Lee Cantrell, AIF®, explains some key highlights from the Coronavirus Aid, Relief, and Economic Security Act (CARES).
Please don't hesitate to reach out to us and discuss your options to utilize this government aid package as a business owner.
The Paycheck Protection Program offers loans to small businesses that are fully guaranteed by the federal government. The loans are designed to cover eight weeks of operating costs during the crisis – so that means covering payroll and the costs of rent, utilities, mortgage interest, etc. These loans may be fully forgiven so long as the business complies with the federal government rules.
Employee Retention Tax Credit A refundable payroll tax credit up to $5,000/employee. But in order to qualify, a business must have closed completely/partially, or revenues had to have declined by more than 50% relative to the same time last year.
Sick and Family Leave Tax Credits Credits for sick and family leave costs for businesses with fewer than 500 employees. Businesses are eligible to receive refundable tax credits as are businesses with no employees (sole proprietors).
Deferral of Social Security Taxes Businesses can defer payment of the employer share of Social Security tax incurred from March 27th through December 31st, but the deferred taxes must be paid over two years.