The senate bill for the stimulus package is stalled, because it’s our understanding that certain senators are trying to add special interests’ groups info in the bill. It’s sad because so many small businesses are in dire need of something to pass and need to know that help is on the way.
You can check out the bill in its current form, athough it has been voted down twice in the senate today.
Some clarifications of the bill that was passed last week have come through over the weekend from the IRS. The big one is that on the credits that businesses get for paying out the wages or benefits for anyone out on the leave for either sick pay or for FMLA leave, you are also able to use the federal withholding in addition to the fica tax that was originally the only tax allowed to credit.
In addition, the taxes will be able to be credited on a payroll by payroll basis instead of having to wait till the end of a quarter to receive the credits for any of these costs due to the new law passed last week.
I can tell you that in the SBA loan that is in the stimulus bill the amount of the loan that may be forgivable is 2.5 times your average monthly wages. If it passes, then this would allow you to basically allow you to pay people through this period of uncertainty for at least a couple months. Hopefully this passes. We will have more info about the law as it gets passed. We are also working on getting resources for anyone wanting to apply for the SBA loan program.
Attached is the Louisiana letter about staying at home but in addition is the federal guidance on essential workers.
Lastly our 401k provider is offering a webinar on Wednesday for anyone that wants to discuss any issues or need guidance on 401k issues. please see the brochure attached if you would like to sign up for that as well.
As always please reach out if you have any questions.