Dear Clients and Friends,
At SSB, we are monitoring the developments involving COVID-19 and are available to assist you during these trying times. As we learn more, we will update our list of resources which will be available at https://www.ssb-cpa.com/news/.
Currently, Congress is working on the Families First Coronavirus Response Bill which would provide the IRS with $15 million to implement tax credits for paid sick, family and medical leave. Generally, as currently written, the bill would provide the following refundable tax credits:
- a refundable tax credit equal to 100 percent of qualified paid sick leave wages paid by an employer for each calendar quarter. The tax credit is allowed against the tax imposed by Code Sec. 3111(a) (the employer portion of Social Security taxes);
- a refundable tax credit equal to 100 percent of a qualified sick leave equivalent amount for eligible self-employed individuals, and those caring for a family member or for a child whose school or place of care has been closed due to coronavirus, the bill would provide a refundable tax credit equal to 67 percent of a qualified sick leave equivalent amount;
- a refundable tax credit equal to 100 percent of qualified family leave wages paid by an employer for each calendar quarter. The tax credit is allowed against the tax imposed by Code Sec. 3111(a) (the employer portion of Social Security taxes); and
- a refundable tax credit equal to 100 percent of a qualified family leave equivalent amount for eligible self-employed individuals.
These provisions are not yet final and are subject to change. We will continue to monitor the progress on this bill and will provide information on the details when a final conclusion is reached.
Other resources include:
- The Small Business Administration is providing low interest working capital loans of up to $2 million for small business owners impacted by the virus. Learn more by visiting https://www.sba.gov/page/guidance-businesses-employers-plan-respond-coronavirus-disease-2019-covid-19.
- The Ohio Department of Job & Family Services has a Q&A page regarding Coronavirus and Unemployment Insurance Benefits at http://jfs.ohio.gov/ouio/CoronavirusAndUI.stm.
- Bars and restaurants have the ability to receive refunds for certain products purchased. Please follow this link for more information: https://myemail.constantcontact.com/UPDATED-PROCESS–Wholesale-Return-Requests.html?soid=1102307935227&aid=92tdpfaBfug.
- For up-to-date information in the State of Ohio, please continue to visit coronavirus.ohio.gov.
- On March 11, the AICPA called for the Treasury Department and the IRS to provide relief to all taxpayers in light of the uncertainty and challenges caused by the spread of the coronavirus (press release).
- The IRS has created a new website, https://www.irs.gov/coronavirus, which will be updated as new information becomes available.
- The BBB Coronavirus Report has information for businesses as they evaluate their options in the coming weeks. BBB also has additional tips and information regarding coronavirus scams at BBB.org/coronavirus.
- The United Way of Youngstown and the Mahoning Valley is setting up a COVID 19 Response Fund to meet the needs of its partner agencies and other nonprofits. The agency is working with nonprofits, government agencies, school districts and the business community to find solutions to the problems students, families and individuals will face in the coming weeks. Anyone who would like to donate to this fund can do so via the United Way website or by texting the word, COVID19, to 313131.
Please contact your SSB advisor as you need assistance in the upcoming weeks. As always, we are here to help, and we will navigate this together.