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Employer Paid Leave Requirements

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2020 Estimated Tax Payment Deadlines

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Tax-Favored Withdrawals from Retirement Plans

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Small Business Loans to Cover Payroll …

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Employer Paid Leave Requirements

Filing and Payment Deadlines

2020 Estimated Tax Payment Deadlines

 

Quarterly ES Payment Due Date Changes for 2020 : 

Typically, quarterly estimated tax payments are due April 15, June 15, September 15, & January 15.

April 15, is extended and due by July 15.

June 15, September 15, & January 15 remain due on those dates.

IRA and HSA Contribution Deadlines for 2020 : 

Typically, these payments are due by April 15, 2020 for the contributions to be deductible for the 2019 tax year.

 This April 15, is extended and these payments are due by July 15.

Source: https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers

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TAX-FAVORED WITHDRAWALS FROM RETIREMENT PLANS

Potential 3 Year Indirect Rollover Period and 10% Penalty avoidance on qualifying distributions from retirement plans – H.R. 748 SECTION 2202

10% Penalty for early withdrawal {I.R.C. §72(t)} shall not apply to COVID-19 related distributions

COVID-19 related distributions are :

1) distributions not exceeding $100,000 between January 1, 2020 and before December 31, 2020

AND

2) to an individual with a SARS-Co-V-2 diagnosis for the individual, the spouse, or dependent,

OR

3) to an individual who experiences adverse financial consequences as a result of :

  1. being quarantined,
  2. being furloughed or laid off, or having work hours reduced due to such virus
  3. being unable to work due to lack of child care due to such virus
  4. closing or reducing hours of business owned by the individual due to such virus

You can choose to include this distribution in your income ratably over a three year period and it is not subject to the the 10% early distribution penalty.

Alternatively, you may contribute back the entire amount withdrawn, in one or more contributions, over the THREE year period starting with the date you received the first distribution and it will be treated as an indirect rollover of those funds if they were an IRA or as a trustee to trustee transfer if it was another eligible employer retirement plan.

 Source : H.R. 748 Section 2202, pages 157 – 167

 

 

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Paycheck Protection Program – Small Business Loans for Covering Payroll, Rent, Interest on Debt and Utilities

 Paycheck Protection Program – Small Business Section 7(a) Loans

Loans Made between February 15, 2020 and June 30, 2020

    WHO: Entity or Eligible Individual – includes sole proprietors, independent contractors and eligible self employed individuals.
    Maximum Loan: 2.5 x the Average Monthly Payroll Costs for the preceding 12 months
    Allowable uses of Loan Proceeds:

I)    Payroll Costs,

II)   Costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave and insurance premiums

III)  Employee Salaries

IV)  Payments of interest on any mortgage obligation

V)   Rent

VI)  Utilities including electric, water, gas, telephone, internet

VII) Interest on any other debt obligation that were incurred before the covered period

        Maximum Interest Rate is 4%. Prepayment penalties are waived.
        Non-recourse if it is used for the allowable uses defined above.
        Automatic 6 month deferral for those businesses in operation February 15, 2020 and with an application that is approved or pending on or after March 27, 2020.
          Source: H.R 748 Section 1102 Paycheck Protection Program, Pages 9-32
              Click on the link at the top of the page that says “Economic Injury Disaster Loan” at

          https://www.sba.gov/funding-programs

            OR
                Copy and paste this address directly in your browser:   https://covid19relief.sba.gov/#/

           

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