PPP Update – Form 3508S

On October 8, 2020, the SBA released a new PPP Loan Forgiveness Application, Form 3508S. This form is for borrowers with PPP loans of $50,000 or less. (Borrowers who, together with their affiliates, received PPP loans totaling $2 million or more cannot use Form 3508S.) SBA Form 3508S requires fewer calculations and less documentation for…

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IRS Delivers Temporary Midyear Relief to 401(K) and 403(B) Safe Harbor Plans

Plan sponsors that have already or are considering reducing or suspending contributions to their safe harbor 401(k) or 403(b) plans as a result of the coronavirus pandemic now have helpful relief thanks to new guidance from the Internal Revenue Service (IRS). In Notice 2020-52, the IRS recognized that many employers are facing unprecedented financial challenges as…

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President Enacts Option to Defer Certain Payroll Taxes Until the End Of 2020

On August 8, 2020, President Trump issued an executive order which will allow deferral of certain payroll tax payments. This action only applies to employees who generally earn less than $4,000 per biweekly pay period (approximately $2,000 per week or $104,000 annually). Such an employee may temporarily defer their portion of Social Security tax (6.2%).…

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Borrower Accounting for PPP Loans

Although the legal form of the PPP loan is debt, some believe the loan is, in substance, a government grant. This has caused confusion on how borrowers should account for the loans under Generally Accepted Accounting Principles (GAAP). There is no guidance in existing GAAP that specifically addresses the accounting for forgivable loans obtained from,…

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Notice: Paycheck Protection Program has reopened.

The Paycheck Protection Program began accepting new applications July 6, 2020, at 9:00 AM EDT in response to the Paycheck Protection Program Extension Act. The new deadline to apply for a Paycheck Protection Program loan is August 8, 2020. https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program  

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New PPP Loan Forgiveness Applications

This article was published on June 18, 2020. The SBA has finally released updated Paycheck Protection Program (PPP) Loan Forgiveness Applications and instructions. You read that right, two forgiveness applications were released. The initially released PPP Loan Forgiveness Application (Form 3508) combined the instructions and the various parts of the application into a single 11…

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Economic Impact Payment Prepaid Debit Cards

The IRS is now sending out some taxpayer’s stimulus payments on prepaid debit cards. The debit cards arrive in a plain envelope from Money Network Cardholder Services. As a result, taxpayers may have accidentally thrown out their stimulus payments mistaking them for credit card offers or other spam mailing. IRS became aware of taxpayer concerns…

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PPP Forgiveness: The Latest Update

**This article was updated to reflect additional guidance from the SBA and Congress. The intent of the Paycheck Protection Program Flexibility Act of 2020 was to keep the original deadline for PPP applications as June 30, 2020. Further, the Payroll Costs 60% Requirement was clarified as not being a cliff. The article below was updated…

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PPP Loan Forgiveness: The Two New Interim Final Rules & What’s Next for Borrowers

On May 22nd, the Small Business Administration (SBA) issued the fourteenth and fifteenth Interim Final Rules, which add to what is known about Paycheck Protection Program (PPP) loan forgiveness and the SBA and lender review process. The fourteenth Interim Final Rule, “Requirements – Loan Forgiveness” focuses on, as the name suggests loan forgiveness, and the…

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