Edition #10
April 3, 2020
HSC COVID-19 Fast Response Team
We are here to help!

In these uncertain times with multimedia channels reporting conflicting and sometimes incorrect information, our firm is working to add clarity to this situation by providing new and verified information as it becomes available to us. We have also set up a Coronavirus Resource Center on our website for ongoing information. 

In addition, we have created the HSC COVID-19 Fast Response Team to serve our clients in addressing the difficult decisions they are being faced with on a daily basis. This dedicated multi-disciplinary team consists of our tax, payroll, HR, capital markets and accounting professionals. 

If you have questions or would like to speak with this team please contact your HSC team member or Kyle Wininger, CPA, CICA, CVA, CFE at kwininger@hsccpa.com
Our Latest Understanding of PPP Loan Program (SBA Forgivable Loan)  

The U.S. Small Business Administration on Thursday issued an interim final rule (yes. . . that is right, an interim final rule. . .) for the Paycheck Protection Program (PPP), which is offering $349 billion in forgivable loans that small businesses impacted by the Coronavirus pandemic can use to cover costs including payroll and rent.
In addition, early this morning they have issued a NEW application form -  
PPP - Final (hopefully) Borrower Application Form.  It is not clear if the SBA will accept the previously issued forms or not.  Therefore, we recommend that you consider completing the new form (unless your banker has instructed you otherwise). 
Due to the quickly evolving nature of this situation, and the differing approaches certain banks are taking, we recommend that you stay in close contact with your banker in case anything else changes.  At this point, they are your best source of timely information. (I do feel compelled to say that they are in a difficult situation working through this void in guidance from the SBA and Treasury, so grace is likely warranted).

A Few Clarification Points From a Read of the Interim Final Rule:
  • Average Monthly Payroll Calculation -- For most companies this will be calculated on the average monthly payroll of 2019. If your company is extremely seasonal you may elect to use the average payroll between 2/15/2019 and 6/30/2019.  (The guidance is still silent on Trailing 12 versus 2019 pay - stay in close contact with your banker on this.  . . many are calculating and preparing for both scenarios.)
  • Loan interest rate has changed to 1%.
  • Term of loan has changed to 2 years with payment deferral for 6 months.
  • It appears that the other operating factors such as mortgage interest, rent and utilities could make up to, but not more than, 25% of the loan amount repaid by the government.
Thank you for trusting in HSC to assist you as we work through these difficult and uncertain times together.

For more information, contact Scott Touro, MBA at stouro@hsccpa.com
IRS Released Additional Guidance on Interpretation of Families First Coronavirus Act 

The U.S. Department of Labor will continue to provide compliance assistance to employers and employees in the form of Frequently Asked Questions on their responsibilities and rights under the FFCRA. 

These   required posters  issued by the Department of Labor are required to be posted.

Click here to read about the Families First Coronavirus Response Act and to obtain some helpful flowcharts regarding the Act.
Frequently Asked Questions Issued by the IRS Related to Interpreting the Employee Retention Payroll Tax Credit Program

The CARES Act implemented the Employee Retention Credit, designed to encourage businesses to keep employees on their payroll with an employee retention tax credit. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19.

For more information contact Matt Folz, CPA at mfolz@hsccpa.com.
RSM Coronavirus Webcasts

RSM Coronavirus Webcast Series

RSM has launched a weekly webcast series on issues related to the Coronavirus. The webcasts are approximately one hour, each Wednesday at 1:00 p.m. EDT.

Date and time for the final webcast is below:
Wednesday, April 8, 2020 - 1:00 p.m. EDT

Free webcast, no CPE will be provided. 

Click here to register.
Keeping Other Members of Your Team Informed

If you would like other members of your team to begin receiving this communication, please forward to each individual and they can subscribe here or email Leslie Wight at lwight@hsccpa.com and she will add them to the communications.

Disclaimer: The information contained in this email is for general guidance on matters of interest only. The publication does not, and is not, intended to provide legal, tax or accounting advice.  
Internal Revenue Service rules require us to inform you that this communication may be deemed a solicitation to provide tax services. This communication is being sent to individuals who have subscribed to receive it or who we believe would have an interest in the topics discussed.  

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