How do you Understand Legislation the Government is Passing?
by Ann Arnold, CPA - Chief Strategy Officer, BIG - Buyers Intelligence Group
March 27, 2020
It is extremely difficult to keep track of everything going on and what the government is passing. Today I took a webinar hosted by the NJCPA society and it was very informative and gave some great resource links as well www.njcpa.org/coronavirus/links. You can browse around and click on links that talk about the federal government. I am sure each state will have something similar.
The President signed the CARE stimulus package today. Here is an interesting synopsis: https://taxfoundation.org/cares-act-senate-coronavirus-bill-economic-relief-plan/
One point that sticks out at me was the following:
Employers are eligible for a 50 percent refundable payroll tax credit on wages paid up to $10,000 during the crisis. The credit would be available to employers whose businesses were disrupted due to virus shutdowns and those that had a decrease in gross receipts of 50 percent or more when compared to the same quarter last year. The credit can be claimed for employees who are retained but not currently working due to the crisis for firms with more than 100 employees, and for all employee wages for firms with 100 or fewer employees.
The AICPA (American Institute of Certified Public Accountants) has a resource page as well https://www.aicpa.org/news/aicpa-coronavirus-resource-center.html. One of their links was a State Tax Filing chart which shows you so far what each state is doing regarding tax deadlines and extensions.
Please note, if you have not heard yet, the federal government has extended the tax filing deadline to July 15, 2020. 1st Quarter Estimated tax payments will be due by July 15th, however, second quarter tax payments are still due June 15, 2020.
Stimulus checks will soon be coming from the government according to the bill they passed. The way the law is written, the checks that will be sent now are actually just advanced payments of a new refundable tax credit for the 2020 tax year. So, if you don't get a stimulus payment in 2020, you can claim it next year as a refund or reduction of the tax you owe if you file a 2020 tax return by April 15, 2021. Here is a useful calculator to help determine the amount you may qualify for: https://www.kiplinger.com/tool/taxes/T023-S001-stimulus-check-calculator-2020/index.php
Linked here you'll find a great summary created by Economic Innovation Group for understanding the Paycheck Protection Program.
I thought this could be a good checklist of questions businesses should be asking and addressing: FM Magazine "Coronavirus Business Planning Questions"
Things are so fluid and are changing by the hour. Please consult your accountant for specific questions you may have for your business. And remember, they are trying to wrap their heads around this as well so give them a couple of days!
Stay safe and healthy everyone!