COVID-19

Here to help…

UPDATES:  April 16, 2020

  • Visit IRS.GOV to learn more about the status of your stimulus money.

  • The Paycheck Protection Plan (PPP) and the Economic Impact Disaster Loan (EIDL) programs have been put on hold at this time.  The 349 Billion Dollars has run out.  Go to SBA.GOV for more information.

What is COVID-19

Coronavirus disease 2019 (COVID-19) is a respiratory illness that can spread from person to person. The virus that causes COVID-19 is a novel coronavirus that was first identified during an investigation into an outbreak in Wuhan, China. Source: cdc.gov

IR-2020-61, March 30, 2020

WASHINGTON — The Treasury Department and the Internal Revenue Service today announced that distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action required for most people. However, some taxpayers who typically do not file returns will need to submit a simple tax return to receive the economic impact payment.

Who is eligible for the economic impact payment?

Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible. Social Security recipients and railroad retirees who are otherwise not required to file a tax return are also eligible and will not be required to file a return.

Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples and up to $500 for each qualifying child.

How will the IRS know where to send my payment?

The vast majority of people do not need to take any action. The IRS will calculate and automatically send the economic impact payment to those eligible.

For people who have already filed their 2019 tax returns, the IRS will use this information to calculate the payment amount. For those who have not yet filed their return for 2019, the IRS will use information from their 2018 tax filing to calculate the payment. The economic impact payment will be deposited directly into the same banking account reflected on the return filed.

The IRS does not have my direct deposit information. What can I do?

In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail.

I am not typically required to file a tax return. Can I still receive my payment?

Yes. The IRS will use the information on the Form SSA-1099 or Form RRB-1099 to generate Economic Impact Payments to recipients of benefits reflected in the Form SSA-1099 or Form RRB-1099 who are not required to file a tax return and did not file a return for 2018 or 2019. This includes senior citizens, Social Security recipients and railroad retirees who are not otherwise required to file a tax return.

Since the IRS would not have information regarding any dependents for these people, each person would receive $1,200 per person, without the additional amount for any dependents at this time.

I have a tax filing obligation but have not filed my tax return for 2018 or 2019. Can I still receive an economic impact payment?

Yes. The IRS urges anyone with a tax filing obligation who has not yet filed a tax return for 2018 or 2019 to file as soon as they can to receive an economic impact payment. Taxpayers should include direct deposit banking information on the return.

I need to file a tax return. How long are the economic impact payments available?

For those concerned about visiting a tax professional or local community organization in person to get help with a tax return, these economic impact payments will be available throughout the rest of 2020.

Where can I get more information?

The IRS will post all key information on IRS.gov/coronavirus as soon as it becomes available.

The IRS has a reduced staff in many of its offices but remains committed to helping eligible individuals receive their payments expeditiously. Check for updated information on IRS.gov/coronavirus rather than calling IRS assistors who are helping process 2019 returns.

Update: April 16, 2020 – The PPP and EIDL Loan/Grant programs have been suspended at this time.  The 349 Billion Dollars has run out.  New funding is being considered by congress at this time.

Helpful Links

CARES Act Information and FAQs

Paycheck Protection Program Borrower Application Form

FAQs

PAYCHECK PROTECTION PROGRAM

When Can I Apply?

  • The SBA has announced that starting April 3, 2020, small businesses and sole proprietorships can apply for loans through the Paycheck Protection Program.
  • In line with SBA guidelines, starting April 10, 2020, we will accept applications from independent contractors and self-employed individuals.
  • We encourage you to apply quickly, as funds are limited.

Who’s Eligible?

  • All small businesses — including nonprofits, veterans organizations, tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors — with 500 or fewer employees can apply.
  • Businesses in certain industries can have more than 500 employees if they meet applicable SBA employee-based size standards for those industries.

WHAT CAN I BE DOING NOW TO PREPARE TO APPLY?

We encourage you to gather the following documentation:

  • Average monthly payroll for 2019¹ on an annualized basis for each employee

    o
       Seasonal businesses may elect to provide average monthly payroll from February 15, 2019 to June 30, 2019, on an annualized basis for each employee

    o
       New businesses:  average monthly payroll may be calculated using the time period from January 1, 2020 to February 29, 2020¹excluding costs over $100,000
  • Entity documents including Articles of Incorporation or Organization, Bylaws and Partnership Agreements as applicable will likely be needed as well.

How Much Can I Borrow?

The eligible loan amount determined by combining the following payroll categories into a monthly average and multiplying the result by 2.5X, not to exceed $10 million:

  • Salary, wages, commissions, tips (capped at $100,000 annualized for each employee)
  • Employee benefits including: vacation, parental, family, medical or sick leave; allowance for separation or dismissal; payments for group health care benefits including insurance premiums and payment of any retirement benefit
  • State and local taxes assessed on compensation
  • For sole proprietor or independent contractors: wages, commissions, income, or net earnings from self-employment capped at $100,000 on an annualized basis for each employee

What Can I Use These Loan Proceeds for?

  • Payroll costs — including benefits
  • Interest on mortgage obligations, incurred before February 15, 2020
  • Rent, under lease agreements in force before February 15, 2020
  • Utilities, for which service began before February 15, 2020

Will The Loan Be Forgiven?

Funds are provided in the form of loans that can be fully forgiven when employee and compensation levels are maintained and when loan proceeds are 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).

What Are The Loan Terms?

  • 1.00% fixed rate
  • 2-year term; no prepayment penalties or fees
  • No collateral or personal guarantee required
  • All payments are deferred for 6 months; however, interest will continue to accrue over this period

Families First Act/Paid Leave:

Your employees need to be made aware of the following notice.  It is required to be placed in the form of a bulletin in a common area.

“Effective for wages paid after April 2, 2020 all full time employees qualify for 80 hours of Federal paid sick leave at your full pay rate of up to $511 daily if you are ill, quarantined, been advised by a medical professional to self-quarantine or have symptoms for which you are seeking medical diagnosis, all from Covid-19. You also qualify for FMLA sick leave at up to 2/3 of your normal pay up to $200 daily for 12 weeks (of which 10 are paid) for caring for any individual under quarantine, isolation, etc., or because your child under 18’s school or daycare has been closed.

These rules apply to wages earned through December 31, 2020.”

What this means:

  • 5101 Paid Leave – Employees who cannot work due to illness and/or testing related to COVID-19 can be paid up to 80 hours sick pay.  You can be reimbursed for this expense through 941 Quarterly Tax Credits and/or filling out a reimbursement form.  This form is not yet available, we will put a link to it here when available.
  • 3101 FMLA Extended Leave – Employees who have to take time off to care for someone affected by COVID-19 or a dependent who is forced to stay home from daycare or school due to COVID-19 can take up to 12 weeks off.  10 of the 12 weeks the employee can be paid at 2/3 pay up to $200/day.  Employers can be reimbursed for this through 941 Quarterly Tax Credits and/or filling out a reimbursement form.  This form is not yet available, we will put a link to it here when available.

Disclaimer

The information on this page will be updated as often as we find new information.  We will only utilize information from SBA.gov, IRS.gov, the US Senate Committee on Small Business and Entrepreneurship.  We make no guarantee that you will be funded or receive grants or loans.  Our goal is to help you to be informed and prepared to file for assistance if needed.  We will be here to help you along the way.