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COVID-19 Updates & Resources
We are Here to Help you Navigate Through the COVID-19 Pandemic
The spread of COVID-19 has caused confusion, uncertainty and insecurity for just about every company throughout the United States and across the globe. Holbrook & Manter is here to help you navigate through these troubled times with up-to-date accounting resources, useful online tools and simplified explanations that tell you exactly what these government-issued updates mean for you, your business and your employees.
Helpful Resources and Websites:
…Time to Take Another Look at the Employee Retention Credit
After a series of rule changes and expansions to various COVID-19 relief programs, many companies are reconsidering certain federal benefits they had previously ruled out. The employee retention credit (ERC) is a prime example.
The initial intent of the ERC was to make it easier for a business to keep employees on the payroll if it was forced to close or partially suspend operations due to a mandatory government shutdown order or if it experienced significant revenue loss during the pandemic. While the basic structure and purpose of the program remain unchanged, both the eligibility criteria and the…
Extension of time to apply for PPP loans
A sixty-day extension of time has been signed by President Biden to allow businesses additional time to apply for PPP loans. The new PPP Extension Act of 2021 also provides an additional thirty days for the SBA to finish processing applications received by the extended deadline. The new deadline of May 31st gives eligible businesses who have not yet applied for a PPP loan additional time to do so. The program was initially set to end on March 31st, but with $94 billion still available for lending, the extension bill was passed unanimously to provide more time for businesses to…
Worker classification is very important
Over the last year, many companies have experienced “workforce fluctuations.” If your business has engaged independent contractors to address staffing needs, be careful that these workers are properly classified for federal tax purposes.
Tax obligations
The question of whether a worker is an independent contractor or an employee for federal income and employment tax purposes is a complex one. If a worker is an employee, the company must withhold federal income and payroll taxes, and pay the employer’s share of FICA taxes on the wages, plus FUTA tax. Often, a business must also provide the worker with the fringe benefits…