As the world health community continues to monitor the COVID-19 virus, the health and safety of our team, our clients and our community are of the utmost importance. We are here to help you.
Tax Filing & Payment Deadlines
|IRS Deadline||July 15, 2020||Federal income tax filing due date is extended from April 15, 2020, to July 15, 2020. Most taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest.||More Info.|
|New Hampshire||June 15, 2020||Relief allows most taxpayers to file and pay for tax year 2019 by June 15th without penalties or interest; Safe harbors created to ease complications associated with federal tax day extension.||More Info.|
|Maine||July 15, 2020||Deadline extended for Maine income tax payments from April 15, 2020, to July 15, 2020. This Maine extension includes any final and estimated Maine income and franchise tax payments due on April 15, 2020.||More Info.|
|Massachusetts||July 15, 2020||Personal income tax returns and payments due April 15, 2020 will now be due July 15, 2020.||More Info.|
Coronavirus Aid, Relief, and Economic Security Act (CARES Act)
CARES Act is the $2 trillion stimulus bill to abate the economic challenges…contains many tax provisions, ranging from credits to temporary changes to retirement plan rules.
Increased up to 13 weeks (total 39 weeks of unemployment benefits). Provisions include an additional $600 per week payment for up to four months. Benefits also available to self-employed, independent contractors, gig workers.
- Benefits effective for unemployment, partial unemployment or inability to work that began on or after January 27, 2020. Can be paid retroactively. Ends December 31, 2020
- Additional guidance from the US Department of Labor: https://www.dol.gov/general/topic/unemployment-insurance
- New Hampshire: https://www.nhes.nh.gov/index.htm.
- Maine: https://www.maine.gov/unemployment/claimants/
- Massachusetts: https://www.mass.gov/orgs/department-of-unemployment-assistance
- To File a Claim: https://www.mass.gov/unemployment-insurance-ui-online
Economic Impact Payments / Recovery Rebate
Direct payments to Americans, based on adjusted gross income from 2019 (or 2018 if you haven’t filed your 2019 return).
- Social Security recipients do not need to file an income tax return in order to receive benefits.
Employee Retention Credit
This credit is designed to encourage eligible employers to keep employees on payroll during the COVID-19 pandemic. Employers are eligible for a 50% refundable payroll tax credit on qualified wages paid up to $10,000 during the crisis (paid after March 12, 2020 and before January 1, 2021). The maximum amount of qualified wages taken into account with respect to each employee for all calendar quarters is $10,000. The maximum credit for an Eligible Employer for qualified wages paid to any employee is $5,000. The credit can be claimed for employees who are retained but not currently working due to the crisis for firms with more than 100 employees, and for all employee wages for firms with 100 or fewer employees. Cannot be claimed, if employer receives a loan.
Employer Payroll Tax Delay
Employers (and self-employed individuals) can defer paying their portion of the Social Security payroll tax (6.2 percent) otherwise due with respect to wages accrued between March 27, 2020 and December 31, 2020. Half of the deferred amount of payroll taxes from 2020 will be due December 31, 2021, with the remaining half due December 31, 2022. Employers of all size are eligible. Cannot be used if you received an SBA loan.
Student Loan Payments By Employers
Provides tax-free status to employer-paid student loan repayment assistance programs through end of 2020 (up to $5,250 a year). The payments are also excluded from an employee’s income.
- Payments must be for a student loan incurred for the education of the employee.
- The rules for education-assistance programs under Section 127 will apply.
Student Loan Payment Suspension / Interest Waiver
All payments due on certain federal loans is suspended until September 30, 2020. (Non-defaulted, Direct Loans and FFEL loans). The Act states interest shall not accrue while the loan payments are suspended. On August 8, 2020, President Trump directed the Secretary to continue to suspend loan payments, stop collections, and waive interest on ED-held student loans until December 31, 2020.
- 5 Things to Know About Current Repayment Flexibilities and Your Federal Student Loans
- 6 Things Students Need to Know During the Coronavirus (COVID-19) Emergency
Allows non-itemizing individuals an above-the-line deduction for up to $300 in qualified charitable contributions made during the year against their AGI in 2020.
If a taxpayer, spouse or dependent is diagnosed with COVID-19, or if they have been affected by adverse financial consequences as a result of being quarantined, furloughed, laid off, had their work hours reduced due to the virus, or unable if they are unable to work because of lack of child care, individuals can withdraw as much as $100,000 from their qualified retirement plan accounts through the end of 2020 and treat them as non-taxable rollover contributions as long as the funds are repaid to the plan in the next three years. These distributions are exempt from the 10% early withdrawal penalty generally applicable to distributions made to those 59-1/2 or younger.
Additionally, the CARES Act adds a provision provides a temporary one-year waiver in required minimum distributions (RMDs) for defined contribution plans, including 410(k), 457(b) and IRAs. It appears the intent for this relief is to apply both to participants whose required beginning dates would otherwise be April 1, 2020, and to participants already receiving RMDs and scheduled to continue receiving those payments in 2020.
SBA Guidance & Loan Resources
SBA COVID-19 Disaster Assistance
SBA highlights areas in which small business owners should anticipate encountering difficulties during this time.
- General Information: https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources
The SBA is providing disaster relief measures and resources in the following areas:
Paycheck Protection Program
Federal loan program that helps businesses impacted by the coronavirus (COVID-19) to retain their workforce. Applicants are encouraged to apply early as the program has a cap and demand is likely to be high. The SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
- The Paycheck Protection Program closed August 8, 2020.
