COVID-19

The Latest Information to Protect Your Business and Yourself

View Our Latest Webinar Video, Slides, & the PPP Loan Forgiveness Worksheet Below

Slide Presentation

PPP Loan Forgiveness Worksheet

Click the slide presentation to the right to find out the latest information on how to navigate your business amid the COVID-19 Crisis.

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

The small business loan section of the CARES Act is a valuable provision offering loan forgiveness and favorable terms for amounts subject to repayment.
We encourage businesses interested in this loan program to begin putting together the following information as required in the Senate’s version of the Act.
Click Here to determine:
  • 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)

About

The Paycheck Protection Program (“PPP”) authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. All loan terms will be the same for everyone.
The loan amounts will be forgiven as long as:
  • 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.
Payroll costs are capped at $100,000 on an annualized basis for each employee. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
Loan payments will be deferred for 6 months.
FAQs
New information on the Paycheck Protection Program loan continues to come out piece by piece. The below application and borrower information is some of the first procedural guidance we have received so far. You may notice that certain information, such as loan terms, differ from our previous communications. The definition of payroll costs is also more broad in the application than the text from the bill. We are continuing to work through this guidance to get you the best information in time for the April 3 rd open application date, including any new documents required for application and changes to the calculation of the loan amount.

 

Helpful Links
Click Here to Access The Application
The SBA’s initial round of guidance may be found HERE

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
The best way to get through these uncertain times is to plan, put your plan into action and be prepared.

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).

  1. The deadline for both financial statements and Single Audit reports has been extended six months (September 30, 2020).
  2. 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

Have A Question?  Let Us Know How We Can Help!