To date, we have helped 58 business owners, and families navigate through the CARES Act.
And yes – it’s LAW.
But we are still WEEKS away from this law becoming implemented fully. We must be proactive through this entire process!
We’ll keep you updated daily via social media and will send out emails as needed.
In the meantime, we wanted to give you a quick overview of the bill that was passed Friday evening to show you how these changes will help your business during these difficult times.
Payroll Protection Program – SBA 7(a) Loan
If You Have Paid…
- Payroll Taxes
- Or independent contractors
We Can Obtain a Forgivable Loan
- If done correctly, you do not have to repay
- Must track the disbursement of funds
- Apply funds to forgivable identified expenses
- Once the loan is obtained, we need proper documentation of expenses paid towards payroll in the subsequent 8 weeks, which will be forgiven in full. You can also have your costs forgiven for rehiring employees terminated for COVID-19.
- Additionally, amounts spent on mortgage interest, lease payments, and utilities that were in place before February 15, 2020, will be forgiven.
Economic Injury Disaster Loans – SBA 7(b) Loan
- You can obtain this loan to use for other expenses not related to payroll, rent, mortgage interest, and utilities. These loans can be used for other business operations with limitations.
Emergency Grant – Get $10K
- Emergency grant to allow businesses who have applied for a disaster 7(b) SBA loan, to request a $10,000 advance.
- If you are subsequently denied, you do not have to repay the advance loan.
Withdraw Retirement Tax-Free and Requirements
- This waives the 10% early withdrawal penalty for distributions up to $100,000 from qualified retirement accounts.
- Repay within 3 years to avoid income taxes on the distribution
- Suspension of Required Minimum Distributions (RMD) in 2020
- The due date for IRA contributions extended until 7/15/2020 for the 2019 tax year.
Defer Your Payroll Taxes For 2 Years
- You can defer payment of all payroll taxes over 2 years. 2020 payroll taxes paid 50% by the end of 2021 and 50% by the end of 2022.
Get Stimulus Check of $2,400 (Married), $1,200 (Individual)
- If you make less than $150,000 Married, $112,500 HOH, $75,000 Single in 2019, file your return immediately.
- If you make less than that in 2018 and haven’t filed 2019, you will get the rebate sent directly to your account.
- Additional $500 for each dependent under the age of 17.
Carryback Business Net Operating Losses for Cash Refunds
- Business can carryback losses arising in taxable years beginning 12/31/2017 and before 01/01/2021.
- Receive a cash refund by carrying back the losses for 5 years instead of requiring to carryforward.
- The law eliminated many of the changes related to Net Operating Losses with the Tax Cuts and Jobs Act of 2017.
Refundable Payroll Tax Credit For 50% Of Wages Paid
- You can get a Payroll Tax Credit 50% of wages paid to employees if your operations were partially or fully suspended or the gross sales declined by more than 50% when compared to the same quarter in the prior year. Credit is provided up to $10,000 per employee.
There is a lot of information, and we are navigating through the law. If you have any questions, please schedule a time for us to talk by clicking here.
It will be essential to act fast, so please reach out to us with any questions.
*** Disclaimer: The bill has just passed, and we are learning how this bill will be implemented and the interpretations for each component. For the most up to date information and FREE Analysis based on your situation, set up a time here.