A Proactive Approach to COVID-19
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To Our Clients and Friends,
During these difficult times, and as you are dealing with the outbreak of COVID-19, we want to reach out to let you know that we are here and will continue to assist you in your accounting and advisory matters in order to help you achieve peace of mind.
- Our offices will remain open for the foreseeable future, however, the majority of our employees are working from home. BMSS employees are fully equipped and able to work remotely to provide you with uninterrupted service during this time.
- In an attempt to prevent the spread of COVID-19, we will be minimizing in-person meetings. Please drop off, scan or email as much information as possible; we will be doing the same.
This page will be kept up-to-date with valuable information for you and your business throughout the duration of COVID-19. Please refer back on a regular basis to see valuable information.
BMSS RESOURCES: (listed in chronological order)
In this webinar, Anoop Mishra, Vice President and Regional Executive of the Birmingham Branch of the Federal Reserve Bank of Atlanta, and Greg Canfield, Secretary of the Alabama Department of Commerce, provided us with an overview of what is happening in the economy from a federal and a state perspective.
The Current State of the PPP: What You Need to Know Now About Your Loan
The Paycheck Protection Program, which was established by the CARES Act, was created to provide small businesses with funds to provide coverage of payroll costs for an 8-week period during the height of COVID-19. Now that we are in the loan forgiveness stage, there are still a great deal of unknowns as well as obstacles in the way of finalizing loan forgiveness. In this hour-long webinar, BMSS Member Bill Lorimer, CPA and Senior Manager Mark Underhill, CPA, CM&AA help us understand what steps we should be taking today.
IRS Issues Guidance for Deferral of Certain Employee Payroll Tax in Light of the Ongoing COVID-19 Pandemic
On Friday, August 28, 2020, the IRS issued a news release announcing that Notice 2020-65 had been issued to provide guidance to implement the Presidential Memorandum issued on August 8, 2020. This memorandum allows employers to defer withholding and payment of the employee’s portion of the Social Security tax if the employee’s wages are below a certain amount.
The employee Social Security tax deferral may apply to payments of taxable wages to an employee that are less than $4,000 during a bi-weekly pay period, with each pay period considered separately. No deferral is available for any payment to an employee of taxable wages of $4,000 or above for a bi-weekly pay period.
The relief available for employers generally applies to wages paid starting September 1, 2020, through December 31, 2020. Any withholding deferred under the notice must be withheld ratably from wages paid between January 1, 2021 and April 30, 2021. The guidance allows employers to defer withholding and paying the tax, but it does not require employer participation.
“Revive Alabama” – New Small Business Grant Program from Governor Kay Ivey
Governor Kay Ivey implemented a new small business grant program called “Revive Alabama.” This program will offer up to a combined $100 million for small businesses across the state that have been impacted by COVID-19 and will reimburse affected businesses for expenses they have incurred due to interruptions caused by the pandemic and related business closures.
Qualifying businesses may receive a cash grant of up to $15,000 in reimbursements if they have not received federal assistance for the corresponding item they are claiming with the state of Alabama. Grants will be awarded on a first-come, first-serve basis until the funds are exhausted. So, if your business qualifies, you can apply by visiting the Revive Alabama homepage when the application opens at noon on July 16th. Applications will close at midnight on July 25th.
Don’t Rush Your PPP Loan Forgiveness Application. Here’s Why:
In a nutshell, details are still being worked out by the Small Business Administration (SBA), the U.S. Treasury Department and lenders. Until those details are finalized, it may be wise to wait. Here are five factors affecting the application process:
- Most lenders are not ready to process forgiveness applications and are building technology tools to help streamline the process.
- Since the covered period was extended to 24 weeks, it may be prudent to use that extra time to fully maximize the funds for forgivable expenses.
- Payroll providers, like lenders, are developing custom reports to comply with PPP guidance but are waiting on final guidance from the SBA and Treasury.
- Borrowers are not required to make any loan payments until they apply for forgiveness or until 10 months after their loan period ends.
- The application process may be easier than expected if you qualify for the SBA Form 3508EZ. (Click on the link to access the checklist for using the SBA Form 3508EZ.)
As in all things, it is best to evaluate your own unique circumstances when deciding when is the right time to apply. Schedule a call with your BMSS professional to discuss what options may be best for you and your company.
