PPP loans under the CARES Act are being audited by the SBA. All PPP loans over $2 million will be audited, and many more under $2 million will be audited as well. Applying for forgiveness of a PPP loan increases the likelihood of an audit.
An audit or “review” by SBA of a borrower and its PPP loan can result in an SBA determination that the borrower (1) was ineligible for a PPP loan; (2) was ineligible for the PPP loan amount received or used the PPP loan proceeds for unauthorized uses; (3) is ineligible for PPP loan forgiveness in the amount determined by the lender in its full or partial ...
In March, Congress passed the Coronavirus, Aid, Relief and Economic Security Act (“CARES Act”) to aid businesses and individuals. One CARES Act relief provision offered the deferral of certain payroll taxes. In particular, Section 2302 provides that employers may defer the deposit and payment of the employer’s portion of the Social Security taxes arising between March 27, 2020, and December 31, 2020 (the “Employer Deferral”). Any deferred taxes are repaid over the following 2-year period. The CARES Act failed to offer similar deferrals for the employee portion of ...
Many South Carolinians who have been furloughed or laid-off from work have received unemployment benefits from the South Carolina Department of Workforce. These benefits have been increased under the federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act), and where an individual can be paid up to $926/week for 33 weeks.
The CARES Act significantly expanded unemployment benefits for workers impacted by the Coronavirus (COVID-19) outbreak. For unemployed workers, the CARES Act funds the following additional benefits under South Carolina’s unemployment ...
The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) provides individuals with a stimulus payment of $1,200 per adult, plus $500 for each qualifying child age 16 and under (subject to phase-outs for higher income individuals). The stimulus payment provided by the CARES Act is structured as a refundable federal income tax credit.
South Carolina does not allow individuals to deduct federal income taxes in arriving at South Carolina taxable income. Consequently, federal tax credits generally have no impact on an individual’s South Carolina income tax ...
Presently, many human resource departments are scrambling to address issues raised by the passage of the Families First Coronavirus Response Act (the “FFCRA”) and the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act” collectively with the FFCRA hereinafter referred to as the “COVID-19 Legislation”). While many of the provisions of the COVID-19 Legislation are straightforward, the COVID-19 Legislation contains provisions that implicate a number of employee benefit requirements that could get overlooked. This article reviews two disclosure ...
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 ...
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 ...
On March 27, 2020 the the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act or Act), H.R. 748, became law. The Act provides eligible employers a tax credit against employment taxes equal to 50% of qualified wages. The credit is determined quarterly and effectively capped at $5,000 per eligible employee.
Eligible employers include any employer that was carrying on a trade or business in 2020 whose operations were impacted by the Coronavirus crisis. Two tests are used to determine whether a business was impacted by the Coronavirus. The tests are applied quarterly. The ...
The CARES Act, enacted on March 27, 2020, includes several provisions that change the rules for employee benefit plans, ranging from providing greater access to retirement benefits and HSA funds to offering funding relief to single-employer pension plans.
The CARES Act adds a new tax-favored withdrawal option that applies to the following types of retirement plans: IRAs, qualified plans (e.g., profit sharing and 401(k) plans), 403(a) and (b) plans, and 457(b) governmental plans. The withdrawal is permitted only if it is a Coronavirus-related distribution, which is defined as a ...
The COVID-19 or Coronavirus has disrupted demand in many industries and is wreaking havoc on budgets and cash flow projections. On March 27, 2020 the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act or Act), H.R. 748, became law. The CARES Act seeks to incentivize employers to retain their employees and to provide enhanced unemployment benefits for employees who are not retained. The CARES Act contains a number of tax related provisions to assist employers.
Paycheck Protection Program
The Act establishes a forgivable loan program (the Paycheck Protection Program ...
On March 18, 2020 President Trump signed the Families First Coronavirus Response Act (Act) to provide relief to employees and small and midsize businesses. The Act is effective until December 31, 2020. The Act requires covered employers, except those with fewer than 50 employees who receive an exemption,[1] to provide the following:
- Two weeks (up to 80 hours) of paid sick time at the employee’s regular rate of pay where the employee is unable to work because the employee is quarantined (pursuant to Federal, State, or local government order or advice of a health care provider), and/or ...