Resources for Employers and Individuals during the Current Economic Crisis
Every TJT business and individual client will be impacted significantly by the 2019 novel coronavirus that causes the disease known as COVID-19. We will be a resource for you as the situation continues to develop and evolve. The team at TJT will monitor regulations and legislation in order to provide our clients with the most current and useful information.
Congress Passes Historical Disaster Recovery Legislation
On Friday, March 27, Congress passed the Coronavirus Aid, Relief and Economic Security Act which was aimed at helping millions of Americans and businesses get back on their feet after the detrimental effects of the Coronavirus. We feel that there are numerous provisions in this legislation that will assist our clients during these trying times. We are here to assist and guide you through these provisions along the way. We thank you for putting your trust in us during this time. Please utilize the resources provided below.
The SBA 7(a) – Paycheck Protection Program is designed to assist businesses affected by COVID-19. The assistance will come through banks, and we expect that most banks will participate in this program. We have closely followed the bill this past week, and although SBA guidance is pending, we do understand key objectives and in essence the information needed. We would love to help you navigate this process. Please contact William Ritter at firstname.lastname@example.org.
Business Assistance and Debt Restructuring
Assistance for small businesses via loans or other forms of assistance will be forthcoming from the Small Business Administration. However, the disaster assistance program, long-established, is set up to address localized disasters, such as hurricanes, oil spills, wildfires, etc. COVID-19 is a nationwide issue, and the SBA may not be currently staffed to handle the volume of inquiries in a timely manner. They are working to fully ramp up and improve response times. There may also be issues with the required financial statements to be provided in order to be eligible for immediate assistance.
Businesses and non-profits can apply for relief using the following form. Check the box for “economic injury” under item one of the form.
Information on other assistance can be found at the following SBA sites.
Employers and Unemployment
Many employers and their employees will be affected by the Families First Coronavirus Response Act recently passed by Congress and signed by the President. Areas of the bill that may impact our business clients are outlined in the document below.
The Frankie Lemmon Foundation has set up a fund to help laid off restaurant workers. That link to that site/application is http://frankielemmonschool.org/restaurantworkersrelieffund/.
Paid Sick & Family Leave
Congress passed legislation March 18 (to be enacted no later than April 2, 2020) that created a federal paid sick leave requirement for COVID-19 needs and expanded the Family and Medical Leave Act to include a paid leave component for employees caring for children whose schools or child care facilities were closed because of the virus outbreak. Here are some of the key provisions to consider.
Tax Implications and Tax Deferrals
For individuals, the April 15th tax filing and payment deadline for 2019 returns has been moved to July 15th>. First quarter estimate payments for 2020 are also moved to July 15th. Second quarter estimates are currently still due on June 15th, but this may change. Corporate Income tax due for 2019 as well as 2020 first quarter estimates has also been deferred until July 15th.
Underpayment of estimated tax may still apply.
North Carolina has also extended the filing and payment deadline to July 15th. However, under current state law, interest will be accruing on those payments until paid. Again, this may change pending action from the General assembly. This extension applies to individual, corporate and franchise tax filings and payments.
Currently, there is no deferment on payroll taxes. Businesses need to keep paying payroll taxes as regularly scheduled.
Sales Tax- Payments due March 15- March 31 can be deferred until April 15th. Businesses would need to include form 5500 waiver with payment.