In response to the COVID-19 pandemic, the Internal Revenue Service and the Pension Benefit Guaranty Corporation extended many deadlines for retirement plans, discussed below.
Remedial Amendment Period Extensions
In the first set of extensions, on March 27, 2020 the IRS announced an extension of the remedial amendment period for 403(b) plans from March 31, 2020 to June 30, 2020, and also extended the remedial amendment period for preapproved defined benefit plans from April 30, 2020 to July 31, 2020. These extensions provide welcome relief to employers trying to amend plans in a new ...
One of the key benefits of a Paycheck Protection Program (PPP) loan is the ability to have all or a portion of the loan forgiven. The amount of a PPP loan that will be forgiven is based initially on the qualifying costs an employer incurs during the 8 week period following loan funding (at least 75% of which must be used for payroll costs to qualify for 100% loan forgiveness). The initial forgiveness amount is then subject to reduction under a headcount test and a salary test. The headcount test and salary test reductions, however, do not apply in certain instances when headcount and salary are ...
Payroll Protection Program (PPP) loans under the CARES Act are available not only to small business but to self-employed individuals, too. Banks began accepting PPP loan applications for self-employed individuals beginning April 10th. The Small Business Administration (SBA) has now issued helpful guidance to self-employed individuals who may apply for these PPP loans. More information about the CARES Act and PPP loans can be found at www.burr.com.
Under the new SBA guidance, an individual is eligible for a PPP loan if: (i) you were in operation on February 15, 2020; (ii) you are an ...
Due to the COVID-19 pandemic, many employers have furloughed some or all of their workforce in South Carolina. Furloughed employees may now be entitled to receive unemployment benefits, and enhanced by $600 per week by the federal government through the CARES Act.
In South Carolina, unemployment benefits paid to unemployed workers are funded by the South Carolina Unemployment Insurance Tax (UI Tax). The UI Tax – also known as South Carolina’s version of “SUTA” – is imposed on employers and paid to the South Carolina Department of Employment and Workforce (SCDEW) and which ...
One of the provisions included in the Coronavirus, Aid, Relief and Economic Security Act (CARES Act) allows an employer and self-employed individuals to defer the payment of the employer’s share of social security taxes (not Medicare taxes) or the corresponding portion of self-employment taxes. The option is available for payments that would otherwise be required to be made between March 27, 2020 and December 31, 2020. No special election is required and deferred amounts will be reported on a forthcoming revised Form 941 (future guidance will address how to report deferrals for ...
On April 13, 2020, the South Carolina Department of Revenue issued SC Information Letter #20-8 with updated guidance concerning COVID-19 related filing and payment extensions. This guidance provides:
- Filing Deadlines Extended. South Carolina tax relief to July 15, 2020, now applies to all taxpayers that have an income tax, franchise tax, or corporate license fee filing or payment deadline (originally or pursuant to a valid extension) between April 1, 2020 and July 15, 2020. Individuals (including individuals working or living outside the United States), corporations ...
The IRS issued Notice 2020-23 on April 9, 2020 and announced that the deadline for making estimated tax payments for the second quarter 2020, due June 15, 2020, has been extended to July 15, 2020. This notice supplements prior IRS guidance extending the deadline for making estimated tax payment for the first quarter of 2020 to July 15, 2020. Now, all 2020 estimated tax payments due on or before June 15th are due on July 15, 2020. Interest and penalties do not apply to these estimated tax payment extensions.
While the Coronavirus has delayed tax season by a few months, Congress’s response may have created the first ever refund season in the recently passed and much discussed relief package known as the Coronavirus Aid, Relief, and Economic Security Act, or “CARES Act” for short. While the Act employs various relief techniques, Congress’s most effective and tried-and-true relief method – amending the Internal Revenue Code (the “Code”) – may ultimately play the most significant role.
On that note, the CARES Act amends many tax-related provisions, including ...
In the late hours of March 25, 2020, the United States Senate met to vote on a third “Coronavirus” bill to provide relief to the American people. The Senate ultimately passed H.R. 748—the Coronavirus Aid, Relief, and Economic Security Act or “CARES Act.” Two days later, the House followed suit and sent the bill the President for his approval. The Act contains many stimulus provisions, even some that affect recently-amended Internal Revenue Code (“Code”) sections. This post covers an important amendment to Section 172, which governs the use of “net operating ...