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SBA Publishes Clarification Regarding the Modification of Promissory Notes for PPP Loans

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The SBA published an update regarding the extension of the deferral period under the Paycheck Protection Program Flexibility Act of 2020.

The Flexibility Act extended the deferral period for borrower payments of principal, interest, and fees on all PPP loans to the date that the SBA remits the borrower’s loan forgiveness amount to the lender. Or, in the case of when the borrower does not apply for loan forgiveness, 10 months after the end of the borrower’s loan forgiveness covered period. Previously, the deferral period could end after six months.

Clarification was requested to know if lenders and borrowers are required to modify promissory notes used for PPP loans to reflect the extended deferral period.

The SBA stated “the extension of the deferral period under the Flexibility Act automatically applies to all PPP loans. Lenders are required to give immediate effect to the statutory extension and should notify borrowers of the change to the deferral period. SBA does not require a formal modification to the promissory note. A modification of a promissory note to reflect the required statutory deferral period under the Flexibility Act will have no effect on the SBA’s guarantee of a PPP loan.”

To read the Paycheck Protection Program Loans Frequently Asked Questions updated by the SBA on October 7, 2020, please click here.

If you are in the process of completing the PPP forgiveness application, need assistance completing the application, or have questions pertaining to any of the programs you are participating in due to the COVID-19 pandemic, please know our team is available to assist.

DISCLAIMER: The WM Daily Update COVID-19, COVID-19 Business Resources and COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.

CARES ACT: New Ways to Deduct Charitable Contributions on Your Tax Returns

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The Coronavirus Aid, Relief, and Economic Security (CARES) Act increased the incentives of making charitable contributions to various non-profit organizations. You or your business may qualify for these new deductions.

Effective for 2020 tax returns, individuals do not have to itemize in order to take charitable contribution deductions. Individuals taking the standard deduction may qualify for an additional benefit of making cash donations to qualifying non-profit organizations. The deduction could be up to $300. Qualified non-profit organizations include churches, educational facilities with curriculums and regular attendance of students, some organizations with significant support from the government, and medical facilities. 

For the individuals that itemize, under the CARES Act, there is now no limit to the deductions you can take for charitable contributions. Previously, you could only deduct up to a maximum of 60% of your adjusted gross income (AGI) via charitable contributions. But under the new guidelines, 100% of your donation would now be tax deductible. For example, if your taxable income is $200,000 in 2020, and you give away $200,000 to qualified organizations in 2020, you won’t have to pay taxes on your income. An important exception to this rule is donations made to private foundations and donor advised funds still fall under the old rules of 60% of AGI.

C Corporations’ deductions for charitable contributions are now eligible for up to 25% of taxable income which is effective for 2020. In prior years, corporations could only deduct 10%.

In addition, Congress introduced pending legislation entitled “Universal Giving Pandemic Response Act” (S. 4032) which would further increase cash charitable contributions deduction up to 33% of the standard deduction. This bill would allow taxpayers who do not otherwise itemize their tax deductions to deduct from their gross income charitable contributions made in 2019 and 2020. Congress has not passed this bill yet. We will inform you of any updates if this legislation becomes law. 

Note that sufficient documentation for any charitable contributions should be maintained to substantiate any deductions on your tax returns. 

DISCLAIMER: The WM Daily Update COVID-19, COVID-19 Business Resources and COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.

PPP Loan Forgiveness – Additional Guidance Issued

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Additional Guidance for Owner-Employees and Non-Payroll costs

The U.S. Small Business Administration (SBA) and Treasury issued an interim final rule addressing Paycheck Protection Program forgiveness issues related to owner-employee compensation and the eligibility of nonpayroll costs.

Owner – Employees

As provided in previous rules, compensation for owners of an S Corporation or C Corporation cannot exceed the lesser of $20,833, or 20.833% of their 2019 compensation, or the lesser of $15,385 or 15.385% of 2019 compensation if the borrower elects to use an 8- week Covered Period. The interim final rule establishes that owner-employees with less than a 5% stake in a C or S corporation are exempted from the PPP owner-employee compensation rule for determining the amount of their compensation for loan forgiveness.

