As Coronavirus has sent so many of our businesses into paralysis, we can’t help but wonder “what can I be doing smarter while staying compliant”, how can I support myself, my team, my customers and suppliers. How can I serve as a beacon of light to others when I too am scrambling to stay on top of what’s being thrown at me. How do I leverage what is available to me?
In this world of information overload, it is not unusual to wake up to an inbox bursting at the seams with opinions and facts of all that’s available out there, but not know where to start.
Here are 3 key ways we have speed learned lately that we’d like to share with you on how small businesses can get help:
Small business loans and grants
Highly accessible small business loans are now available due to philanthropic organizations and also as a result of The CARES act.
1. The Economic Injury Disaster Loan Program (EIDL) is one offering grants of up to $10,000 for immediate relief to businesses with a substantial impact on revenue in comparison with same period of 2019. Business owners Apply directly for the Loan Advance here.
2. The Payroll Protection Program (PPP) offers loans up to $10m to small businesses who need support to continue employing people through the crisis. Please note, the rules changed this week, so watch out for anything specifying requirements that were written prior to April 2. A large portion of the loan can be forgivable if you retain your teams and spend 75% of the loan on payroll, rent/mortgage and utilities. One needs to apply through a lender and as of writing not all banks were able to offer application processes. Here is a list of those who are reported to be doing so. Here’s a list of the top 100 most active SBA 7(a) lenders.
Withhold payroll taxes immediately
An increasing number of state governments have announced their own relief measures for businesses in the form of filing extensions, forgiveness and financing plans for tax relief via payroll taxes. Here, one of our favorite payroll providers offers up a handy list of the rules it’s clarifying for clients in each state. Jeff Nowak, an attorney with Littler in Chicago blogged how employers will be able “to draw funds from the payroll and income tax they withhold from or pay on behalf of all employees and not just those to whom they must provide paid leave under the new statute.”
Relief with Costs of The New Family First Relief Act Leaves
Finally, word is out on exactly how to receive immediate relief from the Federal govt. for payment of emergency leaves to employees, that businesses of under 500 employees are required to pay under certain conditions. Guidance has now been received on how to retain and access funds that they would otherwise pay to the IRS in taxes. If the employer has to pay out more than its payroll tax liability, then file immediately for a refund on IRS forms about to be issued see here. claiming immediate payment from IRS in lieu of payment for FFCRA leaves see here. Eligible employers can now use Form 7200, Advance Payment of Employer Credits Due to COVID-19, to request an advance payment of tax credits. Employers must retain records supporting each employee’s leave to substantiate the claim for receiving payment of the advance credit.
Call Peoplescape with any questions or advisory requirements. We are entrepreneur-minded HR experts here to support and partner with our fellow businesses to share what we know – on a complimentary basis. We have your back! 323-900-0511 [email protected]