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COVID

Dear KSDT Clients, Friends and Colleagues;

First and foremost, we hope that you and your family are safe and healthy!  It goes without saying that we are in unprecedented times. Here at KSDT CPA, we are doing our part to “Flatten the Curve” and reduce the spread of COVID-19 (coronavirus). Over the years, our firm has invested heavily in technology enabling us to continue to serve our clients uninterruptedly and at full capacity, while putting our people first.

Changes and updates are happening at record pace and the environment is a fluid process.   We are processing the information as it becomes available and

would like to help your business understand all of the changes and listed them below. KSDT is here to stand with you as we get through this.

Please do not hesitate to reach out for guidance.  Our thoughts and prayers for everyone’s health and safety

-Jeffrey Taraboulos, CPA, CFF, CFE, PFS

Managing Partner, KSDT CPA

 

For Small Businesses (Source:  US Chamber of Congress)

Everything You Need to Know About Coronavirus Federal Small Business Stimulus Aid Programs

A breakdown of all the federal programs and aid for small business coronavirus assistance.

Three separate packages approved by Congress and signed by President Trump over the past weeks combined offer a variety of assistance to businesses. Here’s a breakdown of what’s in those packages and how your business can take advantage of these relief efforts. We will continue to update this story as we obtain more information.

Coronavirus Preparedness and Response Supplemental Appropriations Act

What is it?

Signed into law on March 6, The Coronavirus Preparedness and Response Supplemental Appropriations Act provides $8.3 billion in emergency funding for federal agencies to respond to the coronavirus outbreak, enabling the U.S. Small Business Administration to offer $7 billion in disaster assistance loans to small businesses impacted by COVID-19.

What does it mean for small business?

  • The SBA is offering designated states and territories low-interest federal disaster loans to small businesses suffering substantial economic harm as a result of the coronavirus.
  • These loans may be used by small businesses to pay fixed debts, payroll, accounts payable and additional bills that can’t be paid because of COVID-19’s impact. The interest rate is 3.75% for small businesses without other available means of credit. The interest rate for non-profits is 2.75%. Businesses with credit available elsewhere are not eligible.
  • The SBA loans come with long-term repayments, up to a maximum of 30 years, in an effort to keep payments affordable. Loan terms are determined on a case-by-case basis, according to individual borrower’s ability to repay.
  • The SBA has amended its disaster loan criteria to help borrowers still paying back SBA loans from previous disasters. By making this change, deferments through December 31, 2020, will be automatic. Hence, borrowers of home and business disaster loans do not have to contact SBA to request deferment.

Where can I learn more?

[expand title=”Families First Coronavirus Response Act”]

What is it?

Signed into law on March 18, the Families First Coronavirus Response Act (FFCRA or Act) contains eight divisions designed to provide assistance to covered employees and households with eligible children affected by COVID-19. Key components of the Act include:

  • Mandatory emergency paid sick leave for covered employees who, as a result of COVID-19, are quarantined, symptomatic or caring for a symptomatic individual, or caring for a child whose school has been closed.
  • An expansion of unemployment benefits.
  • Modifications to the USDA nutrition and food assistance programs.
  • New requirements for coronavirus diagnostic testing.
  • A temporary increase in the Medicaid federal medical assistance percentage (FMAP). [/expand]

What does it mean for small business?

The FFCRA affects small businesses in two key ways:

  • Paid sick and family leave. The law requires all private businesses with fewer than 500 employees to provide emergency paid sick or family leave for employees affected by the coronavirus outbreak.
  • Employer tax credits.The law provides employers with fewer than 500 employees with refundable payroll tax credits to cover the cost of providing the paid sick leave and the paid FMLA leave to their employees. Specifically, the law states that:
    • Employers will receive 100% tax credit against their payroll tax liability up to the capped amount of benefits they must pay.
    • Health insurance costs are also included in the credit.
    • Self-employed individuals receive an equivalent credit.
    • If an employer is owed more than the capped amount and a refund is owed, the IRS will send the refund as quickly as possible.
    • Reimbursement will be quick and easy to obtain.

Where can I learn more?

Coronavirus Aid, Relief, and Economic Security Act (CARES Act)

What is it?

The CARES Act, which is expected to be passed by both houses of Congress and signed by the President in the near future, has a number of components aimed at helping small businesses survive and recover from losses suffered during the coronavirus outbreak. Key components of the CARES Act include a loan program from the SBA, changes to unemployment benefits and changes to business tax filing requirements.

What does it mean for small business?

Anticipated key components of the CARES Act include:

  • Small Business Paycheck Protection Program: A new lending program that allows businesses to borrow enough to cover monthly payroll costs for businesses for up to 2.5 months. If used for payroll, mortgage interest or other qualified expenses, these loans will be forgiven as long as the employer continues to employ its workers or rehires them when they reopen for business. You can learn more about the Paycheck Protection Program here.
  • Business tax provisions: Employers can defer payment of the employer share payroll taxes.
  • Payments for individuals: It is anticipated those who make less than $75,000 a year will receive direct payments of $1,200 per individual ($2,400 joint return) plus $500 per child. This will phase out for incomes above $75,000 ($150,000 joint filings).
  • Unemployment assistance: If your business is closed because of coronavirus and your employees cannot work from home, or your employees are unable to work due to illness or the need to take care of someone who is ill with the virus, they can collect unemployment.

Where can I learn more?

  • Small Business Administration’s COVID-19 page
  • More info on IRS tax changes can be found here.
  • More information on filing for unemployment assistance can be found at the S. Department of Labor, though you or your employees will need to file through your state’s unemployment program

Employer Resources (Source:  ADP)


ADP Employer’s Preparedness Toolkit: Our way of consolidating relevant information and resources all in one place. Here you will find FAQ’s, checklists, webcasts, and articles to help your organization.

ADP Employment Tax Guide: This provides information about changes each state’s tax agencies are making in response to the virus.

Eye on Washington: ADP’s compliance newsletter that helps to summarizes legislative changes. I have attached the most recent article on the CARES Act for you in case you are not already subscribed to this resource.

Compliance HR COVID-19 Resource Center: An in-depth and automated list of FAQ’s put together by ADP’s partner Compliance HR as answered by Littler, the world’s largest labor and unemployment law firm. It allows you to access specific info you are looking for in a more organized way. Please continue to check this periodically, as it is continuously being updated.

ADP Spotlight Webinars: Below are the links to the recording of our past 2 webinars held on 03/13 & 03/20 as well the links to register for the upcoming webinars. We will be hosting webinars every week moving forward.

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