The new IFR makes it clear that individual shareholders owning less than 5% of the compensation paid to shareholders owning less than 5% can be treated just like any other compensation and qualify for forgiveness for up to $46,154 of compensation if a 24-week period is elected. The exemption’s intent is to cover owner-employees who have no meaningful ability to influence decisions over how loan proceeds are allocated.

Expenses related to sub-lease or home office

Although borrowers might expect to capture all rent, mortgage interest or utility expenses when calculating its forgiveness amount, they must be careful to take into the account the portion of such expenses that are attributable to a tenant or subtenant or to household expense for a home-based business. The IFR provides four examples that explain this new rule:

Example 1:  A borrower rents an office building for $10,000 per month and subleases out a portion of the space to other businesses for $2,500 per month. Only $7,500 per month is eligible for loan forgiveness.

Example 2:  A borrower has a mortgage on an office building it operates out of, and it leases out a portion of the space to other businesses. The portion of mortgage interest that is eligible for loan forgiveness is limited to the percent share of the fair market value (FMV) of the space that is not leased out to other businesses. As an illustration, if the leased space represents 25% of the FMV of the office building, then the borrower may only claim forgiveness on 75% of the mortgage interest.

Example 3:  A borrower shares a rented space with another business. When determining the amount that is eligible for loan forgiveness, the borrower must prorate rent and utility payments in the same manner as on the borrower’s 2019 tax filings, or if a new business, the borrower’s expected 2020 tax filings.

Example 4:  A borrower works out of his or her home. When determining the amount of nonpayroll costs that are eligible for loan forgiveness, the borrower may include only the share of covered expenses that were deductible on the borrower’s 2019 tax filings, or if a new business, the borrower’s expected 2020 tax filings.

Borrowers must be careful to take into account the portion of such expenses that are attributable to a tenant or subtenant.

Related Party Rent Payments

The IFRs provide that mortgage interest payments to a related party are not eligible for loan forgiveness. 

As a result of the above, borrowers who own their building in a separate entity free and clear with no mortgage will not receive credit towards forgiveness for rent paid to the related entity. The CARES Act does not provide definition of “related party” and the IFR describes “any ownership in common between the business and property owner is a related party”. The limitation applies even if an individual owns just 1% of the entity receiving rent payments. 

We will provide updates as the SBA continues to change the rules and issue more guidance on loan forgiveness.

If you have questions about this or other topics, please know we are available to speak by phone at 215-675-8364.

DISCLAIMER: The WM Daily Update COVID-19, COVID-19 Business Resources and COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.

Telecommuting and Income & State Tax Nexus

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We have received updated information regarding the current status of income and sales tax nexus. For your convenience, below are details for states that we believe will be most relevant. If you have questions about a state that is not listed below, please feel free to reach out to us as your earliest convenience.

Delaware:

No income tax guidance (there is no sales tax in DE)

Florida:

No sales tax guidance (there is no income tax in FL)

New Jersey: 

  • In the event that employees are working from home solely as a result of closures due to the coronavirus outbreak and/or the employer’s social distancing policy, no threshold will be considered to have been met.
  • As long as the out-of-state seller did not maintain any physical presence other than employees working from home in New Jersey and is below the economic thresholds the Division will not consider the out-of-state seller to have nexus for sales tax purposes during this time period.

New York:

No guidance has been issued yet. We will continue to follow.

Pennsylvania:

  • The agency will not assert corporate income tax nexus solely on the basis of “COVID19 causing people to temporarily work from home as a matter of safety and public health,” for telecommuting “occurring during the duration of this emergency” (applies to both income tax and sales tax)

Tennessee:

  • The Tennessee Department of Revenue replied that it “does not have a developed position” on the corporate income tax nexus implications of employees temporarily telecommuting due to COVID-19 and “has not received any questions about it from taxpayers.” The agency indicated that it “anticipates continuing to update its COVID-19 related guidance available on its webpage as questions arise (applies to both income tax and sales tax)

DISCLAIMER: The WM Daily Update COVID-19, COVID-19 Business Resources and COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.

