Last year, the CARES Act granted businesses and nonprofits a payroll tax credit, but due to its several restrictions most clients were unable to qualify. The newly passed Taxpayer Certainty and Disaster Tax Relief Act of 2020, a part of the Consolidated Appropriations Act of 2021, drops many of the restrictions. In so doing, the new law…

The Paycheck Protection Program (PPP) now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan. Second Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used…

After months of negotiations, Congress finally passed the Consolidated Appropriations Act late in the evening last night, and the new legislation includes a little something for everyone. Here are some of the highlights relating to the Payroll Protection Program (PPP): The bill provides that gross income does not include any amount that would otherwise arise from…

The Families First Coronavirus Response Act (FFCRA) that was passed in March required specified employers to provide emergency paid sick leave, as well as emergency paid leave under the Family and Medical Leave Act (FMLA), to employees. FFCRA leave ends this month, but tax credits continue for leave voluntarily extended to employees.Highlights include: Mandated FFCRA Leave ends…

The Paycheck Protection Program (PPP) provided a lifeline for thousands of small businesses across the nation, helping struggling owners pay employees to remain in business during the pandemic. Once borrowers provided lenders and the Small Business Association (SBA) with verification that the proceeds were used appropriately, the loans would be forgiven. Small businesses hope for a second…

Last year Illinois enacted the Workplace Transparency Act (WTA), which requires employers provide sexual harassment training to employees. In Illinois, it is a civil rights violation for any employer to engage in sexual harassment, and due to the Illinois General Assembly’s finding that tolerance of sexual harassment has a detrimental influence on the workplace environment, employers are…

The Paycheck Protection Program (PPP), provides loans and loan forgiveness based on borrower’s certifications and documentation provided by the borrower. The SBA has announced that it will begin auditing these applications once the filing of the forgiveness request is made. Due to the many and ongoing changes in guidance and rules, we recommend early filing for forgiveness, as…

A Presidential directive was issued on Saturday, August 8, 2020, deferring collection of certain U.S. payroll taxes normally withheld from employees’ paychecks from September 1 through the end of the year.  The IRS issued guidance on August 28, 2020, attempting to implement the directive, allowing employers to defer withholding the employee portion of certain payroll taxes (where pretax…

After acting decisively to support the economy in March, Congress has failed to agree on a subsequent round of spending. Key economic supports, like the $600 supplement to unemployment insurance payouts and a moratorium on evictions, were allowed to expire at the end of July. Presidential executive orders to continue certain protections are not likely…

Senators on Friday urged the Treasury Department and Small Business Administration (SBA) to simplify the process for businesses to receive loan forgiveness under the Paycheck Protection Program (PPP). “In this public health and economic emergency, we must do all we can to make sure our small businesses have the support and assistance they need to weather the crisis,” they said in a letter to…

More than $130 billion in Payroll Protection Program funding is still available for small businesses, independent contractors, and nonprofits, but the opportunity is about to end. While the time to spend PPP money was just extended, the last day a PPP request (and essentially free money) can be made is only weeks away - June 30th, 2020. More…

Amendments to the SBA Payroll Protection Program became law on Friday, June 5th, which extend the time to spend PPP money from eight (8) weeks to twenty-four (24) weeks. However, relying on this new 24 week time has disadvantages, due to penalties from pay reductions or lower headcounts during the extended 16 weeks time. If you already have a…