How are you?
I Have Some Helpful Info to Share
Written by Jake Huffmyer, TRASA President
First and foremost, I hope each of you are safe and sound as well as your families. During this great time of uncertainty, it’s important to be kind to yourself and others!
Strong leadership is essential in uncertain times, and it’s hard. We must be able to navigate the stress, challenge, and fear of the situation ourselves, and, in turn, support those around us as they navigate it as well.
TRASA is here for all its members to continue to provide a place of stability, support, resources where we can. We have been receiving a lot of phone calls from our membership asking for a sound source of advice for small business struggling with payroll and essential expenses like rent and utilities.
Below is a brief summary of the CARES Act and a link to several resources including
Blue Slate Accounting who has offered
free consultations by appointment for TRASA members
through the scheduling app below.
They offer sounds advice with no obligations and are a true community leader.
If you would like help navigating this maze of information and deciding upon the best options for YOU, please feel free to set up a time to talk with
Lauri Paxton at Blue Slate Accounting
. If you'd like to know more about Blue Slate Accounting visit their
NFP: Insurance Brokerage and Consulting
is another great resource for commercial insurance, corporate benefits and client resources. Want the latest insights on COVID-19?
On March 27, 2020, President Trump signed into law “Phase Three” of the congressional response to the COVID-19 emergency. The legislation, titled the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), follows intense negotiations over the last week.
HERE ARE SOME HIGHLIGHTS YOU MIGHT FIND HELPFUL:
350 BILLION IN LOANS YOU MIGHT NOT HAVE TO PAY BACK
If You Have Paid...
Or independent contractors
You Can Obtain A Loan And Not Have to Pay It Back
Proceeds used for approved expenses can be forgiven and do not need to be repaid
Track Disbursement of Funds, Apply To Forgivable Expenses, Document The Appropriate Amounts So You Don’t Have To Pay The Loan Back
Once the loan is obtained, there needs to be documentation of all amounts paid towards payroll in the subsequent 8 weeks, which will be forgiven in full. You can also have your amounts forgiven for rehiring employees terminated due to the COVID-19 crisis.
Additionally, amounts spent on mortgage interest, lease payments and utilities that were in place prior to February 15, 2020 will be forgiven.
This documentation needs to be submitted to the lender.
If You Apply (some loans), Get 10k In 3 Days. If You Don’t Get Approved, Advance May Be Forgiven.
Emergency grant to allow someone who has applied for a disaster 7(b) SBA loan to request a $10,000 advance, which the SBA must distribute within 3 days. If you are subsequently denied, you don’t have to repay the advance loan.
DON’T PAY PENALTIES FOR TAKING OUT YOUR RETIREMENT FUNDS
This waives the 10% early withdrawal penalty for distributions up to $100,000 from qualified retirement accounts.
Must be a COVID-19 related distributions
10 BILLION OF DISASTER LOANS
You can get additional disaster loans (7b) to use for other other expenses not related to payroll, rent, mortgage interest, and utilities. These loans can be used for other business operations with some limitations.
Defer Your Payroll Taxes For 2 Years
You can defer payment of all payroll taxes over 2 years. 2020 payroll taxes paid 50% by the end of 2021 and 50% by the end of 2022.
Get a Rebate Of Up To $2,400 (Married), $1,200 (Individual)
All US residents with adjusted gross income up to $75,000 ($150,000 if married) who are not a dependent of another taxpayer and have a work eligible social security number, are eligible for the full rebate. In addition they are eligible for an additional $500 per child.
The IRS will use a taxpayer's 2019 tax return if it's been filed, or in the alternative, their 2018 return
The rebate amount is reduced by $5 for each $100 that a taxpayer's income exceeds the phase-out threshold.
If You’ve Had NOL Losses In ‘18, ‘19 ‘20, Amend Your Return For Cash
You can amend your tax returns from 2018, 2019, 2020 and get a refund instead of a carry forward, going back up to 5 years.
Refundable Payroll Tax Credit For 50% Of Wages Paid
You can get a Payroll Tax Credit of 50% of wages paid to employees if your operations were partially or fully suspended,
the gross sales declined by more than 50% when compared to the same quarter in the prior year. Credit is provided up to $10,000 per employee.
I hope you find this information to be of assistance to you.
See the list April webinars offered below to help you stay in touch!
Be well and enjoy this picture of me and my cat Lou celebrating his 13
birthday under quarantine!