The Small Business Administration (SBA) has finally released the much-anticipated, revised PPP Forgiveness application along with a newly created Form EZ version which simplifies the process for eligible borrowers. These forms and their accompanying instructions have been updated to account for the recently passed PPP Flexibility Act of 2020.
Please join us as we discuss the updated loan forgiveness application, newly created Form EZ, changes from the PPP Flexibility Act, as well as other lending options that may be of use as you navigate these challenging times.
To register, click on this link: https://bmss.zoom.us/webinar/register/WN_cy9VfBdCTCSe1JaxgZisJw
On May 14, we hosted BMSS Presents: An Update for the Manufacturing & Distribution Industry within the COVID-19 Environment. Click here for the slides and below for the recording:
On April 30, we hosted BMSS Presents: Loan Forgiveness Within the Paycheck Protection Program. Click here for the PPT slides and below for the recording:
On April 21, we shared a survey with clients and contacts entitled The Business Impact from the COVID-19 Crisis. We received nearly 150 responses which can be reviewed here.
If you are participating in the Paycheck Protection Program (PPP) and have received your funding, it is likely you have questions about the second phase of the program – loan forgiveness. The loan forgiveness aspect of PPP is anticipated to be extremely complex and likely to be ever changing. Read to post to be prepared: Important Update on the Loan Forgiveness Phase of the PPP.
COVID-19 has affected nearly every industry, including manufacturing and distribution.
Read how the CARES Act is assisting manufacturers during this time:
Coronavirus Aid, Relief and Economic Security Act: Manufacturing Impacts
Read how to navigate supply chain disruption throughout COVID-19:
How Manufacturers Can Navigate the Novel Coronavirus’ Supply Chain Impacts
Could Your Company’s Retirement Plan be Affected by COVID-19?
Everyone is getting hit hard from the effects of COVID-19 and the quarantine orders. While you are focused on your businesses and employees, have you considered how your company’s retirement plan may be affected?
Click on this link to read some information for you to consider. If you have any questions, please reach out to your BMSS employee benefit plan professional. We’re here to help.
Everyone is getting hit hard from the effects of COVID-19 and the quarantines, including nonprofit organizations. Click on the link below to read some information about how the CARES Act may impact nonprofits. If you have any questions, please reach out to your BMSS professional. We’re here to help.
Please join us Thursday, April 9 at 9 a.m. as BMSS Wesson Wealth Solutions CEO, Mark Wesson, discusses the latest developments in the market and economy precipitated by the COVID-19 crisis and how this may affect you.
To reserve your space in this webinar, register at this link.
Click here to access a four-part recording of today’s webinar, Exploring the CARES Act: What it Could Mean for You & Your Business
Click here for our COVID-19 Construction Industry Checklist. Construction job sites and projects are still considered essential, the construction industry is not immune from the effects of the virus. We’re here to help.
Exploring the CARES Act: What it Could Mean for You & Your Business (WEBINAR)
Presented by Keith Barfield, Steve Smith, Trip Umbach and more
Thursday, April 2 at 9 a.m.
Link to register
COVID-19 has affected everyone but especially the consumer business industry. How can you get prepared to weather the storm? Click here for our COVID-19 Consumer Business Response Checklist.
Are you uncertain how the COVID-19 could impact you and your business? Do you want to be better prepared for possible outcomes? Join Tuesday, March 24 at 9:00 a.m. as tax, human resources and insurance experts discuss the latest details about tax relief provisions, SBA initiatives, and human resources and insurance issues. Click above link for more details and to register.
Washington and Families First Coronavirus Response Act Updates from BMSS Tax Member Steve Smith
In addition, we would like to share timely medical content from March 12th’s seminar, BMSS Presents: A Proactive Approach to COVID-19:
The Medical Impact:
As the situation evolves, please refer to the Centers for Disease Control and Prevention (CDC) and the World Health Organization for steps to help mitigate the spread of this disease. We will continue to monitor the situation and wish everyone continued good health during this disruption to our business and personal lives.
The accounting, tax and general business implications of COVID-19 is a rapidly evolving situation and BMSS will provide updated and/or revised information as it becomes available. Some information that we provide, for example, updates on the progress, passage, and contents of The Families First Coronavirus Response Act, may raise legal implications in addition to tax and accounting issues. Our mention of any such matters is for general information purposes and not intended to be legal advice. We encourage you to consult with your legal counsel on such matters.