This past week has been full of change for our businesses and families. As business owners, we understand some of the trials you are encountering and are ready to help you navigate the available options. The news is full of confusing & overwhelming clips, comments and updates. We are analyzing information to deliver options to our clients and help you make decisions during this difficult time. The following is information as we know it today.
Extended tax returns and payments
- The 4/15/20 deadline for 2019 tax filing and payments as well as 2020 estimated tax payments are now due 7/15/20. Oklahoma (and many other states) follow Federal guidance.
SBA Disaster Loan Relief
- Low interest rate loans for businesses suffering economic injury from COVID-19.
- Interest rates 3.75% for for-profit businesses and 2.75% for non-profit businesses
- Visit https://www.sba.gov to learn more and apply. Best to apply during off-peak hours
Coronavirus Aid, Relief and Economic Security Act (CARES Act)
- Passed by U.S. Senate March 25th and the U.S. House today
- Provide significant opportunities for businesses with fewer than 500 employees — including sole proprietors and nonprofits to continue to employ their employees
- These “paycheck protection loans” are available for up to an amount equal to 2.5 months of the employer’s payroll costs, based on previous 12 months and will be fully guaranteed by the federal government.
- The loan can be used for payroll costs, mortgage payments, rent and utilities.
- Eight weeks after the loan is made, and upon proof of payment of the eligible costs, 8 weeks of those costs will be forgiven. Any remaining balance of the loan will be payable at 4% over a ten- year period.
- By way of illustration, if average monthly payroll costs are $100,000, the loan amount would be $250,000. If payroll costs continue at the same level of approximately $23,000 per week. At the end of 8 weeks, $184,000 of payroll costs would be forgiven and up to an additional $66,000 of rent, utilities and mortgage payments would also be eligible for forgiveness.
- Additional provisions of CARES Act ease income tax provisions that may benefit your income tax situation.
Families First Coronavirus Response Act
- Effective April 1, 2020. Expands Family Medical Leave Act (FMLA) to employers with 500 or fewer employees to include workers who cannot work because their child’s school was closed due to COVID-19.
- Mandates employers provide additional paid sick leave for employees who cannot work or telework due to reasons caused by COVID-19.
- Provides significant payroll tax credits for employers and income tax credits for self-employed, immediately available to ease the financial burden of complying with these mandates.
Oklahoma Essential Business
- On March 24,2020, Governor Stitt issued the Fourth Amended Executive Order 2020-07.
- Paragraph 20 of that issuance ordered all businesses not identified as being within a critical infrastructure sector as defined by the U. S. Dept of Homeland Security as identified by ODH on its website to close.
- Businesses that believe they are essential may appeal to the State for consideration
There are a number of questions still being evaluated by CCK as well as others at Federal and State levels. We are in constant contact with many other professionals to get the correct information and the strategic answers for you. CCK is here to assist you in navigating these many complex laws and regulations. We appreciate the opportunity to work through the best solutions for you and your business during the current unprecedented events.
