We are going through unprecedented times; they are scary and confusing. We are not trying to appear as an expert or know what you may want to do. But as one of our very important Customers-Partners, we want to share the information our Associations, Auditors, Advisors, and Legal Consultants have shared with us. Below are the highlights we feel are most relevant to our IGOs and fleets. We will continue to build on this and share additional information as it becomes available.
SBA Payroll Protection Program Loans
*Allow employers with less than 500 employees to apply for a loan equal to 2.5 x average monthly payroll costs (including gross payroll, payroll taxes, health care, and retirement).
*The incentive is for you to keep your employees employed and paid, instead of layoffs.
*During the eight-week period after the loan is approved, expenses for payroll costs (as defined above) plus up to 25% can be used to cover other costs (rent, utilities, and interest).
*Assuming loan funds are used for eligible costs, the loan should be forgiven.
*If a loan is found not eligible for forgiveness, there are low-interest repayment options (up to ten years).
*Contact your local bank to start the process as applications open up Friday 4/3/2020.
*Loan program is open through 6/30/2020. However, it is recommended you contact your bank and start the process as soon as possible.
* One-page applications are available online, and your accountant/tax advisor will be able to help you complete the one-page application.
*Self-employed individuals can also qualify (applications open 4/10/2020). If you are self-employed contact your bank and tax advisor for details on how the program applies.
*Individual taxpayers can expect between 4/17 – 4/30, an IRS rebate check of $1,200 per individual ($2,400 for married couples filing jointly), plus $500 for each dependent child.
*Begin to phase out for taxpayers whose adjusted gross income exceeds $150,000 for joint returns, $112,500 for the head of household, and $75,000 for all other taxpayers.
*The amount of recovery rebate a taxpayer receives is based on information reported on the taxpayer’s 2019 tax return (or 2018 if the taxpayer has not yet filed a 2019 return).
*If you don’t receive an advance recovery check, you still may be eligible for the rebate on your 2020 return should your tax filing situation change and make you eligible.
For more information…
*Expanded unemployment insurance benefits for individuals (including those who are self-employed) who become unemployed, partially unemployed, or are unable to work due to COVID-19 between January 27, 2020, and December 31, 2020.
*In general, the unemployment benefit is increased by $600 per week (referred to as Federal Pandemic Unemployment Compensation). Benefits may vary by state. Refer to this link, which provides a link to each state’s unemployment website.
Delay of Payment of Employer Payroll & Self-Employment Taxes Allow for More Cash Flow
*Delay the remittance of the employer 6.2% FICA payroll taxes to the IRS after March 27, 2020, through December 31, 2020. These taxes, which are deferred, 50% are due December 31, 2021, and the remaining 50% are due by December 31, 2022.
*Contact your payroll provider or accountant who is in charge of your payroll filings to get the process started. No application required, simply delay the payment.
The safety and health – physical, mental and financial well-being of our Associate-Owners is our First Priority. We continue to practice social distancing with over 150 staff operating remotely, staggered start times, additional handwashing, more frequent cleaning of common areas, and daily communication to all. We also have finalized our COVID-19 task force with work instructions when we do have a confirmed case. This was developed by working with local and state health departments, along with doing mock drills.
Thank you again for the trust you have instilled in us. We will come out of this stronger and more united than before. Thank you so much.
Jasper Engines & Transmissions