We are doing our best to keep you updated on the important tax and economic updates as they relate to you. Below please find the most recent updates and insights from our CAPATA partners for you and your business.
Employee Retention Credit
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was an economic stimulus bill that was signed into law on March 27, 2020. One of the provisions of the CARES Act was the Employee Retention Credit, which provides payroll tax credits available for employers, including tax exempt organizations who retained employees during the COVID-19 pandemic.
Text Phishing Scam
The Security Summit (a partnership of the IRS, private sector, and state tax agencies) has released a warning to taxpayers about a new COVID-related scam that deceives people into providing their bank information. The scam is generated by a text message claiming the person has received the $1,200 Economic Impact Payment (EIP).
PPP Loan Forgiveness Application for Loans $50,00 and Less
The Department of Treasury introduced a new, easier loan forgiveness application on October 8, 2020 for companies that have received PPP loans of $50,000 or less. No calculations for loan forgiveness are needed as borrowers won’t be subject to FTE or wage reductions.
Deferring Employee Payroll Taxes
The U.S. Treasury and IRS have released the initial guidance, Notice 2020-25, to put into operation the President’s Executive Order, which allows employers to defer employee payroll taxes beginning on September 1, 2020. It’s important to note that this relief is intended for the employer, not the employee. The employer is the “affected taxpayer” in this Executive Order.
PPP Interim Final Rule
On Monday, August 24, 2020, the Small Business Administration (SBA) and U.S. Treasury released an interim final rule that gave further guidance on the Payroll Protection Program (PPP) loan forgiveness for owner-employee compensation and eligible nonpayroll costs.
Orange County Grant Small Business Relief Program
Would you like a grant of up to $10,000 from Orange County to help your small business? Read this today—help may be on the way! In general, the grants require that your business was affected by the COVID-19 Pandemic.
Senate Passes PPP Flexibility Act
As expected, the Senate has passed the House of Representatives’ version of the Paycheck Protection Program (PPP) Flexibility Act on June 3, 2020. This legislation will remove many restrictions from the original PPP terms while still allowing businesses to maximizeforgiveness.
PPP Loan Forgiveness - Possible Loosened Restrictions
The House of Representatives has passed the Paycheck Protection Program Flexibility Act to the Senate on May 28, 2020 with a 417-1 vote. The bill will make qualifying for PPP loan forgiveness easier for borrowers by loosening some of the restrictions originally put in place as part of the CARES Act on March 27, 2020.
Orange County COVID-19 Layoff Aversion Support Fund Program
In breaking news, the California Employment Development (EDD) funded $700,000 to Orange County’s Workforce Development Board (OCWDB) in partnership with the Orange County Community Services- Community Investment Division.
PPP Loan Forgiveness (Live Webinar)
Come join our webinar to get more information on the PPP loans. We will show you what eligible expenses are, cover the eight-week loan period, give you the equation to calculate your forgiveness, and walk you through the forgiveness application process. We want to give you the tools to succeed during this time.
Extended Employee Benefit Plan Deadlines
When the IRS issued Notice 2020-23, they provided needed guidance for business owners as a result of the extended July 15, 2020 deadline to file and pay taxes. This Notice is specifically regarding the “specified actions” and filing obligations that are normally due on or after April 1, 2020, pushing these back to the July 15, 2020 deadline.
PPP Loans - Best Practice Guidelines
If you’ve been approved for the Paycheck Protection Program loan, you may have been wondering what are the best practices for receiving and using the funds and documenting the expenses the funds are used on. We have compiled some guidelines to help you as much as possible and we are ready to help if you need our assistance.
Paycheck Protection Program
If you’re like many business owners in the US today, you’re trying to get the most information possible about how to keep your business running. The CARES Act created new relief loans for small businesses called Paycheck Protection Program (PPP) loans. They are intended to encourage employers to keep their employees on their payroll, so there are huge benefits to these loans.
Employee Retention Credit
The Treasury Department and the Internal Revenue Service today launched the Employee Retention Credit, designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19.
Scam and Phishing Attempts During COVID-19
The IRS has released a statement urging taxpayers to remain extra vigilant for scams and phishing attempts during these uncertain times. With taxpayers receiving economic impact payments, it is expected that there will be a criminal effort to intercept these payments.
We're Here to Help
Here is what we can do for you during these troubled times. We don’t want this to appear opportunistic and we are happy to just be a sounding board if that is all you need, free of charge. We want you to have all the resources available so you can ride out the storm. We are in this together.
Business Survival in the COVID-19 Era
If you are like most of us in business, in a few short weeks you have gone from wondering how to make your business grow and be more profitable to planning for its survival.COVID-19 and the rules about social distancing and isolation from others as much as possible have changed your interactions with customers.
Congress Enact CARES Act Providing COVID-19 Relief
March 27, 2020 saw the biggest economic relief act put into place in the United States’ history. The $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act provides many individuals and businesses with tax and economic relief. Perhaps the most significant piece of the CARES Act is the availability.
Coronavirus Stimulus Payments
The government has established a new relief stimulus package that is set to help U.S. citizens that have been affected by COVID-19. The White House is aiming to begin sending out checks within the next few weeks, but how much you are given is going to be determined by your most recently filed tax return or information from the Social Security Administration.
People First Initiative Guidelines
The IRS disclosed their guidelines to the People First Initiative. As a COVID-19 effort, several important adjustments have been made and compliance programs have been suspended. As of now, the Initiative will be in effect fromApril 1 to July 15.
Tax Filing Extention FAQs
In FAQs just posted on their website, the IRS answered many of the questions regarding theJuly 15 filing and payment extension announced in IRS Notice 2020-18. Note the following highlights.
Tax Filing Deadline Officially Extended
This morning the Treasury Secretary Steven Mnuchin announced that the President Trump has approved pushing the April 15th tax deadline to July 15th. All tax filing and payments may now be completed by July 15th without penalty or interest.
Families First Coronavirus Response Act
The Federal government continues to prod the economy by passing the "Families First Coronavirus Response Act" (the "Act"). Parts of the Act provide for emergency family and medical leave benefits, emergency paid sick leave benefits, and employer and self-employed tax credits and exclusion from employer FICA tax concerning the payment of those benefits.
COVID - 19
At CAPATA, our mission statement is that we help you to Rise to Build a Better Future. To do that in the current environment, we’re taking every precaution possible to protect the health and safety of our team and their families, given the ongoing COVID-19 Virus situation.
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