COVID-19 Legislation - What's Next?
Updated: Apr 20, 2020
Easytrack Payroll knows there is an immense amount of information coming at you in regard to legislation surrounding COVID-19 and that it can be a major challenge trying to determine the best course of action for your business. We also know that you have a lot of questions. So do we. Easytrack Payroll's team is here for you and your business. Along with our partners - CPAs, bankers, financial advisers, and health and retirement brokers - we have been working around the clock to digest all the legislation. The passing of the bills is only the first step; implementing them will require more time. We ask for your patience as we await further guidance from the various State and Federal tax agencies as to how to execute upon the bills to ensure proper reporting and compliance. We also think it is helpful to clarify how best to seek assistance as you wade through all of this information. While much of the legislation impacts or touches payroll in some way, Easytrack Payroll often times cannot advise on the full scope of the legislation.
We are providing the following as guidelines for what we can help you with versus when you need to also include one or more of your specialized advisers:
Easytrack CAN: - Provide updates regarding legislation that is passed. Please know that we are only sharing confirmed information, not possibilities. - Set up your payroll account to track wages that are eligible for the various payroll tax credits as directed by you and your advisers - Apply any applicable tax credits to tax balances due * Note - We will require that our clients provide documentation supporting eligibility for specific credits - Work with you to generate the applicable reports in the payroll software that contain the information needed for loan applications Easytrack CANNOT: - Provide legal advice surrounding paid leave requirements, especially those specific to your particular employees and situation - contact your attorney and/or CPA - Advise which tax credits your business is eligible for - contact your CPA and/or attorney - Help complete and/or review a loan application - contact your banker, financial adviser, CPA, and/or resources available from the SBA Given all of this, here is the information we have as of today that we think is most important to share: 1. If you meet the criteria and follow the guidance, the PPP - Paycheck Protection Program - loan with forgiveness, generally looks to be the way to go over other methods of economic relief. Consult your banker, CPA, and attorney (if necessary) in regards to your specific situation.
For specific information regarding the PPP Loan and utilizing the funds, reference Easytrack's blog post by Clicking Here. 2. The IRS has confirmed that businesses can defer the employer portion of Social Security taxes EVEN IF they have applied for the PPP loan. Consult your banker and/or CPA for guidance on any payroll-related credits and deferrals. 3. The PPP loan application is now available. Contact your banker for more information. There is also speculation surrounding the likelihood of a second round of funding for the PPP loan. 4. Keep very good records of where any funds are spent in order to qualify for any loans or credits. Additionally, you will need your financial reports in order. Work with your bookkeeper and/or CPA on this. If you do not have a bookkeeper and/or CPA, we can gladly recommend one of our partners. Easytrack Payroll will continue to send regular email blasts and update our website as information becomes available. Our team is here to answer your questions and/or point you in the right direction and we will take care of whatever payroll needs you have. We will get through this together!