As we approach the new year, it's crucial to stay informed about the latest developments…
COVID-19 Update August 26, 2020
Prayers for Louisiana and Texas as Hurricane Laura has just been declared Category 4, expected to make landfall early tomorrow. Once again, here is our hurricane survival guide with links to useful toolkits and resources for your safety. Please be careful, it’s so unfortunate that our community has to go through this in the midst of a pandemic.
In today’s COVID-19 news, the Small Business Administration (SBA) has released new guidance on Paycheck Protection Program (PPP) forgiveness. Some of their key clarifications include:
- C and S Corp owners with less than 5% ownership are not subject to the owner compensation limitations.
- Amounts attributable to the operations of a tenant or sub-tenant or in the context of a home-based business are not qualified expenses for forgiveness.
- Home office expenses are limited to the amount deductible on 2019 tax return or if a new business, the expected amount to be deducted on 2020 returns.
- Rent payments to related parties are eligible but are limited to the mortgage interest attributable to the space being rented during the covered period if the lease and the mortgage were both entered into before February 15, 2020.
With Congress still on recess, businesses are patiently waiting for clarification on the recent presidential directives. Trump’s memorandum on deferring payroll tax obligations in light of the Coronavirus pandemic lacks transparency in regard to who would be responsible for making these payments at a later date if the individual is no longer under your employ. In the absence of timely guidance from the Treasury Department and the IRS, however, and on the advice of benefits attorneys, most employers will likely let the Sept. 1 deadline pass without acting.
In case you missed it, our own Teresa Lawrence was featured as a guest speaker during today’s virtual event from CO – Blueprint by U.S. Chamber of Commerce. We are so proud of her for sharing Delta’s perspective on operating a socially distant business. She spoke to some of the issues workplaces are facing, such as fostering inclusion among remote employees for morale.
Stay safe! If anyone needs any help please don’t hesitate to reach out.