The COVID-19 emergency has left many Philadelphia and New Jersey companies without revenue or means to generate cash flow. The combination of forced business closures, shelter-in-place orders, and general concern about exposure to the virus has left businesses without customers and dwindling demand.
The COVID-19 health crisis has significantly reshaped the business landscape. The convergence of forced business closures and dwindling demand for services has forced many to make difficult business decisions.
The impact of the COVID-19 emergency has had a widespread impact on individuals, families, and businesses. The implementation of forced business closures and shelter in place orders have left many companies facing surreal challenges. With limited or no opportunity to generate revenue, businesses have been forced to terminate or furlough employees leaving many without jobs and income to pay essential bills.
This is an update to our previous post published on April 3, 2020, regarding the Paycheck Protection Program (PPP). Since then, the Small Business Administration has announced that the interest rate is set at 1%, and the calculation of average payroll costs is based on gross payroll without deductions for taxes.
The CARES Act is designed to stimulate the U.S. economy through various tax credits, and one of the resources available to qualified businesses is a loan opportunity called the Paycheck Protection Program (PPP).
The bipartisan $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act is the single largest, and the most wide-ranging, potentially game-changing stimulus package ever created by the federal government.
The federal government responded with two important pieces of legislation, including the Families First Coronavirus Response Act and the Coronavirus Aid, Relief and Economic Security (CARES) Act. They both provide significant compliance changes, but more importantly, outline various tax changes, loan options, and additional assistance for independent schools.
Treasury Secretary Steven Mnuchin announced last week a 90-day extension of the filing deadline from April 15, 2020, to July 15, 2020. On March 20, 2020, the IRS released Notice 2020-18, which provides specific guidance on the extension.
The swift and decisive actions taken by both state and federal governments in light of the COVID-19 situation have had a profound impact. Many believe the economy has entered a period of contraction with a recession likely if broad financial support, including loans, grants, and other relief, is not offered.
This is the time of year when most New Jersey businesses work closely with their accountant to answer last-minute questions, provide additional documentation, and sign the needed forms to complete the corporate return.
