COVID-19 Resources

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.

Unemployment Insurance

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.
    • To File a Claim: https://wfc.nhes.nh.gov/auth/sso/login;jsessionid=28B0D949890D495E712F89641CD45521?execution=e1s1
  • 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).

• • https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know
  • 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.

• • https://www.irs.gov/newsroom/faqs-employee-retention-credit-under-the-cares-act

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.

Charitable Deductions

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.

Retirement Distributions

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 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. Available through June 30, 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

How to Apply for the Paycheck Protection Program (PPP):

• Review and gather the necessary information for the application
• Contact your bank or an approved lending institution to start the process. See List of Lenders above.

Application for Paycheck Protection Program (PPP) Forgiveness Loan:

• Loan Forgiveness Application & Instructions – https://home.treasury.gov/system/files/136/3245-0407-SBA-Form-3508-PPP-Forgiveness-Application.pdf 

Economic Injury Disaster Loans

Providing small businesses with working capital loans of up to $2 million that can provide essential economic support to small businesses.

• • 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.

Other SBA Assistance

• https://www.sba.gov/funding-programs/loans/coronavirus-relief-options
  • SBA Debt Relief, SBA Express Bridge Loans, Guidance for Businesses and Employers, SBA Products and Resources, Government Contracting, Local Assistance

Federal Resources

• irs.gov/coronavirus
• cdc.gov/coronavirus

State Resources – New Hampshire

• Health – https://www.nh.gov/covid19/
• Business – https://www.nfib.com/new-hampshire/
• NH Department of Revenue – revenue.nh.gov
• Main Street Relief Fund:
  • 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
• 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/
• NH List of Essential Businesses – https://www.governor.nh.gov/news-media/emergency-orders/documents/emergency-order-17.pdf

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/

Other Resources

• SCORE – https://www.score.org/

If you don’t see the information you are looking for, please feel free to contact us. We are glad to help.