On March 27th, 2020, Congress passed the CARES ACT, which included provisions that allowed banks to lend up to $349 billion in the Paycheck Protection Program set up by the Small Business Administration. The rules have changed several times and are likely to change again. For the time being, businesses… [Read more]
SBA PPP Loans: What You Need to Know
With the recent refunding of the SBA Paycheck Protection Program, there are a few details that you should know before you decide to apply. If you take out an SBA PPP Loan, you are required to spend 75% of that loan on the payroll. Any additional unused funds will be… [Read more]
Outdated IRS Systems Reach Tipping Point
During prior government closures, the IRS still was able to have essential workers be in federal buildings to process tax returns, sort mail, and process payments. The recent coronavirus pandemic blew that scenario out of the water due to health concerns, spread rate, and social distancing. 90% of US taxpayers… [Read more]
SURGE IN UNEMPLOYMENT MAY LEAD TO EDD AUDITS
The California Employment Development Department (EDD) has been overwhelmed with claims for unemployment insurance, as the numbers of Californians applying for the benefit increases every day. The receipt of unemployment insurance benefit is a right of California employees and those workers that are classified as independent contractors do not enjoy… [Read more]
Fed to audit all SBA PPP loans over $2m
Despite pressure, publicly held companies in business sectors from hotels to cruise ships are refusing to give back SBA PPP funds. The SBA has said that public companies with “substantial market value” and the ability to raise money through capital markets were not the intended recipients of the Small Business… [Read more]
1099s and SBA PPP (VIDEO)
It’s safe to say that everyone has been impacted by the COVID-19 pandemic, but small businesses have been hit especially hard by consequential long-term closures and plummeting sales. While it’s important to be creative when cutting costs in times like these, it’s equally pertinent to keep your business aligned with… [Read more]
CA EDD and Workshare Audit Risk
Long-term closures caused by COVID-19 have led many companies to make massive cuts, mostly by furloughing or laying off their employees. However, qualified companies have the option to enroll in the EDD Workshare Program, which allows a business to pay full salaries to its workers who have had to reduce… [Read more]
Tips for Productive Remote Work
As the Coronavirus pandemic has continued to unfold, businesses have had to adjust to situations that they are not used to. Larger companies have the luxury of relying on existing infrastructure and policies that allow for a smooth transition to work-from-home situations. However, it is rare to find a small… [Read more]
What CPAs need to know about CARES
For CPAs, one of the most important parts of the CARES loan package which has brought $2.3 trillion in loans to households, businesses, and state and local governments is the Main Street Lending Program, which provides for up to $600 billion in loans to small and midsize businesses. The Fed… [Read more]
Optimize Your PPP Loan Use for Forgiveness
Approximately 1.6 million of companies have received loans under the Small Business Administration’s Paycheck Protection Program (PPP), and those funds are beginning to hit bank accounts across the country. Now that the money from your PPP Loan is here, or on its way, it is time to think about doing… [Read more]
