Qtr 1 - Newsletter 2020
From the President
Dear Members and Friends of CMA,
Unless you've been in a coma for the past month or on an extended vacation to some isolated area with no access to the outside world, you are acutely aware of the impact COVID-19 has had across the world and your local community.
While the impact on individuals and families who have been struck down by the virus is significant and cannot be ignored, the impact on society as a whole and the world's economy has taken a significant toll as well. Already we are hearing of businesses and industries that are shutting their doors, with some of them unsure as to whether they will ever be able to open up for business again. Churches and religious nonprofits are in the same boat when it comes to the operational and financial impact the virus has had on how we do business. But there is some good news coming out of Washington that can help. Last week President Trump signed into law the Families First Coronavirus Response Act which will provide significant payroll relief to employers who find themselves having to temporarily shut down and/or make accommodations for staff unable to work during this time. Several articles are included in this newsletter to help you begin to understand how your ministry may be able to receive financial assistance for ongoing payroll costs while workers are out for Coronavirus related reasons. As things develop, we will continue to bring you the latest information in subsequent newsletters and special reports. And as always, if we can be of any assistance to you in any way we are just an email or phone call away.
Yours in His Service,

Steve Boersma, Ph.D.
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Psalm 46
1 God is our refuge and strength, an ever-present help in trouble. 
2 Therefore we will not fear, though the earth give way and the mountains fall into the heart of the sea, 
3 though its waters roar and foam and the mountains quake with their surging.
4 There is a river whose streams make glad the city of God, the holy place where the Most High dwells. 
5 God is within her, she will not fall; God will help her at break of day. 
6 Nations are in uproar, kingdoms fall; he lifts his voice, the earth melts.
7 The Lord Almighty is with us; the God of Jacob is our fortress.
8 Come and see what the Lord has done, the desolations he has brought on the earth. 
9 He makes wars cease 
    to the ends of the earth. 
He breaks the bow and shatters the spear; he burns the shields with fire. 
10  He says, "Be still, and know that I am God
    I will be exalted among the nations, I will be exalted in the earth."
11 The Lord Almighty is with us; the God of Jacob is our fortress.
FMLA Expansion for COVID-19
On March 18, 2020 the federal government passed, and signed into law, the Families First Coronavirus Response Act (the "Act") to help employees and businesses facing challenges related to the coronavirus. The Act, temporarily expands coverage and eligibility under the federal Family and Medical Leave Act (FMLA) for reasons relating to the COVID-19 pandemic, including temporary leave provisions.
The provisions of the Act become effective 15 days after the law was enactment and ends on December 31, 2020. This means beginning April 1, 2020 affected employers will need to adjust their employment and payroll practices comply. (read more)
IRS Provides New Refundable Payroll Tax Credits for Small Employers
The IRS has provided two new refundable payroll tax credits[1] for small and midsize employers, designed to immediately and fully reimburse them, for the cost of providing Coronavirus-related leave to their employees. This relief has been provided under the Families First Coronavirus Response Act (the Act), signed by President Trump on March 18, 2020.
The purpose of the Act is to help the United States combat and defeat COVID-19 by giving all American businesses with fewer than 500 employees' funds to provide employees with paid leave, either for the employee's own health needs or to care for family members. Eligible employers will be able to claim these credits based on qualifying leave they provide employees between the date the law goes into effect (April 1, 2020) and December 31, 2020. ( read more
IRS Forms 1099-MISC and 1099-NEC
Miscellaneous Income and Nonemployee Compensation
The IRS has made a significant change to one of their most used annual tax forms the Form 1099. Beginning with tax year 2020, employers will use new Form 1099-NEC to report non-employee compensation and the Form 1099-MISC has been redesigned and revised for reporting other income.

Redesigned Form 1099-MISC.
Due to the creation of Form 1099-NEC, the IRS has revised Form 1099-MISC and rearranged box numbers for reporting certain income.
(read more)
3rd Stimulus Package Agreed to in Principle March 25, 2020
The Senate and the White House agreed early Wednesday morning to a nearly $2-trillion stimulus package to combat the economic fallout of the coronavirus outbreak, including direct payments to most Americans and a half-trillion-dollar fund to shore up struggling companies. The bill now goes back to the House for review and approval.  The stimulus bill - by far the largest ever proposed is believed to include more than $300 billion for small businesses, $150 billion for local and state governments and $130 billion for hospitals.
The measure is the third stimulus bill proposed by Congress to address the economic and social disruptions of the COVID-19 health crisis. It follows an initial $8.3-billion measure largely aimed at developing a vaccine and a second package, passed last week, that mandated greater access to paid sick leave for workers as well as free COVID-19 testing.
The $2-trillion stimulus bill is expected to include direct payments of $1,200 or less to most adults, loans to businesses and an expansion of unemployment insurance and other aspects of the social safety net.
As details of the legislation become available CMA will work quickly to get the information out to you .
IRS Extends Due Date for Filing Federal Income Tax Returns and Income Tax Payments to July 15 
The Treasury Department and IRS are extending the due date for filing of Federal income tax returns and Federal income tax payments otherwise due on April 15, 2020. The new due date is July 15, 2020. The extended time to file is a result of the ongoing Coronavirus (COVID-19) emergency. The extension is automatic and available to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate entities, as well as those who pay self-employment tax. Any interest, penalty, or addition to tax for failure to file or pay tax will not accrue until July 16, 2020, as a result of the extension. If taxpayers need additional time to file beyond the July 15 deadline, they can request an extension by filing the appropriate form. The filing extension does not apply to the filing of any Federal information return due on or before April 15, 2020.  (read more)
Employment Corner
California's New Employment Law (AB 5)
New legislation can be challenging to interpret and California's new employment regulations regarding the legal status of workers who provide services to business is no exception. Additionally, nonprofits and religious organizations have come to understand that sometimes their organizations have been exempted from having to comply. In this case however, the new California statute appears to apply to all nonprofits operating in the State, regardless of type. (read more)