employee Assistance Grants.
Employees impacted by the Michigan Department of Health and Human Services Gathering and Face Mask Order that took effect on November 18, 2020 are eligible to apply for one-time grants up to $1,650 during the application period of January 15 through January 25. The State of Michigan Department of Treasury will process Employee Assistance Grants to approved recipients from the $45 million fund authorized under PA 257 for employees in the hospitality, entertainment, recreation, accommodation and food services sectors.
All eligible employees in Michigan should apply for Employee Assistance Grants online at mrlaef.org/money beginning at 9 a.m. on Jan. 15 with the deadline for all application submissions by 5 p.m. on Jan. 25.
The Small Business Administration has reopened the Paycheck Protection Program
Beginning January 13, 2021 applications for Paycheck Protection Program (PPP) loans can be submitted to the U.S. Small Business Administration. The PPP eligibility for First Time Borrowers has expanded for some organization types and maximum funding was increased for some as well (NAICS 72).
The Second Draw PPP loan is for eligible borrowers that previously received a PPP loan, generally have 300 employees or less, and have suffered a 25% reduction in gross receipts. Eligible businesses and organizations can apply for a Second Draw PPP Loan until March 31, 2021 through a participating qualified lending institution. Similar to the initial PPP loan, funding is expected to go quickly.
The Consolidated Appropriations Act, 2021. The emergency coronavirus relief package – the bill’s focal point for many Americans – aims to bolster the economy, provide relief to small businesses, nonprofits, and the unemployed, deliver checks to individuals, and provide funding for COVID-19 testing and the administration of vaccines (among other things). Read full article.
United States Congress & Michigan State Legislature Pass New Stimulus, COVID-19 Relief Bills Aimed to Help Struggling Michiganders & Businesses Read full article.
SBAM administering grants from LEO to help small businesses weather the cold. Click here to find out more.
Payroll Taxes Deferred Webinar
Payroll Deferral Webinar recording, MMA with Dennis Theis. Description: An overview of the President’s “Memorandum on Deferring Payroll Tax Obligations in Light of the Ongoing COVID–19 Disaster.”
IRS issues guidance on President Trump’s executive memorandum, deferring payroll taxes. Beginning September 1 and ending December 31, 2020.
President Trump issued an executive memorandum deferring payroll taxes. Beginning September 1 and ending December 31, 2020, certain federal employee withholding taxes will be deferred. Read full article
The new initiative, open to Michigan companies with fewer than 250 employees, provides up to $10,000 for improvements made to help reduce the spread of COVID-19 during the pandemic. Friday, August 7 is the deadline to apply for the Michigan COVID-19 Safety Grant Program.
On Tuesday, June 16th Small Business Association released two new versions of the PPP Loan Forgiveness application to correspond with changes made after the Flexibility Act was passed.
Nonprofit organizations and higher education institutions have been hard at work trying to help the world navigate the novel coronavirus (COVID-19) pandemic. While trying to maintain focus on their missions, these organizations and institutions face massive uncertainty in the face of COVID-19, including financial turmoil, layoffs, remote work, quarantines, shelter-in-place orders and other measures.
The Paycheck Protection Flexibility Act of 2020 (H.R. 7010), offers a variety of important updates for small business owners.
How is COVID-19 impacting your company? We can help you track and manage cash flow. Maner Costerisan is here to help work through the logistics and understand the ramifications of the decisions made.
Contact Dennis Theis, CPA with any questions or concerns, email@example.com.
The coronavirus has forced employees to work from home and businesses to adapt to a new remote-work business model. Tools like Office 365, cloud based accounting systems, remote desktop solutions for on premise applications, and virtual networks are not “nice to haves” they are now “must haves”. We can help evaluate what is best for you and implement the solution. Contact James Meyer, firstname.lastname@example.org, for assistance.
There are so many considerations when it comes to your team; your office family. We are here to connect you to the right resources to protect your business and staff. We can answer questions your team has on payroll and benefits projections, payroll changes, unemployment and more. Contact Jim McNeeley, email@example.com, for assistance.
On Friday, May 15, the Small Business Association (SBA) released the application and additional clarification on the Paycheck Protection Program (PPP) Loan Forgiveness.
The coronavirus (COVID-19) has forced employees to work from home and businesses to adapt to a new remote-work business model. Although technology has made this process easier, organizations are looking for ways to replicate their in-office culture in a remote environment, including moving meetings – like your critical board meetings – to video conference calls. That’s where we can help. Learn more about the pros and cons of two of the top remote work platforms – Zoom and Microsoft Teams.
If your company is supporting remote workers, you must decide how to strategically respond to a host of challenges including communication, task assignment, and performance measurement (to name a few). In this article you will find a few important things to take into consideration to help your team (and your business) stay as safe and productive as possible.
Summary of tax filing due dates. Please note, changes are happening daily and this list is subject to change.
Michigan small businesses receive additional time to file their monthly and quarterly sales, use, and withholding tax return. The April 20 deadline has been extended to May 20th.
Paycheck Protection Program is meant to help small businesses (fewer than 500 employees) impacted by the pandemic and economic downturn to make payroll and cover other expenses from February 15 to June 30. Read full article.
Sarah Jennings, CPA, Dennis Theis, CPA, and Matt Latham, CPA discuss the CARES Act.
Stimulus Bill and Nonprofits Webinar Recording
What does recent legislation mean for your organization and how can you use these and other elements of the new legislation to further your mission?
The CARES Act that was recently passed had numerous provisions to stimulate the economy. Among the provisions passed, there are a few related specifically to retirement plans for qualifying plan participants.
The CARES Act will hit every sector in the country, especially state and local governments. Specifically, offering relief with COVID-19 Relief Fund, Education Stabilization Fund, Local Government Grant Programs, and Transportation and Infrastructure Programs.
On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security (CARES) Act, which provides tax relief and tax incentives for individuals and businesses alike.
Paid Sick Leave and Expanded Family and Medical Leave Poster
The Families First Coronavirus Response Act (FFCRA or Act) requires certain employers to provide their employees with paid sick leave and expanded family and medical leave for specified reasons related to COVID-19. These provisions will apply from April 1, 2020 through December 31, 2020. All employers are required to post this information.
The Families First Coronavirus Response Act (H.R. 6201), became law on March 18, 2020. The Act guarantees free testing for the novel coronavirus (COVID-19), establishes emergency paid sick leave, expands family and medical leave, enhances unemployment insurance, expands food security initiatives, and increases federal Medicaid funding.
Governors Executive Order 2020-21, known as “Stay Home, Stay Safe,” our offices in Lansing and Grand Rapids are temporarily closed. Maner Costerisan has moved to a virtual office environment. We want to assure you that work will not be disrupted as we move to a virtual environment.
The Department of Labor and Economic Opportunity has provided guidance to Michigan employers on potential layoffs related to COVID-19. The request for registration and seeking work waiver form online needs to be completed by the employer before employees apply for unemployment if they are temporarily laid off from work.
On March 18, 2020, a number of states had issued extensions of time to file and/or pay business income tax and individual income tax and/or relief from late filing/payment penalties. Notice 2020-17 is available here. Other states have adopted the federal relief, while a number of others are expected to issue guidance.
For an Affected Taxpayer (any taxpayer with a Federal income tax payment due April 15, 2020), the due date for making Federal income tax payments is postponed from April 15, 2020 to July 15, 2020.