The federal government has devoted unprecedented resources to offset the economic losses caused by COVID-19. By now, most people have heard of the Coronavirus Aids, Relief and Economic Security (CARES) Act and the loans that are available under its popular Paycheck Protection Program (PPP). If you are not familiar with this program, here is a …
I have yet to meet a client who was excited by the thought of an IRS audit, let alone audit trends. In reality the thought of an audit can almost make a person break out in a cold sweat, have an increased heart rate and mimic the signs of a panic attack. Well maybe it’s …
To counteract the effects COVID-19 is having on the economy and businesses, the Internal Revenue Service recently announced the Employee Retention Credit. This refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer impacted by COVID-19. Wages between March 12, 2020 and December 31, 2020 are eligible for the …
The president signed into law, on Friday, March 27, 2020, the “Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to address the unprecedented public health and economic crisis related to COVID-19. The law provides relief for individuals and businesses in various ways including tax relief, increased loan funding to provide cash flow to businesses, …
We’ve been talking a lot about U.S. Small Business Administration (SBA) low-interest federal disaster loans lately. If your business has been adversely affected by COVID-19, an SBA disaster loan could be a viable solution. $50 billion in funding has been set aside for the program which offers up to $2 million in assistance for each …
Under the Families First Coronavirus Response Act (Act) (H.R. 6201), employees (and the self-employed) can claim refundable federal tax credits to recover 100% of any COVID-19 related sick leave payments but confusion continues on how and when exactly employers recoup that loss. The IRS says employers can subtract the cost of the sick time (plus …
On March 30, 2020, Governor Doug Ducey issued the state of Arizona a Stay home, Stay healthy, Stay connected order. He’d previously issued clearance on who is considered essential personnel during the COVID-19 crisis. How payroll tax credits work for COVID-19 sick leave Essential personnel includes those who work for: Health care and public health …
Now that COVID-19 has been declared a national emergency, Internal Revenue Code Section 139 allows employers to make tax-free payments in assistance or reimbursements to employees as “qualified disaster payments.” This is how it works. Qualified disaster payments are payments that wouldn’t normally be reimbursed by insurance to help an employee with expenses related to …
In response to the COVID-19 pandemic, congress passed The Families First Coronavirus Response Act (H.R. 6201), a federal aid package which became law on March 18, 2020. The act is an emergency measure set to expire in late 2020. In a bid to help mitigate the pain individuals and companies are feeling during the pandemic, …
The COVID-19 pandemic is having an unprecedented impact on the global economy and businesses worldwide. Companies across the globe are quickly pivoting to adapt to new ways of doing business in order to keep their business going while people lockdown. One consideration that should be top of mind for all companies is how to protect …