Additional Articles by Wouch Maloney


SBA Publishes Clarification Regarding the Modification of Promissory Notes for PPP Loans

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The SBA published an update regarding the extension of the deferral period under the Paycheck Protection Program Flexibility Act of 2020.

The Flexibility Act extended the deferral period for borrower payments of principal, interest, and fees on all PPP loans to the date that the SBA remits the borrower’s loan forgiveness amount to the lender. Or, in the case of when the borrower does not apply for loan forgiveness, 10 months after the end of the borrower’s loan forgiveness covered period. Previously, the deferral period could end after six months.

Clarification was requested to know if lenders and borrowers are required to modify promissory notes used for PPP loans to reflect the extended deferral period.

The SBA stated “the extension of the deferral period under the Flexibility Act automatically applies to all PPP loans. Lenders are required to give immediate effect to the statutory extension and should notify borrowers of the change to the deferral period. SBA does not require a formal modification to the promissory note. A modification of a promissory note to reflect the required statutory deferral period under the Flexibility Act will have no effect on the SBA’s guarantee of a PPP loan.”

To read the Paycheck Protection Program Loans Frequently Asked Questions updated by the SBA on October 7, 2020, please click here.

If you are in the process of completing the PPP forgiveness application, need assistance completing the application, or have questions pertaining to any of the programs you are participating in due to the COVID-19 pandemic, please know our team is available to assist.

DISCLAIMER: The WM Daily Update COVID-19, COVID-19 Business Resources and COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.

CARES ACT: New Ways to Deduct Charitable Contributions on Your Tax Returns

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The Coronavirus Aid, Relief, and Economic Security (CARES) Act increased the incentives of making charitable contributions to various non-profit organizations. You or your business may qualify for these new deductions.

Effective for 2020 tax returns, individuals do not have to itemize in order to take charitable contribution deductions. Individuals taking the standard deduction may qualify for an additional benefit of making cash donations to qualifying non-profit organizations. The deduction could be up to $300. Qualified non-profit organizations include churches, educational facilities with curriculums and regular attendance of students, some organizations with significant support from the government, and medical facilities. 

For the individuals that itemize, under the CARES Act, there is now no limit to the deductions you can take for charitable contributions. Previously, you could only deduct up to a maximum of 60% of your adjusted gross income (AGI) via charitable contributions. But under the new guidelines, 100% of your donation would now be tax deductible. For example, if your taxable income is $200,000 in 2020, and you give away $200,000 to qualified organizations in 2020, you won’t have to pay taxes on your income. An important exception to this rule is donations made to private foundations and donor advised funds still fall under the old rules of 60% of AGI.

C Corporations’ deductions for charitable contributions are now eligible for up to 25% of taxable income which is effective for 2020. In prior years, corporations could only deduct 10%.

In addition, Congress introduced pending legislation entitled “Universal Giving Pandemic Response Act” (S. 4032) which would further increase cash charitable contributions deduction up to 33% of the standard deduction. This bill would allow taxpayers who do not otherwise itemize their tax deductions to deduct from their gross income charitable contributions made in 2019 and 2020. Congress has not passed this bill yet. We will inform you of any updates if this legislation becomes law. 

Note that sufficient documentation for any charitable contributions should be maintained to substantiate any deductions on your tax returns. 

DISCLAIMER: The WM Daily Update COVID-19, COVID-19 Business Resources and COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.

PPP Loan Forgiveness – Additional Guidance Issued

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Additional Guidance for Owner-Employees and Non-Payroll costs

The U.S. Small Business Administration (SBA) and Treasury issued an interim final rule addressing Paycheck Protection Program forgiveness issues related to owner-employee compensation and the eligibility of nonpayroll costs.

