New PPP Loans Available
On December 27, 2020, the President signed legislation to reopen the Paycheck Protection Program (PPP), with over $284B available in forgivable PPP loans. First-time borrowers must have 500 or fewer employees and meet other eligibility criteria.
In addition, second PPP loans are available to businesses that received a PPP loan previously if they have 300 or fewer employees and meet other eligibility criteria.
PPP loans are available until March 31, 2021, or until all allocated funds are disbursed.
FFCRA Update: Mandated Leave Ending, Credits Extended
The FFCRA created new paid family and paid sick leave provisions for certain reasons related to COVID-19. The COVID-related Tax Relief Act of 2020 (CTRA) extends the tax credit portion of the FFCRA for employers that voluntarily offer paid leave, but not the mandatory leave portion, through March 31, 2021. FFCRA earnings and memo codes needed for employers to claim these tax credits will be available for use through March 31, 2021.
CARES Act Employee Retention Tax Credit, Extended
The CARES Act provision for refundable tax credit against employer Social Security tax has been extended through June 30, 2021. CARES Act memo codes are applicable on qualifying wages paid through June 30, 2021.
Mike McVay - Payroll & Tax Accountant
McVay Business Services - Accounting & Tax Services Pensacola, FL
Mike McVay, Tax Accountant Blog
Certified QuickBooks ProAdvisor & Licensed Tax Accountant Pensacola, FL