The Paycheck Protection Program (PPP) launched in early April with little guidance provided to both borrowers and lenders. Many businesses acted quickly to determine their maximum loan amounts and submit their applications before funds would run out. Recently, there has been scrutiny related to certain recipients of the funds. In light of this, we want to ensure you are aware of the certifications that borrowers were attesting to on their loan applications. Specifically, borrowers were representing that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the applicant”. (more…)
CPAs Talk Tech Biz
A blog for the owners, founders, and executives of privately held technology companies.
NextCARES Act - Individual Provisions
The CARES Act contains several provisions to get cash directly into the hands of taxpayers who are either currently employed or not working. These sources of cash include:
CARES Act - Business Provisions
While businesses are carefully watching their cash flow, The CARES Act contains several provisions to provide cash for immediate operating needs:
SBA Relief Program Comparison Chart
For additional information and daily updates, see:
- The Paycheck Protection Program Flexibility Act Eases PPP Forgiveness Rules
- SBA Releases Paycheck Protection Program Loan Forgiveness Application and Limited Guidance
- SBA Releases Additional Guidance Regarding Certification of “Need” for PPP Loan
- SBA Announces Retro-Active Change to Paycheck Protection Loan Program
- Paycheck Protection Program Loans for Taxpayers with Self-Employment Income
- Paycheck Protection Program and Forgivable Loans Summary
- COVID-19 and Tax Changes
COVID-19 and the Impact on Your Financial Statements
By Nick Sabbatini, CPA, Audit Manager
By now, we are all aware of the Coronavirus pandemic and the impact it is having on our lives, including the impact on businesses and the overall economy. Companies are working remotely, where possible. Disruptions to vendor and customer bases, market value declines and day-to-day changes in the global economy are also creating broad impacts to companies’ operations.
At this point, the general impacts on operations for most companies are known through media coverage and changes in our daily lives, but most of us may not be fully aware of the impact on financial reporting. We have summarized a few financial statement considerations: (more…)
Working From Home Best Practices
By Laura Mays, Director of HR & Employee Development
Due to the recent COVID-19 pandemic, working from home has very quickly become the new normal for a lot of us. For some, it’s convenient to skip the commute and jump right into a day’s work, for others, it may be a little uncomfortable and challenging to juggle a work-life balance. Here are a few tips to help keep you productive while working from a home office: (more…)
COVID-19 and Tax Changes
New Developments – 8/6/20
AICPA continues to ask Congress to include PPP deductibility in upcoming legislation and points out that denying deductions for expenses paid with PPP funds creates other possible issues such as impacting the 199A deduction, treatment of deductions and loan forgiveness if occurring in different tax years and disallowed interest expense under 163(j):
Summary of the new FAQ’s for PPP Loan Forgiveness:
New IRS Form W-4 - What Employers Need to Know
In December 2019, the Internal Revenue Service unveiled the final version of its new Form W-4, Employee’s Withholding Allowance Certificate. The new withholding form, which is mandatory for all employees hired in 2020, incorporates several major revisions and could require significant reprogramming of your company’s payroll systems. (more…)
Reclassifying Workers as Employees Under AB 5
UPDATE — The California Assembly is currently drafting Assembly Bill 1850 that seeks to clarify the rules and modify the exceptions for employee classification created by Assembly Bill 5 discussed below. Check back for further updates.
In 2018, the California Supreme Court rendered its decision in the Dynamex case that significantly altered the rules used to classify workers as employees or independent contractors. In an attempt to “simplify the rules” and “help” workers in the gig economy the California legislature passed, and the Governor signed, Assembly Bill 5 (AB 5) in 2019. The bill codified the worker classification tests used by the California Supreme Court. Prior to the passage of AB 5 many industry lobbyists were busy in Sacramento getting exceptions and special rules included in AB 5. As a result, the worker classification rules are now very complex, have many exceptions and come with significant penalties for noncompliance. (more…)