The employee retention credit enacted by the CARES Act is a fully refundable tax credit equal to 50% of up to $10,000 in wages an employer pays to each employee (i.e., $5,000 per employee).  Employers can immediately access this benefit by reducing the payroll taxes that they deposit on a monthly or semi-weekly basis by the credit amount.  …

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The Paycheck Protection Program (PPP) re-opened for applications yesterday, and although plenty of questions continue to need answers, the focus remains on the potential forgiveness of PPP loans. The amount of forgiveness depends on the borrower’s payroll costs over an eight-week period, but when does that eight-week period begin? It in fact begins on the date that the…

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The coronavirus pandemic (COVID-19) has fast become the defining global health crisis of our time and the greatest challenge to almost all entities, either directly or indirectly. There are significant disruptions to global supply chains, suspension, or in worst cases cessation of many business operations, significant volatility and downturn in financial, commodity and energy markets,…

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The CARES Act implements new types of “coronavirus-related distributions” from retirement plans, including 401(k), 403(b), 457(b), and employee stock ownership plans, as well as individual retirement accounts (IRAs).  These distributions are not subject to the 10% early withdrawal penalty that would otherwise apply to early distributions from these types of plans, nor are they subject to withholding…

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Preparing for PPP Loan Forgiveness Businesses that have secured a loan through the PPP should already begin preparing and arranging for the information that they will eventually need to apply for forgiveness of that loan following the end of the eight-week, post-loan closing period.  A formal application is yet to be released by the Small Business Administration…

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On or around April 17th, the IRS will be providing a link on their website for individuals to provide their bank account information if they haven’t previously received direct deposit. This will allow you to receive your stimulus money by direct deposit rather than by check. Visit the IRS Website.

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In response to the COVID-19 pandemic, the New Jersey Economic Development Authority (NJEDA) is offering both a grant and a loan program for small businesses. Here is a summary of these programs as of April 3, 2020. Small Business Emergency Assistance Grant Program This program provides a maximum individual grant of up to $5,000 to businesses in specific industries under…

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On Thursday, April 2nd, the SBA released thirty-one pages of an interim final rule concerning the PPP.  Many of the provisions address lender-related details, and several additional regulations are still forthcoming. The following is a summary of the document. 1 – Independent contractors do not count as employees for purposes of a borrower’s PPP loan calculations.  This is somewhat of…

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The SBA recently released some early guidance regarding the paycheck protection program (PPP), which is open through June 30, 2020.  This guidance confirms that: Loan terms will be the same for all borrowers Loans will carry a 0.50% fixed rate No collateral is required No personal guarantee is required Loans have a two-year term and no pre-payment…

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Today we learned that the New Jersey state income tax filing deadline and the corporation business tax filing deadline has been extended from April 15th to July 15th.   As always, speak to your MSPC partner about how the changes relate to your specific situation.

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