Paycheck Protection Program & Stimulus
Our CPAs at Mercer Island Accountants offer consultation services for the Paycheck Protection Program including review of loan applications and required accounting documentation. We understand the details to help your small business thrive. Your loan may likely be forgiven. Discover what is available for employer relief through the Coronavirus, Aid, Relief and Economic Security Act (CARES Act) administered by the U.S. Small Business Administration (SBA).
The Paycheck Protection Program (PPP) provides small businesses with loans up to $10 million to pay up to eight weeks of payroll and benefits with 100 percent loan forgiveness if a business sustains its pre-COVID-19 payroll levels through June 30, 2020 (U.S. Treasury Guidelines). Funds are provided in the form of loans that will be fully forgiven when used for payroll costs (60% must be used for payroll), interest on mortgages, rent, and utilities.
Coronavirus-Related Paid Leave for Workers and Tax Credits for Small and Midsize Business - The US Treasury Department, Internal Revenue Service (IRS), and the U.S. Department of Labor (Labor) announced that small and midsize employers can take advantage of refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees. This relief to employees and businesses is provided under the Families First Coronavirus Response Act.
Congress approved the second round of stimulus checks up to $1,200 for each individual and $500 for each child (under age 17). “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act), a $2 trillion stimulus package to mitigate the impact of the COVID-19 pandemic. The third stimulus payments of up to $1,400 for individuals was issued in March, 2021.
Are 2020 Taxes Due on Stimulus Payments? — Technically, the stimulus checks are an IRS advance and a 2020 “refundable tax credit”. If you have less income in 2020 than 2019 (layoffs, reduced hours or closed businesses) and your rebate payment was reduced by AGI threshold, you’ll receive a credit for the difference on your 2020 return. Contact us to determine your tax implications.
To schedule a consultation for SBA small business Paycheck Protection (PPP) loans or tax credits (via phone or Zoom), please call our office at 206-281-9444 or email Serena@mercerislandaccountants.com. Following guidance from Washington public health authorities, the U.S. Centers for Disease Control and Prevention (CDC) and the World Health Organization (WHO), Mercer Island Accountants continues to implement strategies to protect our staff and ensure continuity of service to our clients.
With so many unknowns, with anxiety at an all-time high…let us help during this uncertain and critical time as your trusted accounting partner.
Best regards for your health and safety,
Mimi Pangallo, CPA
MERCER ISLAND ACCOUNTANTS
PANGALLO & ASSOCIATES
2731 77th Ave SE, Suite 102 Mercer Island, WA 98040