PPP2 APPLICATION DEADLINE EXTENDED TO MAY 31

On March 25, 2021, the PPP Extension Act of 2021 was passed by the Senate, sending the legislation to President Joe Biden for his signature, just days before the Paycheck Protection Program application cycle was set to expire. The Bill extends the PPP2 application cycle to May 31, 2021 and also provides an additional 30…

TAX DAY FOR INDIVIDUALS EXTENDED TO MAY 17th

On March 17, 2021, the IRS announced that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021 to May 17, 2021. Individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May…

PRACTICAL MATTERS: FAQS For Plan Sponsors and Employees on CARES Act Relief

The Coronavirus Aid, Relief and Economic Security (CARES) Act was a rapid response by the federal government to help businesses and employees cope with the economic issues caused by the pandemic. Many aspects of the wide-range law make significant changes affecting employer-sponsored retirement plans and their participants. Since Congress passed the CARES Act in March…

The Long-Term Impact of CARES Act Loans & Distributions on Retirement Savings

The Coronavirus Aid, Relief and Economic Security (CARES) Act allowed plan sponsors to relax loan and distribution rules in 2020, giving participants greater access to funds during the pandemic. These provisions were implemented to provide relief as many employees do not have adequate short-term savings. Employee Benefit Research Institute (EBRI) has found that only one…

Second Draw PPP Loans & SVO Grants

PPP Loans and Shuttered Venue Operators (SVO) Grants PPP – Round Two In accordance with the recently passed Economic Aid Act, the Small Business Association (SBA) resumed the Paycheck Protection Program (PPP) on January 11, 2021, First and Second Draw PPP loans are now available for application. First Draw PPP Loans are available for those…

New Stimulus Package Passed December 21, 2020

The U.S. House of Representatives and U.S. Senate passed the Consolidated Appropriations Act, 2021 (bill), a massive tax, funding, and spending bill that contains a nearly $900 billion coronavirus aid package. The emergency coronavirus relief package aims to bolster the economy, provide relief to small businesses and the unemployed, deliver checks to individuals and provide…

IRS Updates FAQs on CARES ACT Employee Retention Credits and Payroll Tax Deferrals

The IRS recently updated its frequently asked questions (FAQs) on the Employee Retention Credit (ERC) and payroll tax deferrals under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136). These provisions encourage businesses to keep employees on their payroll during the COVID-19 global pandemic. Although the FAQs cannot be relied upon as legal…

5 Things PPP Borrowers Need To Do Now

For small and midsize businesses struggling because of the coronavirus, the Paycheck Protection Program (PPP), included as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, provided much-needed funding to cover necessary expenses. One of the chief benefits of the loans made through this program is the potential for the loans to be…

How Furloughs and Layoffs May Affect Company Retirement Plans

The coronavirus pandemic has forced many employers to implement some form of workforce reduction to continue operating. While furloughs and layoffs have a significant and immediate impact on a company’s operations, plan sponsors also need to understand the longer-term effects workforce reductions have on participants’ benefits and retirement accounts. Over the next several months, employers…

​More Flexibility for Paycheck Protection Program Loan Forgiveness and Payroll Tax Deferral

The Paycheck Protection Program Flexibility Act of 2020 (H.R. 7010) (PPP Flexibility Act), enacted on June 5, 2020, makes welcome changes to the forgiveness rules for Paycheck Protection Program (PPP) loans made to small businesses in response to the novel coronavirus global pandemic (COVID-19). The PPP Flexibility Act greatly increases the likelihood that a large percentage…