We understand you have been impacted by the novel Coronavirus (COVID-19) and we are here to help. Information is changing daily and clear guidance won’t be available until late April or possibly later this summer, nevertheless, the time to act is NOW.
Economic Impact Payment (stimulus checks)
- Eligibility: AGI $75,000 Individuals/$150,000 Married Couples with phaseouts up to $99,000/$198,000 respectively
- Amount: $1,200 Individuals/$2,400 Married Couples and $500 per qualifying child subject to income limitations, noted above
- Method of payment: For those of you who utilized direct deposit for 2018 or 2019 tax refunds, expect direct deposit; all others will receive a check or utilize a forthcoming tool to enter your banking information
- Those who have not filed a 2018 or 2019 tax return: Don’t worry, the IRS either has your information based on Social Security records or will develop a tool to request your economic impact payment
- What you should do: Nothing if, you have filed a 2018 or 2019 tax return
- Calculator: click the link to see how much you can expect to receive
Unemployment Benefits (Michigan clients only)
- Impacted employees have 28 days from the date of their work stoppage to apply
- Benefits have been extended to 39 weeks
- 1099 workers, gig workers and self-employees workers are now eligible
- If you are eligible, apply NOW
- Paid sick leave refundable credit
- Paid family leave refundable credit
- Employee Retention Credit
- To qualify:
- The employer’s business is fully or partially suspended by government order due to COVID-19 during the calendar quarter; or
- 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, the employer no longer qualifies after the end of that quarter.
- 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 also include a portion of the cost of employer-provided health care.
- To qualify:
Payroll Protection Program (contact your current lender immediately)
- You have to apply through an approved SBA 7(a) lender
- Eligible recipients may qualify for a loan up to $10 million, determined by 8 weeks of prior average payroll, plus an additional 25% of that amount.
- Loan payments will be deferred for six months.
- If you maintain your workforce, SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses following loan origination.
- Provides funds for 8 weeks of payroll costs, benefits, mortgages, rent and utilities
- Fully forgiven if used for appropriate expenses
- Keep in mind you will have to keep applicable documentation to have this loan forgiven
- Apply online directly with the Small Business Administration
- Small business owners in all of the U.S. and territories are currently eligible to apply for a low-interest loan due to COVID-19
- Option for a $10,000 loan advance, with the possibility of the loan turning into a grant
Even as we help clients with the items discussed above, we continue to work diligently on preparing tax returns. There has been an influx of questions and phone calls due to uncertainty and economic programs available, but we remain dedicated in assisting all clients with their needs, even while working remotely to protect our staff, families and the health of our clients. We are still and will continue to work around the clock to assist everyone in need – we will get through this together and have no intent on having the current crisis impact our quality and focus on professional service.
Please feel free to contact us at (248) 934-0550 if you would like to learn more about the services we offer for our clients. We are here to help.