Not sure you will get all of the relief you’re legally due this tax season? We’re here to help.
Ask us about some of the federal government’s new programs for small businesses, if you haven’t already. If you’re already one of our clients, we’ve been working hard to keep you up to speed on all of the programs that may apply to you. But don’t hesitate to schedule a new appointment with us —just to make sure any new changes out of Washington this year won’t catch you by surprise.
Here, below, are the four main small business aid programs from 2020 that were initiated and passed by Democrats and Republicans last year and signed into law. Don’t wait to reach out with any questions you may have!
- The CARES Act: Coronavirus Aid, Relief, and Economic Security
The CARES Act introduced the Paycheck Protection Program (PPP) as an emergency loan that allocated billions of dollars to small businesses. The PPP is a forgivable loan, so long as the funds are used to fund payroll, rent/mortgage and utility costs. Any money a business received and that was forgiven through the PPP program is not considered taxable income for 2020—though any amount not forgiven is taxable. Reach out with any questions specific to your situation.
- Economic Injury Disaster Loan (EIDL)
This is a Small Business Administration loan to help businesses affected by mandatory shutdowns or economic slowdowns due to the pandemic. A business that receives funding from an EIDL loan is still required to pay income taxes on this loan. Double-check with us what you may owe.
- Employee Retention Tax Credit (ERTC)
Businesses affected by COVID-19 can use the ERTC to keep staff members on board but to qualify, a business has to have been fully or partially closed due to a government-mandated shutdown or experience a decline in gross receipts of more than 50% of any given quarter when compared with the same quarter of 2019. Ask us if you’re eligible for a tax credit under this program, and if so — what you should be able to expect.
- Families First Coronavirus Response Act (FFCRA)
This law required some businesses to provide sick/family leave to employees who were affected by COVID-19. Businesses that made these payments are eligible for tax credits for 100% of the cost of sick-leave pay, family-leave pay, qualified healthcare plan expenses and the employer’s share of federal taxes for sick leave expenses. Ask us to help you calculate the proper tax credits due to you under this Act.
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