Owner – Employees

As provided in previous rules, compensation for owners of an S Corporation or C Corporation cannot exceed the lesser of $20,833, or 20.833% of their 2019 compensation, or the lesser of $15,385 or 15.385% of 2019 compensation if the borrower elects to use an 8- week Covered Period. The interim final rule establishes that owner-employees with less than a 5% stake in a C or S corporation are exempted from the PPP owner-employee compensation rule for determining the amount of their compensation for loan forgiveness.

The new IFR makes it clear that individual shareholders owning less than 5% of the compensation paid to shareholders owning less than 5% can be treated just like any other compensation and qualify for forgiveness for up to $46,154 of compensation if a 24-week period is elected. The exemption’s intent is to cover owner-employees who have no meaningful ability to influence decisions over how loan proceeds are allocated.

Expenses related to sub-lease or home office

Although borrowers might expect to capture all rent, mortgage interest or utility expenses when calculating its forgiveness amount, they must be careful to take into the account the portion of such expenses that are attributable to a tenant or subtenant or to household expense for a home-based business. The IFR provides four examples that explain this new rule:

Example 1:  A borrower rents an office building for $10,000 per month and subleases out a portion of the space to other businesses for $2,500 per month. Only $7,500 per month is eligible for loan forgiveness.

Example 2:  A borrower has a mortgage on an office building it operates out of, and it leases out a portion of the space to other businesses. The portion of mortgage interest that is eligible for loan forgiveness is limited to the percent share of the fair market value (FMV) of the space that is not leased out to other businesses. As an illustration, if the leased space represents 25% of the FMV of the office building, then the borrower may only claim forgiveness on 75% of the mortgage interest.

Example 3:  A borrower shares a rented space with another business. When determining the amount that is eligible for loan forgiveness, the borrower must prorate rent and utility payments in the same manner as on the borrower’s 2019 tax filings, or if a new business, the borrower’s expected 2020 tax filings.

Example 4:  A borrower works out of his or her home. When determining the amount of nonpayroll costs that are eligible for loan forgiveness, the borrower may include only the share of covered expenses that were deductible on the borrower’s 2019 tax filings, or if a new business, the borrower’s expected 2020 tax filings.

Borrowers must be careful to take into account the portion of such expenses that are attributable to a tenant or subtenant.

Related Party Rent Payments

The IFRs provide that mortgage interest payments to a related party are not eligible for loan forgiveness. 

As a result of the above, borrowers who own their building in a separate entity free and clear with no mortgage will not receive credit towards forgiveness for rent paid to the related entity. The CARES Act does not provide definition of “related party” and the IFR describes “any ownership in common between the business and property owner is a related party”. The limitation applies even if an individual owns just 1% of the entity receiving rent payments. 

We will provide updates as the SBA continues to change the rules and issue more guidance on loan forgiveness.

If you have questions about this or other topics, please know we are available to speak by phone at 215-675-8364.

DISCLAIMER: The WM Daily Update COVID-19, COVID-19 Business Resources and COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.

Telecommuting and Income & State Tax Nexus

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We have received updated information regarding the current status of income and sales tax nexus. For your convenience, below are details for states that we believe will be most relevant. If you have questions about a state that is not listed below, please feel free to reach out to us as your earliest convenience.

Delaware:

No income tax guidance (there is no sales tax in DE)

Florida:

No sales tax guidance (there is no income tax in FL)

New Jersey: 

  • In the event that employees are working from home solely as a result of closures due to the coronavirus outbreak and/or the employer’s social distancing policy, no threshold will be considered to have been met.
  • As long as the out-of-state seller did not maintain any physical presence other than employees working from home in New Jersey and is below the economic thresholds the Division will not consider the out-of-state seller to have nexus for sales tax purposes during this time period.

New York:

No guidance has been issued yet. We will continue to follow.

Pennsylvania:

  • The agency will not assert corporate income tax nexus solely on the basis of “COVID19 causing people to temporarily work from home as a matter of safety and public health,” for telecommuting “occurring during the duration of this emergency” (applies to both income tax and sales tax)

Tennessee:

  • The Tennessee Department of Revenue replied that it “does not have a developed position” on the corporate income tax nexus implications of employees temporarily telecommuting due to COVID-19 and “has not received any questions about it from taxpayers.” The agency indicated that it “anticipates continuing to update its COVID-19 related guidance available on its webpage as questions arise (applies to both income tax and sales tax)

DISCLAIMER: The WM Daily Update COVID-19, COVID-19 Business Resources and COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.

