CARES Act text – This is the actual bill that was passed.
SBA.Gov – This is for the SBA information that is helpful for small businesses.
Treasury – This is for the Paycheck Protection Loans
US Chamber of Commerce – Small Business Checklist – great summary
NFIB – Additional summaries for small businesses.
State Specific – There are so many options be sure to check with your state.
Economic Impact Payments (Stimulus Payment)
Single Filers will get $1,200. Phase out starts at $75,000 completely phased out at $99,000.
Married Filers will get $2,400 – Phase out starts at $150,000 completely phased out at $198,000.
Child dependents on a return add $500 to the total amount.
Head of Household (Single plus dependents) – $1,200 plus child amount, Phase out starts at $112,500 completely phased out at $146,500.
The IRS will begin sending economic impact payments in early to mid April; most taxpayers do not need to take any action to receive their payment.
The Department of the Treasury will use information from your 2019 tax return to determine AGI, dependents, and whether to send your payment by check or direct deposit. If you haven’t filed your 2019 taxes, your 2018 tax return information will be used.
Taxpayers who would like their payment to be sent by direct deposit instead of the payment method used on their most recent tax return will be able to provide their banking information to the IRS in the coming weeks. The IRS will be creating a system for tax payers to update their Direct Deposit Information.
Most up to date information on this is going to be at IRS.gov
People who typically do not file a tax return will need to file a simple tax return to receive an economic impact payment. Low-income taxpayers, senior citizens, Social Security recipients, some veterans and individuals with disabilities who are otherwise not required to file a tax return will not owe tax.
Being a business owner yourself your concerns are for your business and your clients. There is a lot to keep up to date with but here is a summary:
SBA Paycheck Protection Program
Must have been in business before Feburary 15, 2020
Max 4% loan rate
Loans up to 10M
Payroll cap of 2.5 times average monthly payroll.
Less than 500 employees
Loan can be forgiven. Involves 8 weeks of payroll, rent, utilities and interest.
Loans can be deferred up to 1 year.
Apply through SBA approved banking partner
SBA Economic Injury Disaster Loans
Emergency Loans up to $10k- can be used against PPP forgiven loan above
Capital up to $2M
Interest rate 3.75%, non profit rate 2.75%
Less than 500 employees, used to pay for expenses had the disaster not happened. Collateral limits changed.
Employee Retension Tax Credit
Not available if use the PPP loan Credit against withholding Payroll Tax Delay
Not available if use the PPP loan
Delay a portion Social Security and Medicare taxes.
About The Author: Tierney Stigall
Tierney is the principal accountant at DB Accounting & Tax Services. She has over 20 years experience handling tax and accounting for businesses of all sizes.
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