STREAMLINED FORGIVENESS APPLICATION FOR PPP UNDER 50K

 

Washington, Oct. 08, 2020 (GLOBE NEWSWIRE) -- The U.S. Small Business Administration, in consultation with the Treasury Department, today released a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less. This action streamlines the PPP forgiveness process to provide financial and administrative relief to America’s smallest businesses while also ensuring sound stewardship of taxpayer dollars.

Steven Mnuchin said, “Today’s action streamlines the forgiveness process for PPP borrowers with loans of $50,000 or less and thousands of PPP lenders who worked around the clock to process loans quickly,” he continued. “We are committed to making the PPP forgiveness process as simple as possible while also protecting against fraud and misuse of funds. We continue to favor additional legislation to further simplify the forgiveness process.” 

See form 3508S

PPP rules loosened

The senate just passed and sent to the President to be signed rules easing the way the PPP
monies may be used. Here are some highlights.

The bill, which overwhelmingly passed in the House last week and is now headed to President Donald Trump's desk, loosens some key rules regarding loan repayment and spending restrictions of the PPP.

The new changes are:

Lower to 60% from 75%the minimum portion of the PPP loan that must be used on payroll. The rest must be used on rent, utlitites and other business related expenses.

Extend from 8 weeks to 24 weeks the amount of time the loan can cover.

Extend from 2 to 5 years the time the new PPP loans must be paid back if the amount isn't converted to a grant.

COVID 19 HELP RESOURCES

NYC Employee Retention Grant Program

The purpose of this grant is to cover 40% of payroll costs for two months to help retain employees. This grant is available is for businesses and non-profits that reside in the five boroughs of NYC, with four or less employees. To qualify for this grant, the business must be established for at least 6 months, and have no outstanding tax liens or legal judgements. The business will need to demonstrate that the COVID-19 crisis has caused at least a 25% decrease in revenue.

More info on this grant can be found at NYC Employee Retention Grant Program

Many credit card companies are helping out:

Apple and Barclays will allow you to skip March payments with no interest or late fee

Bank of America, if you call they will refund late fees and not report it as negative.

Citibank waiving fees to small businesses

Chase, USbank, Wells and Capital will extend deadlines if you call them.

AMEX also waiving fees if you contact them.

NEW JERSEY COMMUTER BENEFITS takes effect

New Jersey Commuter Benefits: Effective March 1, 2020, New Jersey employers with at least 20 employees will be required to offer a pre-tax transportation fringe benefit to employees who are not subject to a collective bargaining agreement. TaxFree commuter benefits can be structured as an employee-funded tax-free payroll deduction; as an employer-funded benefit; or the costs can be shared by the employer and employee. This transportation fringe benefit allows an employee to set aside funds from their paycheck on a pre-tax basis. The employee can then purchase eligible transportation services, including transit passes and commuter highway vehicle travel or for parking fees.
Currently an employee is allowed to use $270. for commuter benefits plus an additional 4270. for parking if the commuter uses both.

California's Compensable Time

In a unanimous decision, the California Supreme Court held that the time spent by employees waiting for and undergoing security checks of bags and other personal items is compensable time under California law, even when the policy applies only to employees who choose to bring personal items to work. California has traditionally provided greater protection to working employees. Federal law has determined that the time employees spend going through security checks is not part of their workday. California law requires employees to be compensated not only when they are working but  when they are subject to the employer's control. The court ruled that the time is compensable if a # of factors are in play: mandatory nature of the activity, location of the activity, degree of the employer's control, whether the activity primarily benefits the employee or employer and whether the activity is enforced through disciplinary measures. This case has many ramifications. It provides a key for evaluating other compensable time under CA law