Small Business Emergency Bridge Loan Program
(an friend in Florida sent this to me)
Florida’s governor has activated the Small Business Emergency Bridge Loan Program. Loans are currently available statewide for businesses that have suffered economic damage due to the COVID-19 outbreak. These short-term, interest-free, working capital loans are intended to “bridge the gap” between the time a major catastrophe hits and when a business has secured longer term recovery resources, such as sufficient profits from a revived business, receipt of payments on insurance claims, or federal disaster assistance.
If your business needs working capital this program just might help you ride out these difficult times. If you need assistance filling out the necessary paperwork or getting information together for your application we are here to help you.
For more information see https://floridadisasterloan.org/eligibility-and-loan-process/
US Treasury Delays Payment Date for Income Tax
The US Department of Treasury and the IRS have now verified that individuals who owe income taxes, due on 4.15.2020, can delay payment of up to $1,000,000 until July 15th 2020. Such a delay will NOT subject the payment to penalties and/or interest. Qualifying small businesses may delay the payment of up to $10,000,000 of income taxes due on April 15 to July 15 without being subject to interest or penalties. Remember this ability to delay applies only to federal income taxes and not to payroll, excise or other taxes.
For more information see
https://home.treasury.gov/news/press-releases/sm948
CORONAVIRUS RELIEF PACKAGE
Congress recently passed and the president has signed a Coronavirus Relief Package. Known as the Families First Coronavirus Response Act, the law provides:
a) paid leave benefits to employees
b) tax credits for employers and self-employed taxpayers
c) FICA tax relief for employers
The law requires small employers, those with less than 500 employees, to provide paid family medical leave during the period between the date the act became law and December 31, 2020, for a “qualifying need related to a public health emergency”. The first 10 days of this leave shall be unpaid, except that the employee may choose to accrued vacation or sick time, for the purpose of receiving payment during this 10-day period. Consecutive to this 10-day period the employer shall provide paid leave. The bill is complex and subject to numerous provisions that may affect how these provisions are applied, but the important thing to note is that employers, who would have otherwise been exempt from providing paid leave, are not exempt under this new law when it comes to the COVID-19 related emergency. Other important provisions may also apply.
The bill runs 90 pages so there is a lot more to talk about and review. If you have employees that are unable to work due to the health of a family member or child, or because their child or children are out of school and child care is unavailable, it’s important to discuss this with a qualified tax or payroll professional.
The law contains a refundable tax credit for employers equal to 100% of paid for family or medical leave wages by the small business each quarter. The credit can be used against the employer’s social security taxes and applies to amounts paid to employees who are sick or quarantined. A smaller credit applies to amounts paid to employees caring for a family member or for a child whose school or place of care has been closed. Individuals who are self-employed also qualify for refundable credits. Limits apply.
Here at RMS Accounting we are pay close attention to this and all new tax and payroll regulations that could affect the business of our clients, if you need help sorting through this, we are only a phone call away.
Want to take a look at the new law it can be found at this link below.
READ THE FAMILY FIRST CORONAVIRUS RESPONSE ACT
https://www.congress.gov/bill/116th-congress/house-bill/6201/text