The Latest Information to Protect Your Business and Yourself
View Our Latest Webinar Video, Slides, & the PPP Loan Forgiveness Worksheet Below
CARES Act Coronavirus Relief Package
Highlights for Businesses include:
- A Refundable payroll tax credit
- A Delayed payment of 2020 employer-share payroll taxes
- A Net operating loss 5-year carryback
- An expanded interest expense limitation allowance
- Bonus depreciation on non-structural internal improvements
- An acceleration of prior years’ minimum tax credits
Highlights for Individuals include:
- A Rebate Program
- A Required Minimum Distribution Waiver
- Charitable cash contribution deduction changes
- Changes to the taxability of Employer-paid 2020 student loans
- Changes to Early retirement withdrawals
- Retroactive delay of the excess business loss rules
Click Here to review our full summary of the bill’s tax provisions, the small business loan program, and expanded unemployment insurance.
Families First Coronavirus Response Act
Among other provisions, this bill provides paid leave to employees for coronavirus-related hardships.
In general, employees are eligible for sick leave pay equal to either 100% or 2/3 rd of the employee’s regular daily pay (depending on circumstances) for a period of 10 days (2 weeks). Employees are also eligible for family leave pay equal to 2/3 rd of the employee’s regular daily pay for a period of 10 weeks. Employers are entitled to a quarterly, refundable, payroll tax credit equal to the amount of benefits paid to employees. The credit essentially subsidizes the cost of the benefits to the employer. Certain employers based on size measured by number of employees are either automatically exempt from providing certain benefits or may obtain exemption through the labor secretary.
Click Here to review our summary of the paid sick leave and paid family leave benefit provisions of the legislation.
Information Requirements for Small Business Loans
- Your Maximum Loan
- What You’ll Need To Apply For A Loan
- The relevant information to calculate the amount of loan forgiveness
Small Business 500 Employee Requirement
One requirement for an employer to participate in the small business loan program is that an employer does not have more than 500 employees. This brings up the question, for example, of whether employers with multiple locations must combine the employees from each location for the purposes of the 500 employee count, under the “affiliation rules.” Click Here to find out more.
More Information on The Paycheck Protection Program (PPP)
- The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and
- Employee and compensation levels are maintained.
Some Other Noteworthy Tax Provisions:
- The Federal Tax Deadline for the 2019 tax year has been moved from April 15th 2020 to July 15th 2020
- Massachusetts has also extended it’s Tax Deadline for the 2019 tax year to July 15th.
Click Here to read more.
For Our Auto Dealership Clients
The Best Way for Auto Dealerships to Operate Business-wise During The Uncertainty of The Coronavirus is to Plan Ahead.
With the current uncertainties regarding the Coronavirus, it is very important to be prepared for what is to come. Obviously, the focus is on hygiene and everyone’s well-being, however, there also needs to be a focus on business.
Although it is impossible to determine the impact the virus will have on the Automobile Industry; now is the time to prepare for this uncertainty.
The following are some items to consider in your plan:
- To ensure you have the parts to service your customers, consider increasing the purchase of your fast-moving parts inventories
- Consider floor planning available vehicles to increase the overall cash position of the company
- Review the timing of the release of your accounts payable
- Consider overnighting the vehicle lien payoffs in order to accelerate the receipt of titles, so the inventory can be floored
- Make sure customer receivables are followed up within a timely manner
- Submission of all manufacturer rebates and incentives need to be right the first time, set up a process to double-check!
- Consider sending customer receivable statements out earlier than scheduled
- Work to increase the efficiency of processing warranty claims to accelerate the processing time
- Consider the new and used vehicle inventory levels to ensure you have the inventory on your lot as selling season arrives. There is no way of determining whether the delivery of inventory will be delayed by the manufacturers
Navigating Your Dealership Amid The Covid-19 Crisis Webinar
On Monday, March 30, O’Connor & Drew P.C., gave a webinar specifically for auto dealerships entitled “Navigating Your Dealership Amid the COVID-19 Crisis.” The webinar provided an overview of recent tax changes and discussed how these changes will impact dealerships, addressed the implications of the newly passed stimulus package, identified ways in which dealerships can free up cash, as well as discussed other critical business considerations for dealers during this unprecedented and unpredictable time.
Click Here To Watch The Webinar
Click Here To Review the Powerpoint Presentation Slides
For Our Higher Education Clients
There were two recent developments from the Federal government that affects Institutions of Higher Education (IHE).
- The deadline for both financial statements and Single Audit reports has been extended six months (September 30, 2020).
- The Senate approved the $2 trillion stimulus package and the House of Representatives is expected to act on the bill on Friday. As with most legislation, the bill contains broad direction in which the Federal agency will provide specific guidance.
Click Here to Learn more.
A Cyber Security Checklist During COVID-19
Focusing on ways to help your business navigate the uncertain landscape brought upon by COVID-19 is not easy. But as we focus on the numerous tasks at hand, we at OCD Tech would like to remind you to continue to be vigilant when it comes to protecting your organizations from a data breach.
First and foremost, remind employees to be even more suspicious about emails, their true origination, links they contain, and the information that may be asking for.
And now that many organizations are operating on a more or entirely remote basis, make sure that you have everything in place to protect your business.
Click Here To Review Our Cyber Checklist