Fortune Family,
As we all await both the confirmation and details surrounding the specifics of the CARES Act, we want you to take this time to prepare in advance.
One of the sections in the CARES Act bill is a loan provision backed by the Small Business Administration (SBA) to help small businesses like your practice. Based on preliminary discussion that the loans will be calculated based on your average monthly payroll plus certain employee benefits (averaged over 12 months). The loan should be approximately 2.5 times the 12 month average. We are working closely the one of the largest SBA lenders in the country to help streamline this process and get Fortune Management clients ahead of the game.
While this bill has not yet passed, we want to help prepare our clients as much as possible.
Things you need to begin gathering:
- Obtain your Employee Earnings reports for the last 12 months (after your next payroll is run and going backwards 12 months.) You may want to tell your payroll company the reason you are requesting this, as they may be able to create a custom report with the following figures included:
- This report must show the gross wages paid to each employee for the time period above. It should include you as the owner if you were paid through payroll, as well as any associates you may have in your practice.
- Must show the paid time off, vacation pay and family medical leave pay you paid out over this timeframe to each employee.
- Must show any state or local taxes that were assessed on the employee’s compensation during this timeframe.
- Pull all your 1099s for 2019 issued to those who you paid non-employee compensation to. This does not include anyone that you issued a 1099 to for services, but rather a true independent contractor which would otherwise be an employee of your business. You should have copies of these from your accountant or CPA, depending on who prepared them.
- Document the total of all health insurance premiums paid by you, as the owner, for you and your staff under a group health insurance plan for the last 12 months. Your insurance provider should be able to provide this figure.
- Document the sum of retirement plan funding (401(k) plan, SIMPLE IRA plan, SEP IRA plan) that came from you as the employer. This should not include any funding that came from the employee’s out of their paychecks for their deferrals for the past 12 months.
- If your plan administration report is finalized for 2019, we recommend you use this as your source for retirement plan funding totals.
- If your plan administration is not going to be complete in the next two months, then you will need to track down the amount deposited into the retirement fund account(s) for your plan. This should not include salary deferral portions over the last 12 months.
Hr for Health
will be hosting a webinar with updates on the new bill on Monday, March 30
th
at 9:00 AM PST. Please use the following link for registration:
This webinar should answer many questions you all will have about engaging your team if the bill passes
.