Additional Articles by Wouch Maloney


Executive Order to Defer Payroll Taxes Signed by President

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Over the weekend, President Trump signed four executive orders; one of those orders focused on a deferral of payroll taxes. The details of the executive order include:

  • Defer the EMPLOYEE portion of social security taxes (employer has already been deferred under CARES Act)
  • Effective for payroll paid during the period September 1, 2020 – December 31, 2020
  • Effective for employees who earn less than $4,000 bi-weekly or less than $104,000 annually.

The Secretary of the Treasury will issue guidance on implementing the memorandum, but we do believe this order will be challenged.

To read the entire executive order, please click here.

As always, we will continue to stay abreast of breaking news and keep you updated accordingly. If you have questions about this or other topics, please know we are available to speak by phone at 215-675-8364.

DISCLAIMER: The WM Daily Update COVID-19, COVID-19 Business Resources and COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.

Additional Articles by Wouch Maloney


SBA Releases New FAQs Regarding PPP Loan Forgiveness

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Today, the SBA released a new set of FAQs pertaining to the Paycheck Protection Program (PPP). This additional guidance is designed to address borrower and lender questions concerning forgiveness of PPP loans.

To read the entire list of FAQs is no longer available (updated 07/16/2025).

As always, if you have questions about this or other topics, please know we are available to speak by phone at 215-675-8364.

DISCLAIMER: The WM Daily Update COVID-19, COVID-19 Business Resources and COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.

Additional Articles by Wouch Maloney


IRS Issues Relief Guidance on Required Minimum Distributions (RMDs)

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The IRS has provided guidance relating to the waiver in 2020 of RMDs from certain retirement plans and IRAs due to the amendment of IRC Sec. 401(a)(9) by Sec. 2203 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Notice 2020-51 provides rollover relief (including an extension of the 60-day rollover period to 8/31/20) with respect to waived RMDs from IRAs; defined contribution plans, such as 401(k)s, 403(b)s, and 457(b) plans for government employers; and the Federal Thrift Savings Plan.

RMDs taken in January through June qualify for the rollover extension until August 31, 2020. In addition, the one-rollover-every-12-months requirement for IRA owners who took RMD monthly installments in 2020 has been waived, with owners of inherited IRAs and other inherited plans also qualifying for the waiver.

Of particular interest is the extension of the 60-day deadline for rollover of certain distributions and the permitted repayments of RMDs previously distribute from an IRA. Below are the specific details of each:

Extension of 60-day deadline for rollover of certain distributions.

To assist plan participants who have already received distributions in 2020, the Treasury Department and the IRS, pursuant to § 402(c)(3)(B), are extending the 60-day rollover period for any payments described in the notice so that the deadline for rolling over such a payment will not be before August 31, 2020. For example, if a participant received a single-sum distribution in January 2020, part of which was treated as ineligible for rollover because it was considered an RMD, that participant will have until August 31, 2020, to roll over that part of the distribution. In addition, the Treasury Department and the IRS, pursuant to § 408(d)(3)(I), are extending the 60-day rollover period for IRA distributions in 2020 that would have been an RMD in 2020 but for section 2203 of the CARES Act or section 114 of the SECURE Act, so that the deadline for rolling over such distributions will not be before August 31, 2020.

Permitted repayments of RMDs previously distributed from an IRA.

In the case of an IRA owner or beneficiary who has already received a distribution of an amount that would have been an RMD in 2020 but for section 2203 of the CARES Act or section 114 of the SECURE Act, the recipient may repay the distribution to the distributing IRA, even if the repayment is made more than 60 days after the distribution, provided the repayment is made no later than August 31, 2020. The repayment will be treated as a rollover for purposes of § 408(d)(3) of the Code, but will not be treated as a rollover for purposes of the one rollover per 12-month period limitation in § 408(d)(3)(B) and the restriction on rollovers for nonspousal beneficiaries in § 408(d)(3)(C).

