So where are we now?
Last month, I gave you a list of resources to help you and your business through COVID-19. This month, I’m going to post some updates to those programs along with what your business should be doing right now.
Tax returns
For starters, 2019 tax returns were already due on July 15. If you are one of my bookkeeping clients, your 2019 bookkeeping was done months ago so you should have had no problem getting your tax return done. If you are not one of my clients, now is as good a time as any to get to work on this year’s books.
Unemployment
If you are receiving pandemic unemployment assistance in Arkansas, the work search requirement returned on June 28, 2020. For traditional employees, this means you must make contact with potential employers a certain number of times per week. The number of times varies based on your geographical location.
If you are self-employed, you “must be engaged in activities designed to resume their usual self-employment, rather than making job contacts. Self-employed PUA claimants should enter the number of days on which they were engaged in activities designed to resume their usual self- employment,” according to the state’s recent press release.
PPP loans
For everyone who received a Paycheck Protection Program (PPP) loan, there were major changes. The application deadline has been extended until August 8, 2020. If you still need help maintaining payroll, don’t hesitate to apply. They are available for both W-2 employers and self-employed people. You can use them on payroll, mortgage interest or rent, and utilities.
PPP loan terms have also been changed. You now have 24 weeks instead of 8 in which to spend the money. You also only have to spend 60 percent on payroll instead of 75 percent for the loan to be forgiven. Additionally, the payback period for loans made after June 5 is now five years instead of two.
Speaking of forgiveness, the PPP loan forgiveness applications have also been published. There is now a simplified, EZ form for businesses with simpler payrolls. (For example, single owner S Corporations) This form is shorter and doesn’t require as many calculations as the regular form. Your lender can tell you which form you should complete. One thing to note is that there are still several unanswered questions regarding the details of forgiveness so many lenders are awaiting further guidance before accepting the applications.
So what should you be doing right now?
Continue to maintain very good records of all PPP or other SBA loan expenditures. Keep pay stubs, payroll reports, quarterly payroll reports for the IRS, and other payroll-related documentation.
Continue looking for ways to serve people through your business. This may require your business to pivot if you can’t serve them in your original way. But it might just open up other opportunities you didn't realize were available.
Continue keeping good monthly records of all your finances. If you need help with this, send me a message and let’s talk!