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Cares Act Tax Tips For Businesses

Posted by Admin Posted on Apr 22 2020

We would like you to be aware that the government has recently passed legislation that may help your business.

The government is offering new ‘Paycheck Protection’ loans that business may qualify for.  They are obtained at SBA-qualified banks.  Loans can be obtained to help pay payroll expenses, rent and utilities and if certain qualifications are met, up to the entire loan can be forgiven.  Banks should start accepting applications for this type of loan after the government funds it again (hopefully this week).

You can apply for an Economic Impact Disaster Loan.  You may be able to receive a $10,000 advance on the loan (which would then reduce forgiveness of the paycheck protection loan above, if also applied for).  The loan should be available again once the government funds it again.  

Unemployment has been ramped up with a temporary $600 a week being added to payments of those who apply

Other payroll credits are available.  Qualifying businesses could get a credit equal to 50% of wages, up to $10,000 of wages per employee.  The maximum credit is $5,000 per employee.

Credits are available for paying employees who must stay home with kids due to school canceling or daycare limitations. 

Credits are available for paying employees who are sick with the coronavirus or helping someone who is.

The employer portion of FICA tax may be deferred.

Please let us know if you have any questions about how these may apply to your situation.  This is a brief summary of the changes.