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Marvin & Co. Blog
Coronavirus Resources and Information Page Created
Marvin and Company has collected various resources for you related to the COVID-19 outbreak. Check it out below:
https://www.marvincpa.com/news-and-events/coronavirus-covid-19-information-and-resources/
SBA Issues PPP Loan Update on Forgiveness Eligibility
Now that the Paycheck Protection Program (PPP) loan application period has ended, businesses that have taken PPP loans are concerned about meeting eligibility for loan forgiveness. PPP loans are generally forgivable if a business uses at least 60% of the loan proceeds for eligible payroll costs over a covered period of eight weeks or 24 weeks, according to the period the borrower selected. Non-payroll costs also are eligible for forgiveness if they meet certain eligibility requirements.
The Small Business Association (SBA) and the U.S. Treasury issued interim final rules (IFR) in late August that provide additional guidance on eligible expenses related to PPP loan forgiveness. The SBA is responsible for administering these loans. The intent was to provide clarification and guidance on the ownership percentage that triggers the owner compensation rule for forgiveness and the eligibility limits on forgiveness for certain non-payroll costs.
This article explains recent additional guidance issued by the Small Business Administration and U.S. Treasury on expense eligibility for PPP loan forgiveness.
Payroll Tax Deferral Guidance Issued by IRS
To assist companies and workers seeking financial relief due to COVID-19, President Trump issued an Executive Order to permit companies to defer the withholding, deposit and payment of certain employee payroll taxes. The IRS issued Notice 2020-25 to provide employers with initial guidance on this payroll tax “holiday” that extends from September 1 through December 31, 2020. IRC Section 7508A enables the Treasury Secretary to use his authority to defer the payment of taxes when a federal disaster is declared.
This article explains the guidance issued on the President’s Executive Order to defer employee payroll taxes.
Addressing Missed 401(k) Plan Deadlines During COVID-19
The COVID-19 pandemic has put many extra burdens on 401(k) plan sponsors. In addition to navigating all of the uncertainty related to the economy and workplace safety, plan sponsors have had to keep an eye on regular retirement plan procedures and deadlines. Often, workplaces were shut-down for extended periods (and may still be off-limits), so the employees responsible for handling those matters might not have been able to access records or other materials necessary to ensure timely compliance. In some cases, employers may have even laid off or terminated those employees due to a sudden downturn in business.
This article details areas of 401(k) plans that may need attention.
Best Practices for Nonprofits Tackling 2021 Budgeting Challenges
With all the economic upheaval that COVID-19 has brought to 2020, budgeting for 2021 is sure to be challenging for many nonprofits. Some nonprofits cut back their services, operations and staffing during 2020, and others changed their mission to address more pressing community needs. Fundraising events often were curtailed due to social distancing; as a result, many organizations received fewer donations than usual.
While the budgeting process is often difficult for nonprofits, the pandemic makes it even harder to forecast next year’s income and expenses. As we slowly move closer to returning to what everyone hopes is “business as usual,” nonprofits should take time now to reconsider their income and expenses and recast their annual budget as needed.
This articles provides best practices for nonprofits as they tackle budgeting challenges for 2021.
CARES Act Funds for Governments
The Coronavirus Aid, Relief and Economic Security (CARES) Act enacted by Congress on March 27, established the Coronavirus Relief Fund and appropriated $150 billion to the fund for COVID-19 related expenses for states, the District of Columbia, U.S. territories, tribal governments and local governments with populations over 500,000. The allocation of $139 billion to the states was determined by a population-based formula, with states receiving a minimum of $1.25 billion, with a reduction for payments made to local governments. A total of $3 billion was reserved for the District of Columbia and U.S. territories, with allocations based on population. A total of $8 billion was reserved for tribal governments, with 60% allocated based on population and the remaining 40% based on employment and expenditure data, with a minimum payment of $100,000 to the smallest tribal governments.
This article outlines the government aid details of the CARES Act.
Home Office Deduction Rules
The IRS reminded taxpayers of the home office deduction rules during the Small Business Week and urged individuals to consider taking the home office deduction if they qualify.
This article outlines things to consider when preparing deductions for home office expenses.
4 Ways to Get Paid Faster Using QuickBooks
It’s probably one of your toughest challenges. How do you encourage customers to make payments faster?
Cash flow is a problem for so many businesses right now. Unless you sell products or services that are in high demand during the COVID-19 pandemic, you’re probably struggling to get payments from customers who are also cash-strapped. Adding a line to your invoices that says something like, “We appreciate your prompt payment” isn’t making a difference.
QuickBooks provides numerous ways for you to nudge customers who have let payments slide beyond their due dates. You don’t have to be heavy-handed about it (though you may have to be eventually on seriously delinquent accounts).
This article demonstrates four ways you can speed up your receivables.
10 Tips for Better Budgeting…
…and how QuickBooks Online can help you with the mechanics.
If you already have a budget, it’s probably been difficult for you to stick with it for the last several months. Unless you provide products and/or services that have been in great demand since the COVID-19 pandemic took hold, you’ve had to adjust your budget significantly.
Better days are ahead, though, and now is a good time to start doing some planning for 2021. While there are still likely to be uncertainties next year, creating a budget will give you a starting point. A budget increases your awareness of all of your projected income and expenses, which may make it less likely that you’ll find yourself constantly running short on funds.
Here are some ways you can make your budgeting process more effective and realistic.
Marvin University: Top Not-for-Profit Accounting and Auditing Issues Facing CPAs - September 16 at Noon
Marvin and Company, P.C. will host the next webinar in its complimentary series titled: "Top Not-for-Profit Accounting and Auditing Issues Facing CPAs" Wednesday, September 16 from noon to 1 p.m. Tom specializes in and provides a substantial amount of accounting and auditing services to public charity not-for-profit organizations, including financial statement audits, single audits, and return preparation.