To read the entire notice, including the questions and answers section regarding the waiver of 2020 RMDs and a sample plan amendment, click here: Notice 2020-51.

 

 

DISCLAIMER: The WM Daily Update COVID-19, COVID-19 Business Resources and COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.

Additional Articles by Wouch Maloney


Guidance on Reporting Qualified Sick and Family Leave Wages Issued by the Treasury Department and IRS

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The US Treasury and IRS issued guidance to employers on July 8, 2020, requiring them to report the amount of qualified sick and family leave wages paid to employees under the Families First Coronavirus Response Act on Form W-2.

According to Notice 2020-54, employers will be required to report these amounts on Form W-2 , Box 14, or in a statement provided with the Form W-2 .

The guidance also provides employers with the following optional model language (which can be modified as necessary):

Included in Box 14, if applicable, are amounts paid to you as qualified sick leave wages or qualified family leave wages under the Families First Coronavirus Response Act.

Specifically, up to three types of paid qualified sick leave wages or qualified family leave wages are reported in Box 14:

  • Sick leave wages subject to the $511 per day limit because of care you required;
  • Sick leave wages subject to the $200 per day limit because of care you provided to another; and
  • Emergency family leave wages.

Self-Employed Individuals

The wage amount that employers are required to report on Form W-2 will provide self-employed individuals, who also are employees, with the information necessary to determine the amount of any sick and family leave equivalent credits they may claim in their self-employed capacities.

As always, if you have questions about this or other topics, please know we are available to speak by phone at 215-675-8364.

DISCLAIMER: The WM Daily Update COVID-19, COVID-19 Business Resources and COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.

Additional Articles by Wouch Maloney


SBA Releases Details for Approved PPP Loans and EIDL

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As we wait to learn the fate of the second stimulus bill, the SBA posted details of the Paycheck Protection Program loans that were approved for under $150,000 by State, and also a list of approved loans over $150,000 by State. The data includes bank/lender names. We are pleased to see our clients and familiar banks on these lists. It has been a very busy and uncertain time for businesses throughout our country.

In addition, the SBA released an update on the status of Economic Injury Disaster Loan (EIDL) nationwide.

For a complete review of the PPP loans and EIDL to date, visit one of the links below.

Paycheck Protection Program Loans under $150,000 by State: click here.

Paycheck Protection Program Loans over $150,000 by State: no longer available online. 

Disaster Assistance Update: Nationwide EIDL Loans, July 3, 2020: no longer available online.

As always, if you have questions about this or other topics, please know we are available to speak by phone at 215-675-8364.

DISCLAIMER: The WM Daily Update COVID-19, COVID-19 Business Resources and COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.

Additional Articles by Wouch Maloney


Updates to Paycheck Protection Program and Economic Injury Disaster Loans

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Last night, the Senate amended the Coronavirus Aid, Relief, and Economic Security Act with unanimous consent. The amended version extends the paycheck protection program through August 8, 2020. Today, the SBA website has a notice stating “On June 30 at 11:59 PM EDT, the deadline to apply for a Paycheck Protection Program loan passed”. The last minute vote by the Senate will provide business owners additional time to find lenders in their state and apply when the SBA portal reopens.

To see the SBA’s list of lenders participating in the PPP by state, click here.

For information on the Paycheck Protection Program, click here.

Economic Injury Disaster Loan and Advance Program

Earlier today, the SBA tweeted a reminder that the Economic Injury Disaster Loan and EIDL Advance program portal is now open to ALL eligible applicants experiencing economic impacts due to #COVID19. To review eligibility requirements and submit a new application for COVID-19 Economic Injury Disaster Loans and Advance, click here.

As always, if you have questions about this or other topics, please know we are available to speak by phone at 215-675-8364.

DISCLAIMER: The WM Daily Update COVID-19, COVID-19 Business Resources and COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.

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