The Cares Act includes new distribution options offered in retirement plans to individuals impacted by the virus. Eligible individuals may take advantage of these temporary distribution options (1) coronavirus-related distributions and (2) coronavirus-related plan loans. Coronavirus-Related Distributions Qualifying individuals may take up to a $100,000 distribution from their qualified retirement accounts from January 01, 2020, to December…
On March 27, The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed and signed into law to provide economic relief to businesses and individuals impacted by COVID-19. It includes several significant changes to tax law, below is a summary of key provisions that impact businesses. 1. Modifications for Net Operating Losses A net…
Four Events can trigger a reduction in loan forgiveness: Reduction Based on Use of Funds Reduction Based on Employee Headcount Reduction Based on Employee Payroll Reduction Based on Advance Payment #1 Reduction Based on Use of Funds At least 75% of the loan proceeds must be used on payroll costs. Borrowers may only spend only…
Millions of U.S. businesses impacted by COVID-19 have obtained funding from the Small Business Administration (SBA) loan programs that were funded and expanded by Coronavirus Aid, Relief, and Economic Security (CARES) Act. Many jumped at the opportunity to get forgivable Paycheck Protection Program loans and grants from the Economic Injury Disaster Loan Program. Due to…