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CARES ACT:

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted on March 27, 2020. It is designed to encourage Eligible Employers to keep employees on their payroll, despite experiencing economic hardship related to COVID-19. To date, there are two main programs that have been created to assist small businesses with the hardships encountered due to the current economic slowdown. Additionally, the SBA has created several temporary loan programs

 

 Paycheck Protection Program.

  • The Paycheck Protection Program allows small business to potentially receive 100% federally guaranteed loans for payroll purposes.
  • Employers could be eligible for a loan of up to 2.5 x their average monthly payroll costs.

https://home.treasury.gov/system/files/136/PPP%20--%20Overview.pdf

https://www.uschamber.com/sites/default/files/023595_comm_corona_virus_smallbiz_loan_final.pdf

 

Employee Retention Credit 

  • The Employee Retention Credit is designed to encourage businesses to keep employees on their payroll.
  • The Employee Retention Credit provides for a fully refundable tax credit equal to 50% of qualified wages paid (up to $10,000b per employee) between 03/13/2020 and 12/31/2021.

https://www.irs.gov/newsroom/faqs-employee-retention-credit-under-the-cares-act

 

Additional SBA loan programs:

EIDL Loan Advance:  Provides up to $10,000 of economic relief to businesses currently experiencing a temporary loss of revenue.  https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance

SBA Express Bridge LoansEnables small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly.  https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/sba-express-bridge-loans

 

FAMILIES FIRST RESPONSE ACT: 

the FFCRA provides for expansions to Paid Sick Leave under Expanded Family and Medical Leave (EFMLA) and Emergency Paid Sick Leave (EPSL) for COVID-19 related reasons and created the refundable paid sick leave credit and the paid childcare leave credit for eligible employers.

https://www.dol.gov/sites/dolgov/files/WHD/Pandemic/FFCRA-Employee_Paid_Leave_Rights.pdf

https://www.dol.gov/sites/dolgov/files/WHD/posters/FFCRA_Poster_WH1422_Non-Federal.pdf

https://www.dol.gov/agencies/whd/pandemic/ffcra-questions

 

WASHINGTON STATE ASSISTANCE FOR SMALL BUSINESSES:

For overview of what resources are available for your employees:

https://esdorchardstorage.blob.core.windows.net/esdwa/Default/ESDWAGOV/newsroom/COVID-19/covid-19-scenarios-and-benefits.pdf

 

Paid Sick Leave (employer paid)

https://lni.wa.gov/agency/outreach/paid-sick-leave-and-coronavirus-covid-19-common-questions

Unemployment insurance

https://esd.wa.gov/newsroom/covid-19-employer-information

Paid Family Medical Leave

https://paidleave.wa.gov/coronavirus/

Workers Comp/ L&I

https://www.lni.wa.gov/agency/outreach/novel-coronavirus-outbreak-covid-19-resources

 

 

BUSINESS TAX DEADLINES:

Kitsap County PPTA (Personal Property Tax affidavit) extended to May 31

Department of Revenue:

A.      Monthlymust request extension. Request an extension for paying tax returns (even if the request is after the due date) by sending a secure email in your My DOR account or by calling  customer service at 360-705-6705, Monday through Friday 8 a.m. to 5 p.m.

B.      Quarterly- Automatically extended to June 30

C.      Annually- Automatically extended to June 15

Quarterly payroll taxes:   As of April, 4th, there have been no extensions granted for 941, Employment security, L&I, or Washington PFMLA.  The due dates for these remain April 30, 2020. However, to ease the burden of economic strain, the following offices have imposed temporary measures to assist small businesses who may not be able to pay on time:

A.      Employment security:  Offering leniency to employers who can’t file on time.  Need to request a penalty waiver by applying online https://esd.wa.gov/employer-taxes/tax-penalty-waiver

B.      Workers comp/ L&I:  Offering an Employer Assistance Program that will allow payments to be deferred up to 90 days.  You must contact L&I via phone or email to apply for this program: https://lni.wa.gov/agency/outreach/employer-assistance-program

C.      941: Beginning second quarter, certain businesses may be eligible for an advance payment of employer credits. See Employee Retention credit section for more information. 

 

This communication is intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.