COVID-19 Resources for Your Business and Tax Questions
Information last updated 2/23/2021.
The COVID-19 pandemic continues to cause serious anxiety and has resulted in many challenges for Vermonters.
There is a plethora of information and new resources that are becoming available every day. With all of this noise, it can be so hard for us to know what to focus on. In an effort to assist you and connect you with the general tax and business-related information that is most relevant to you, we are gathering the latest articles along with curated lists of resources.
For information about Davis & Hodgdon’s Paycheck Protection Program Loan and Economic Injury Disaster Loan Assistance services please click here.
Recent PPP Updates:
The Employee Retention Credit: Essential Tax Considerations for Business Owners
Employee Retention Tax Credit Update: 3/3/2021
Paycheck Protection Program Update: 2/23/2021
Employee Retention Tax Credit Update: 2/2/2021
IMPORTANT ALERT:
If your identity was stolen and used to apply for Economic Injury Disaster Loan (EIDL) assistance from the U.S. Small Business Administration (SBA), there are some important steps you should take. Be sure to act quickly to prevent or reduce financial loss or damage. Please click here for more information.
The CARES Act
PPP Loan Forgiveness
- Form 3508 SBA Loan Forgiveness Application: https://home.treasury.gov/system/files/136/3245-0407-SBA-Form-3508-PPP-Forgiveness-Application.pdf
- Form 3508 Instructions: https://home.treasury.gov/system/files/136/PPP-Loan-Forgiveness-Application-Instructions_1_0.pdf
- Form 3508EZ: https://www.sba.gov/sites/default/files/2020-06/PPP%20Forgiveness%20Application%203508EZ%20%28%20Revised%2006.16.2020%29.pdf
- Form 3508EZ Instructions: https://home.treasury.gov/system/files/136/PPP-Loan-Forgiveness-Application-Form-EZ-Instructions.pdf
The Paycheck Protection Program (PPP): Understanding this key provision in the CARES Act:
- Paycheck Protection Loan FAQ: https://www.dh-cpa.com/cares-act-faq.html
- SBA Bank Lenders in Vermont: https://www.sba.gov/offices/district/vt/montpelier/resources/vermont-participating-lenders
- US Dept. of Treasury Assistance for Small Businesses: https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses
- Video – National Small Business Town Hall Presented by Inc. and the U.S. Chamber of Commerce: https://www.uschamber.com/co/events/national-small-business-town-hall-inc-us-chamber
- PPP Loan Guidelines for Sole Proprietors and Independent Contractors: https://www.schgroup.com/resource/blog-post/paycheck-protection-program-guidelines-for-sole-proprietors-and-independent-contractors/
Tax aspects of the CARES Act:
- Summary of tax provisions in the CARES Act: https://www.dh-cpa.com/summary-of-tax-provisions-within-the-cares-act.html
The Small Business Owner’s Guide to the CARES Act
The CARES Act: Healthcare, Benefits, Retirement, Business Provisions:
Income Tax Issues
The deadlines for federal and Vermont tax filing have been moved to July 15 and this has an impact on several other tax-related issues including quarterly estimate payments as well as IRA and HSA contributions. See the links below for more information.
IRS Coronavirus Tax Relief:
Federal and State Due Dates and Payment Dates
Vermont Dept. of Taxes Coronavirus Updates
- Regular Coronavirus Updates: https://tax.vermont.gov/coronavirus
- Vermont tax relief FAQ: https://tax.vermont.gov/sites/tax/files/documents/FS-1272.pdf
SBA Disaster Assistance Loans
The SBA Disaster Assistance Program for COVID-19 will be an Economic Injury Disaster (EIDL) Loan. The Loan program provides small businesses of any size with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
- Apply for this loan here: https://disasterloan.sba.gov/ela/
- Sample application to view what documentation is needed: Click here
- Small business guidance and loan resources: https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources
- US Chamber Guide to SBA EIDL: https://www.uschamber.com/report/guide-sbas-economic-injury-disaster-loans
- Eligible SBA lenders in Vermont: https://www.sba.gov/offices/district/vt/montpelier/resources/vermont-participating-lenders
Families First Coronavirus Response Act (FFCRA)
The FFCRA provides several responses to address the ongoing coronavirus pandemic including leave for employees affected by coronavirus through the Emergency Family and Medical Leave Expansion Act (EFMLA) and the Emergency Paid Sick Leave Act (EPSLA). The FFCRA also provides refundable tax credits for employers providing the required paid family and sick leave to employees in connection with this public health emergency.
General Guidelines
- What should we do first? https://www.bmdllc.com/resources/blog/ffcra-signed-into-law-what-should-we-do-first-with-tax-insights-from-apple-growth-partners/
- FFCRA Q&A from Department of Labor: https://www.dol.gov/agencies/whd/pandemic/ffcra-questions
- Paid leave requirements: https://www.dol.gov/agencies/whd/pandemic/ffcra-employer-paid-leave
- What the FFCRA bill means for small business owners and the self-employed:https://www.marketwatch.com/story/what-the-family-first-coronavirus-relief-bill-means-for-small-business-owners-and-self-employed-people-2020-03-21
- FFCRA Employer Paid Leave Requirements: https://www.dol.gov/agencies/whd/pandemic/ffcra-employer-paid-leave
Employer Cheat Sheet for the Leave Requirements
Reimbursement for Businesses
- https://content.govdelivery.com/accounts/USIRS/bulletins/2826044
- https://www.awfs.org/2020/03/business-credits-for-the-families-first-coronavirus-response-act/
FFCRA poster for employers:
General Business Issues
- Unemployment Benefits Eligibility FAQs: https://labor.vermont.gov/covid19/covid-19-frequently-asked-questions
- Small Business COVID-19 Response Checklist (Organized into 4 categories: Manage and Plan Cashflow, Debt Options, Employment Ideas, Tax Law Changes): https://www.biggskofford.com/updated-march-23-covid-19-small-business-response-checklist/
- COVID-19 Small Business Resource Hub: https://covidresources.gusto.com/?utm_source=cpapracticeadvisor&utm_medium=paid&utm_campaign=mar20-email-blast-2
- COVID-19 Guidance for Vermont Businesses (Vermont Agency of Commerce and Community Development): https://accd.vermont.gov/about-us/disaster-planning/covid-19-guidance-vermont-businesses
https://accd.vermont.gov/ - Business Insight for COVID-19 including webcasts: https://rsmus.com/economics/coronavirus-resource-center.html
- Steering your budget amid coronavirus uncertainty: https://www.fm-magazine.com/podcast/budgeting-agility-amid-coronavirus-uncertainty.html
- Love Vermont – Buy a gift card, shop an online store, pick-up take out or donate to a struggling local Vermont business: https://www.lovevermont.org/
- VMEC COVID-19 Resource Guide for Manufacturers: https://vmec.org/resources/covid-19-coronavirus-resource-page-for-manufacturers/