Accounting News

Following are some of the key provisions of the Paycheck Protection Program under the CARES Act: >Federally -guaranteed loans up to $10 million to eligible businesses which can be partially forgivable. > The Paycheck Protection Program covers the period beginning February 15, 2020 and ending on June 30, 2020 (the Covered Period). >Authorized use of proceeds include: payroll costs; costs related to group health care benefits during periods of paid sick, medical or family leave, and insurance premiums; employee salaries, commissions, or similar compensation; mortgage interest payments (but not any prepayment of or payment of principal on a mortgage obligation); rent; utilities; and interest on any other debt obligations that were incurred before the Covered Period. >During the Covered Period, the maximum loan amount for an eligible entity is the lesser of $10 million and an amount calculated based on a payroll formula that essentially equals 2.5x the average total monthly payroll cost incurred in the on-year period before the loan is made. >Interest rates not to exceed 4% >The program goes live Friday, April 3. >Apply with your local bank, not the SBA. Applications will generally be processed on-line. Most banks require you to have a business bank account in order to apply. >You will need the last 12 months payroll reports showing gross pay by employee, last 4 quarters Form 941, proof of employer payments to employee retirement accounts (401k, SEP IRA, SIMPLE IRA), and proof of payments to state and local taxing agencies (state unemployment tax returns).

https://www.journalofaccountancy.com/news/2020/mar/cares-act-economic-relief-coronavirus-tax-provisions.html?utm_source=mnl:cpald&utm_medium=email&utm_campaign=26Mar2020