The last two months have been challenging. So much has changed. Businesses are starting to reopen and people are cautiously returning to workplaces and public areas. SFW Partners, LLC would like to update you on a few items affecting many of our clients.
Payroll Protection Program (PPP) Loans
Despite a complicated and confusing application process, billions of dollars have been issued to small businesses in the form of PPP loans. Now that funds have been deposited, the focus has turned to maximizing the amount that can be forgiven.
Part or all of the PPP loan may be forgiven. The US Treasury recently issued the application that will be used to request forgiveness. Although the instructions to the application cleared up a few questions, it also raised new questions and left others unanswered. Additional guidance is expected to be issued over the next few weeks.
Forgiveness is dependent upon many factors, most importantly the spending of funds for eligible expenses during an eight week period following receipt of loan proceeds. Forgiveness is also based on the employer keeping or rehiring employees and maintaining salary and hourly wage levels. The amount forgiven will be reduced if full-time equivalent headcounts decline or if salaries and wages decrease and are not restored by June 30, 2020.
The calculation of amounts eligible for forgiveness is complicated. It is essential that you understand all of the components in order to correctly calculate the amount and maximize your forgiveness. Please contact us so that we can assist you to maximize the amount forgiven.
Additional Stimulus Plan
Congress is working on the next coronavirus stimulus plan, including additional support for individuals and businesses. Details are limited and change often. If it passes and becomes law, we will provide you with information necessary to help you understand the provisions and how you can benefit from them.
Return Due Dates
As we have announced before, the due date for many returns and payments with deadlines (including extended deadlines) falling on or after April 1, 2020 and before July 15, 2020 are now due July 15, 2020. This includes the filing of 2019 returns, the payment of 2019 tax and the payment of first and second quarter 2020 estimated tax payments.
If you have not yet submitted your information to us to prepare your 2019 returns, please provide it no later than June 15, 2020. If we receive your information after June 15, we may not be able to complete your return by the filing deadline and will need to file an extension for you.
SFW Partners Office
Our office is currently open during normal office hours (Monday through Friday from 8am to 5pm). In compliance with CDC guidelines, we have reduced the number of team members in our office each day. We are working effectively from our office and remotely, so rest assured that we will continue to serve and support you.
To help keep our team and our clients safe, we recommend that you provide your information to us through the mail or electronically. If this is not possible, you may bring your information to our office. We are not meeting with clients at this time. Instead, we would be happy to schedule a teleconference or virtual meeting with you.
So much has changed over the last two months. However, our dedication to serve and support you has not changed. We value your business and appreciate your continued trust in our firm. Please let us know if we can assist. You can contact your regular SFW representatives via email or phone. You can also call our receptionist at 314-569-3333 or email her at SFW@sfwpartnersllc.com and she will put you in contact with the right person.