What the Coronavirus Means for Your Business
What the Coronavirus Means for Your Business
The coronavirus (COVID-19) outbreak has required us all to take significant steps to protect ourselves, our families, friends, coworkers, and business partners.
In addition to protecting our employees, we are very focused on making sure we are providing the service and support to you and your clients that you have come to count on from Millennium Medical Solutions Corp.
CARES Act Small Business Guide Checklist
Paycheck-Protection-Program-Application-3-30-2020-v3 due June 2, 2020 or sooner, assuming funds are available. Employers will need to provide their lender with payroll documentation.
COVID-19 Employee Retention Credit available for Businesses Financially Impacted
The Treasury Department and the Internal Revenue Service today launched the Employee Retention Credit, designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19.
SMALL BUSINESS ADMINISTRATION (SBA) LOANS
CARES ACT LOAN PROGRAM CHART
The CARES ACT includes 2 different loan programs:
1. The EIDL (Economic Injury Disaster Loan) direct through the SBA Website. EIDL provides small businesses and non-profits with low-interest loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing due COVID-19.
2. SBA Relief Loan (Paycheck Protection Program) that is done through banks and SBA nonbank preferred lenders. Thee PPP provides loans of up to $10 million to support small businesses and other eligible entities to pay workers, interest on mortgage obligations, rent, insurance, paid sick or medical leave, utilities, and payroll related costs incurred from Feb. 15, 2020 – June 30, 2020.
See below for a comparison between the two programs.
Qualified Expenses for Emergency EIDL Grant
• Providing paid sick leave to employees unable to work due to the direct effect of the COVID–19;
• Maintaining payroll to retain employees during business disruptions or substantial slowdowns;
• Meeting increased costs to obtain materials unavailable from the applicant’s original source due to interrupted supply chains;
• Making rent or mortgage payments; and repaying obligations that cannot be met due to revenue losses.
Assistance Available from New York State or New York City
- Mortgage and Fee Relief: New York State mortgage servicers to provide 90-day mortgage relief to mortgage borrowers impacted by the novel coronavirus.
- Waiving mortgage payments based on financial hardship. No negative reporting to credit bureaus, late payment fees or online payment fees. Grace period for loan modification. New York will implement a 90-day moratorium on evictions for residential and commercial tenants. The Governor has also asked DFS to instruct state-chartered banks to waive ATM fees, late fees, overdraft fees and fees for credits cards to help lessen the financial hardship of the COVID-19 pandemic on New Yorkers.
- NYC Small Business Continuity Loan Program. This program is available to New York City businesses with fewer than 100 employees that can demonstrate at least a 25% decrease in revenue as a result of COVID-19. Eligible businesses can apply for an interest-free loan up to $75,000
- NYC Employee Retention Grant Program The City is offering small businesses with fewer than five employees a grant to cover 40% of payroll costs for two months to help retain employees.
Does my business qualify to receive the Employee Retention Credit?
The credit is available to all employers regardless of size, including tax-exempt organizations. There are only two exceptions: State and local governments and their instrumentalities and small businesses who take small business loans.
Qualifying employers must fall into one of two categories:
1.The employer’s business is fully or partially suspended by government order due to COVID-19 during the calendar quarter.
2. The employer’s gross receipts are below 50% of the comparable quarter in 2019. Once the employer’s gross receipts go above 80% of a comparable quarter in 2019, they no longer qualify after the end of that quarter.
These measures are calculated each calendar quarter.
How is the credit calculated?
The amount of the credit is 50% of qualifying wages paid up to $10,000 in total. Wages paid after March 12, 2020, and before Jan. 1, 2021, are eligible for the credit. Wages taken into account are not limited to cash payments, but also include a portion of the cost of employer provided health care.
How do I know which wages qualify?
Qualifying wages are based on the average number of a business’s employees in 2019.
Employers with less than 100 employees: If the employer had 100 or fewer employees on average in 2019, the credit is based on wages paid to all employees, regardless if they worked or not. If the employees worked full time and were paid for full time work, the employer still receives the credit.
Employers with more than 100 employees: If the employer had more than 100 employees on average in 2019, then the credit is allowed only for wages paid to employees who did not work during the calendar quarter.
I am an eligible employer. How do I receive my credit?
Employers can be immediately reimbursed for the credit by reducing their required deposits of payroll taxes that have been withheld from employees’ wages by the amount of the credit.
Eligible employers will report their total qualified wages and the related health insurance costs for each quarter on their quarterly employment tax returns or Form 941 beginning with the second quarter. If the employer’s employment tax deposits are not sufficient to cover the credit, the employer may receive an advance payment from the IRS by submitting Form 7200, Advance Payment of Employer Credits Due to COVID-19.
Eligible employers can also request an advance of the Employee Retention Credit by submitting Form 7200.
Where can I find more information on the Employer Retention Credit and other COVID-19 economic relief efforts?
Updates on the implementation of this Employee Retention Credit, Frequently Asked Questions on Tax Credits for Required Paid Leave and other information can be found on the Coronavirus page of IRS.gov.
Do you have a Checklist for the Paycheck Protection Loans Documentations?
Start preparing NOW. Gather documents that provide proof of payment for allowable expenses under Paycheck Protection Program and be ready to make related certifications for the application.
Bookmark this page in order to help your business stay on top of this. Given the extremely dynamic and rapidly evolving COVID-19 situation, infomration above will be updated regularly.
With over three decades of combined experience working with all of the major insurance companies, we put business owners in the driver’s seat to buy a company policy on their terms and their budget. Most business owners enjoy the transparency and the peace of mind of an affordable group health insurance policy that’s aligned with their needs and the needs of their employees.
The information provided on this website is intended for informational purposes only. Millennium Medical Solutions Corp. does not offer legal or medical guidance. Those with legal or medical questions should seek appropriate assistance from a licensed professional.
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