Your McCarthy Update 

Marty McCarthy, CPA, CCIFP
Focused on You. Dedicated to Your Success.
October 12, 2020


As the world continues to struggle to contain the coronavirus, we are trying to figure out ways to continue operating in the pandemic. Here are some articles to help:

(Accounting Today) Deadline to register for stimulus payments extended. The deadline to register for an Economic Impact Payment has been moved to Nov. 21, five weeks beyond the original deadline. Read more.

(Construction Dive) OSHA: Employers have 8 hours to report work-related COVID-19 deaths.
Employers must report a work-related COVID-19 employee death to the U.S. Occupational Safety and Health Administration (OSHA) within eight hours of learning about it, the agency said in guidance updated Sept. 30. Read more.

(CPA Practice Advisor) 58% of Americans Plan to Stop Using Cash After COVID-19. More than half (58%) do not plan to go back to using cash after the pandemic ends, choosing instead to transition to a cash-free lifestyle. Millennials are leading the charge, with 64% making the switch, followed by 53% of Generation X, and 42% of Boomers. Learn more.

(IRS) IRS extends Economic Impact Payment deadline to Nov. 21 to help non-filers. The Internal Revenue Service announced today that the deadline to register for an Economic Impact Payment (EIP) is now November 21, 2020. This new date will provide an additional five weeks beyond the original deadline. Discover why.

(Journal of Accountancy) SBA clarifies deferral period for PPP loan payments. The U.S. Small Business Administration (SBA) released guidance clarifying that lenders must recognize the previously established extended deferral period for payments on the principal, interest, and fees on all Paycheck Protection Program (PPP) loans, even if the executed promissory note indicates only a six-month deferral. Read more.

(New Jersey Business) Answers on When Employees Can Use Leave Laws if Children Are Learning Remotely. New Jersey has a new webpage providing guidance on when state and federal leave laws cover employees whose children are attending school remotely, or on staggered schedules, due to COVID-19. Learn more.

(Philadelphia Business Journal) The feds won't tax PPP loan forgiveness — but some states might. Small businesses may not be taxed by the federal government when their Paycheck Protection Program loans are forgiven, but experts say it's still unclear whether individual states will treat that forgiveness as taxable income. Discover why.

(Philadelphia Business Journal) New forgiveness application for PPP borrowers with smaller loans. Small businesses that obtained Paycheck Protection Program loans of $50,000 or less can now use a streamlined application to apply for loan forgiveness. Learn more.

(Philadelphia Business Journal) Wolf administration relaxes indoor, outdoor gathering limits.
The Wolf administration eased restrictions on indoor and outdoor gathering limits beginning last Friday, instituting a three-tier system based on maximum occupancy limits. The new restrictions will allow between 10% and 20% of maximum occupancy indoors to a limit of 3,750 people and between 15% and 25% of maximum occupancy outdoors to a limit of 7,500 people. These restrictions are for what the state said are temporary events that occur over a limited time frame and includes fairs, festivals, concerts or showings of movies, business meetings or a party or reception in a multi-room venue. Read more.

In other news:

(Accounting Today) Three keys to creating remote team chemistry. One of the great challenges of working remotely is replicating the interactions and relationships that develop naturally in a physical office. Camaraderie and morale, huge factors in developing positive team chemistry, cannot be forced. Chemistry is not quantifiable or trackable; it is an organic quality that changes over time, much like company culture. Leaders cannot force chemistry to happen nor should they try. Instead, creating a powerful, positive team chemistry remotely takes a more delicate approach. Learn more.

(Financial Planning): IRS cuts entertainment tax break. The IRS issued guidelines scaling back a tax break for client entertainment. The final rules largely adopt a proposed version from February that clarified meals are still eligible for a 50% deduction if they occur during an entertainment event — as long as receipts separately itemize their cost. Deductions are not permitted if expenses for food and drink and entertainment are not separate, the rules said. Additionally, only meals are deductible; drinks and hors d’oeuvres at entertainment events are not. Read more.

(ZDNet) Ransomware: Gangs are shifting targets and upping their ransom demands. Ransomware attacks continue to grow, according to data from IBM, which also suggests that ransomware gangs are upping their ransomware demands and getting more sophisticated about how they calculate the ransom they try to extort. Learn more.

We will continue to keep you updated. Please visit our COVID-19 Resource Page for more alerts.

Feel free to contact any member of our team at (610) 828-1900 (PA) or (732) 341-3893 (NJ) with questions. Rich Higgins, CPA, managing principal – New Jersey office can be contacted at Richard.Higgins@MCC-CPAs.com. I can be reached at Marty.McCarthy@MCC-CPAs.comAs always, we are happy to help.

Stay safe,

Marty McCarthy, CPA, CCIFP
Managing Partner
McCarthy & Company

Disclaimer: This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).