- Eligibility: Any business concern, nonprofit 501c3, veteran’s organization 501c19, or Tribal business concern that employs not more than the greater of 500 employees.
- Applications will be processed as soon as April 3, 2020 – small and medium sized businesses and sole proprietorships
- Applications will be processed as soon as April 10, 2020 – independent contractors and self-employed
- Information for Borrowers: https://home.treasury.gov/system/files/136/PPP%20Borrower%20Information%20Fact%20Sheet.pdf
- List of Lenders: https://www.sba.gov/partners/lenders/microloan-program/list-lenders
Paycheck Protection Program (PPP) Forgiveness:
- Loan Details and Forgiveness Application/Instructions – https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program#section-header-5
- FAQs – https://www.sba.gov/sites/default/files/2020-10/PPP%20–%20Loan%20Forgiveness%20FAQs%20%28October%2013%2C%202020%29.pdf
Note: The U.S. Small Business Administration (SBA) released guidance Tuesday confirming that Paycheck Protection Program (PPP) loan forgiveness applications are not due on Oct. 31.
Economic Injury Disaster Loans (EIDL)
If you are a small businesses, non-profit organization of any size, or a U.S. agricultural business with 500 or fewer employees that have suffered substantial economic injury as a result of the Coronavirus (COVID-19) pandemic, you can apply for the COVID-19 EIDL. This loan applies to all businesses based in any U.S. state, territory, or the District of Columbia. On June 15, SBA resumed accepting new Economic Injury Disaster Loan (EIDL) applications from all eligible small businesses, private non-profits and U.S. agricultural businesses. To be used for working capital and normal operating expenses.
To learn more about eligibility and apply, click here.
- Application: https://covid19relief.sba.gov/#/
- Emergency Economic Injury Grant: an emergency advance of up to $10,000 that can be issued within three days of applying for an EIDL. Requested at the time of application. (No longer available)
Other SBA Assistance
State Resources – New Hampshire
- Main Street Relief Fund 2.0
- Application period: October 19-30, 2020
- FAQs: https://www.goferr.nh.gov/new-hampshire-main-street-relief-fund-20-frequently-asked-questions
- Application: https://nhpublichealth.force.com/nhgoferr/CORE_Solicitation_Login_Page?SolicitationId=a0ht000000AHnG2AAL
- More information: https://www.goferr.nh.gov/covid-expenditures/main-street-relief-fund?utm_medium=email&utm_source=govdelivery
- Main Street Relief Fund:
- Application period: June 5-12, 2020
- About the Fund: https://www.goferr.nh.gov/covid-expenditures/main-street-relief-fund
- Application: https://new-hampshire.secure.force.com/support/GOV_GOFERR_Business_Survey
- NH Nonprofit Emergency Relief Fund:
- Application period: June 11-25, 2020
- About the Fund: https://www.goferr.nh.gov/covid-expenditures/nh-nonprofit-grants
- Self-Employed Livelihood Fund:
- Application period: July 6-17, 2020
- About the Fund: https://www.goferr.nh.gov/covid-expenditures/new-hampshire-self-employed-livelihood-fund-self/new-hampshire-self-employed
- Application: https://gtc.revenue.nh.gov/TAP/SELF/_/
- FAQs: https://www.goferr.nh.gov/covid-expenditures/new-hampshire-self-employed-livelihood-fund-self/new-hampshire-self-employed
- GAP Fund:
- Application period: July 21-August 4, 2020
- About the Fund: https://www.goferr.nh.gov/covid-expenditures/new-hampshire-gap-fund
- Application: https://nhpublichealth.force.com/nhgoferr/PROPOSAL_CORE_Listing_Page
- State of New Hampshire Governor’s Office: https://www.goferr.nh.gov/
- Health – https://www.nh.gov/covid19/
- Business – https://www.nfib.com/new-hampshire/
- NH Department of Revenue – revenue.nh.gov
- Small Business Support – https://www.nheconomy.com/
- NH Small Business Development Center – https://www.nhsbdc.org/covid-19-assistance
- COVID-19 Business Resources – https://businesshelp.nheconomy.com/hc/en-us
- NH Center for Nonprofits – https://www.nhnonprofits.org/page/coronavirus-covid-19-resources-nonprofits
- Employment Security – https://www.nhes.nh.gov/
- NH Department of Business and Economic Affairs – https://www.nheconomy.com/covid19
- Business & Industry Association (NH’s statewide Chamber of Commerce) – https://www.biaofnh.com/
State Resources – Massachusetts
- Unemployment Assistance – https://www.mass.gov/orgs/department-of-unemployment-assistance
- MA Small Business Recovery Loan Fund – https://www.mass.gov/info-details/covid-19-resources-and-guidance-for-businesses#small-business-recovery-loan-fund-
- MA Nonprofit Network – http://massnonprofitnet.org/nonprofit-resources/coronavirus-massachusetts-nonprofits/#philgovt
State Resources – Maine
- Employment Services – https://www.maine.gov/labor/bes/index.shtml
- ME Small Business Development Center Network – https://www.mainesbdc.org/mitigate-coronavirus-impact-on-your-business/
State Resources – Vermont
- Unemployment Insurance Application: https://vermont.force.com/DOLClaim/s/
- Vermont Small Business Development Center – https://www.vtsbdc.org/coronavirus/
- SCORE – https://www.score.org/