First, everyone at Jenkins CPA hopes that you and your family are doing well in these difficult times. We want to share some information about the tax and payroll implications of the current coronavirus situation and how our office plans to handle the situation. Please like and follow our Facebook page (@JenkinsCPA) where we will keep you updated as more details become available.
The Federal and State filing and payment deadlines have been extended to July 15, 2020. This does not include payroll tax payments or filings at this time.
We will be closing the office to the public effective Wednesday, March 25th. We hope to reopen April 6th. We will be available via phone and email to process payroll and assist with any immediate needs. We will be contacting all clients individually to formulate a specific plan to meet your needs in this trying time.
Families First Coronavirus Response Act
Tax credits will be provided to cover 100% of the costs associated with providing the paid leave listed below including the cost of employer-paid health coverage. These credits are expected to be paid within three months. We will assist with claiming these credits as the process is designed.
Employer’s are required to provide two weeks (up to 80 hours) at the employee’s regular pay rate (even part-time employees) if the employee is unable to work due to a quarantine or experiencing COVID-19 symptoms or two weeks (up to 80 hours) at two-thirds the employee’s regular pay rate if the employee is unable to work due to a need to care for an individual subject to quarantine.
Employer’s are required to provide an additional ten weeks (up to 400 hours) at two-thirds the employee’s regular pay rate if the employee is unable to work due to a bona fide need to care for a child whose school or child care provider is unavailable for reasons related to COVID-19.
An exemption is available to certain employers with fewer than 50 employees. The US Department of Labor is currently formulating the process for receiving this exemption. We will provide additional details as available.
Self-employed individuals are also eligible for assistance though it is unclear how or when the assistance will be received.
Missouri unemployment benefits are available for any workers you may layoff including owners who receive a W-2.
Missouri requests that mass layoffs be processed with a bulk claim for unemployment benefits. Jenkins CPA can help with that process.
Benefits are approximately 50% of average wages up to a maximum of $320 weekly.
Expected Upcoming Relief
Not yet enacted into law:
SBA Payroll Assistance loans – short-term loans to fund current payroll (might be limited to two weeks payroll) that will be forgiven after the crisis. Conditions will apply including maintaining all employees throughout the epidemic.
SBA Disaster Relief loans – longer-term loans at very low-interest rates for normal business needs including equipment and working capital. Loans will be available up to one-third of your business’s annual expenses.
Cash Distributions for Economic Stimulus – checks of at least $1,000 per adult are expected to be mailed within two weeks of legislation being passed. The exact amount of these payments and who will be eligible is still to be determined.
Jenkins’ Employee Plan
Employees are the lifeblood of any business. If you are able to continue paying your employees through this crisis, we would encourage you to do so. There is or is expected to be up to 4 weeks of government reimbursed pay available for each business. We at Jenkins CPA are going to take advantage of this 4 weeks to maintain our employees’ wages and get a better grip on what the future holds. We will take the time afforded by these programs to consider options going forward.
Please let us know if you have any questions or concerns.
Jenkins CPA, LLC
Heather Jenkins, CPA