Need to Know COVID Relief & PPP Deductions
COVID Relief Stimulus Bill:
This week a new stimulus bill was passed for $900 billion dollars. We want to ensure our clients received the newest information regarding Massachusetts Federal Laws. The COVID Relief Stimulus bill provides answers to federal Emergency Paid Sick Leave (EPSL) and Emergency Family and Medical Leave (EFMLA) is extended to March 31. However, this is an option not a requirement. After December 31, offering EPSL and EFMLA is option for employers. The tax credit extension will be available for leaves taken through March 31, 2021.
Additional Benefits revived:
$600 for individual payments with an income at or below $75,000 and $600 per dependent child
$300 weekly supplement unemployment benefit, through March 14, 2021
Extension of Pandemic Unemployment Assistance and Pandemic Emergency Unemployment Compensation through March 14, 2021
Reopening and refunding of the Paycheck Protection Program (contact your financial or tax advisor for additional information)
Our partner, The Hartford released helpful information for all small businesses. Please visit "The New Stimulus Act 15 Changes That will Impact Your Small Business."
We will continue to provide our clients with helpful tips to keep running your businesses smoothly.
PPP Deduction Expense Rules Explained
In case you missed the most recent clarification of the PPP Loan expenses for your tax information, here is the overview.
When businesses received the PPP Loan initially they were advised they could utilize the funds for eligible expenses such as utilities, rent or mortgage interest. Additionally guidance was released by Internal Revenue Service (IRS) stating expenses paid from PPP proceeds that was forgiven would not be deductible. Many businesses are concerned with the timing of when their loans could be approved for forgiveness.
For more information regarding PPP Deduction Expenses, please visit The Treasury and IRS.