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Showing posts from November, 2020

IRS Releases New Guidance on Tax Treatment of PPP Loan Expenses

  IRS Releases New Guidance on Tax Treatment of PPP Loan Expenses  Yesterday (November 18), the U.S. Treasury Department and Internal Revenue Service (IRS) released guidance clarifying the tax treatment of expenses where a Paycheck Protection Program (PPP) loan has not been forgiven by the end of the year the loan was received. You can read more  here . “ Today’s guidance provides taxpayers with greater clarity and flexibility…These provisions ensure that all small businesses receiving PPP loans are treated fairly, and we continue to encourage borrowers to file for loan forgiveness as quickly as possible .” - Secretary Steven Mnuchin Since businesses are not taxed on the proceeds of a forgiven PPP loan, the expenses are not deductible. This results in neither a tax benefit nor tax harm since the taxpayer has not paid anything out of pocket. If a business reasonably believes that a PPP loan will be forgiven in the future, expenses related to the loan are not deductible, whether the busi

Video Seminar: Paycheck Protection Program Loan Forgiveness

Video Seminar: Paycheck Protection Program Loan Forgiveness To help make the PPP loan forgiveness process as easy as possible, EY developed a one-hour video seminar for Bank of America clients. This seminar does not reflect advice from Bank of America and is not intended, and should not be relied upon, as any professional advice. Seminar topics include: PPP loan forgiveness overview PPP forgiveness milestones and timeline Use of loan proceeds for loan forgiveness Qualified expenses and documents required How loan forgiveness is calculated Application Form 3508EZ, 3508 and 3508S Borrower considerations and responsibilities Please note the seminar does not take into account any specific individual facts or circumstances. Watch Now To check your PPP loan forgiveness status, please sign in with your Online Banking username and password, click on your Paycheck Protection Program Loan and select "Check PPP Status". If you need assistance, please contact us at 866.457.4892 on Monda

How PEO Clients Fared in the First Months of the COVID-19 Pandemic: A Comparative Analysis

This NAPEO White Paper gives great support as to why every small to medium size business needs a PEO, especially during a Pandemic.  How PEO Clients Fared in the First Months of the COVID-19 Pandemic: A Comparative Analysis Laurie Bassi and Dan McMurrer, McBassi & Company  September 2020 The 2020 COVID-19 pandemic has created unprecedented economic challenges for almost all employers, with small businesses hit especially hard. This white paper examines the available evidence on the early impact that PEOs had on business outcomes for their clients. (Because the pandemic and its effects are ongoing, it is of course not yet possible to assess any final effects on small businesses or the economy as a whole.) Specifically, we explored PEOs’ impacts on the following key outcomes for their clients: Paycheck Protection Program (PPP) loans Percent receiving PPP loans Percent receiving PPP loans earlier in the process Current business status (open/closed) Business survival In each of these a