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Coronavirus Resource Center

Coronavirus—Protecting you and our staff

To Our Valued Clients,

During the unprecedented public health emergency surrounding the Coronavirus, We want to keep you informed about our contingency plans to keep our operations running with minimal disruption. Here’s what we know now and the measures we’re taking:

  • We are prepared to transition the majority of our staff to work at their homes during the next several weeks, if necessary. This would likely sacrifice a little efficiency; however, our workflow, including all payroll, bookkeeping, tax filings, etc., can continue securely and uninterrupted. We will advise you if and when we take this step.

 

  • Our main switchboard will remain open, and you can continue to call our staff directly at their regular extensions. Our phone system will route calls to them even if they are working remotely. Email, video conferencing and other electronic communications will remain in use seamlessly.

 

  • If at all possible, please make use of our online means to conduct business, rather than making in-person office visits. For tax document filings, use the NetClient CS app, available on our website. If you haven’t set up your login, find the NetClient CS link on our homepage under the client center to access NetClient CS tutorials, and you’ll find the resources you need to get started:

Client Login

The Client Center is one of the accounting tools provided to MFI clients. It provides a one-stop shop to help you organize and navigate your tax situation. Securely log in to access your information and the links below to go directly to the resources you need.

Login to Account

Mobile App

The mobile apps are an extension of our Client Center. Using your tablet or mobile device, you can access your tax and accounting documents anytime, anywhere, when you are on the go.

Download App

Video and Tutorials

Videos and documentation to help you utilize our client center and its applications.

Watch Videos

Client Forms

Prior to engaging with our team of accountants, we have developed some checklists and forms that will help guide you and our team through gathering the information needed to file your taxes.

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Government Forms

Prior to engaging with our team of accountants, we have developed some checklists and forms that will help guide you and our team through gathering the information needed to file your taxes.

Read More

Client Questions

We want your experience at MFICPA to be easy, burden free and information available 24/7.

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  • See our Latest Federal Updates section below for new information on the tax filing deadline and other updates as they are released.

We understand and share your concern about Coronavirus and public health, and we’re doing our part to help mitigate the spread of the virus while minimizing any disruption to productivity and workflow.

Finally, we want to impress upon you the enormity of the economic impact this crisis is imposing on our local business communities. Most small businesses simply don’t have the resources to weather an unprecedented event like this for an extended time period. We strongly encourage you to support your local merchants and business community in every way possible while we all work together to overcome this great challenge.

Sincerely,

McBeath, Fates & Ivers, P.C.

PPP Loan Forgiveness Application

To our clients:

If you have received the paycheck protection program (PPP) loan from the SBA you now have the ability to apply for the forgiveness part of this program.  If you thought the application for the loan itself was strenuous you ain’t seen nothing yet.  We have attached the application for forgiveness which the SBA released this week.  This is an 11 page form which includes calculation forms as to how to compute the amount for the payroll to be forgiven and also instructions on the type of documentation you will need to provide your banker.  One piece of information the SBA released last week relieves the borrower of  less than $2 million in loans the need to prove that the loan was needed and was used for expenses you could have otherwise provide.  If you did receive more than $2 million you will have to go through that exercise with your banker, the rules of which the SBA has not released.

As most of you probably realize the costs you can use for this loan and that are eligible to be forgiven are 1) Payroll costs, consisting of employee compensation of salary, wages, commissions, vacation, medical or sick leave, or allowance for separation or dismissal, payment for employee benefits, including insurance premiums and retirement, payment of state and local SUI, 2) a)interest of mortgage obligations, b)rent or leases on real or personal property and c) utility payments for gas, water, electric, telephone or internet.  Wages for each individual will not be allowed for amounts greater than an annualized rate of $100,000 or $15,384.62.

The payments of 1 above must be in the 8 week period starting with the date you received the loan proceeds or for 2) above paid or incurred within the same 8 week period.  The amount of loan forgiveness may be subject to reductions as explained in the PPP Schedule A for of the attached application.

On page 10 of the application includes the documentation that your banker will need to complete the application.  Items will include bank statements or payroll reports documenting the amounts of payroll, payroll tax filings such as 941 forms and SUI forms, receipts or cancelled checks for employee benefits paid.  Non payroll documentation will include lender amortization schedules for interest payments, rent or lease agreements and cancelled checks and utility invoices from both February 2020 and the 8 week covered period.

Remember this is an application and must be filed by you with your lender no later than October 31, 2020.  Our guess is the sooner you get this information together and to your lender the better.

If you have any questions or feel you need help completing this application or simply need someone to review your computations feel free to contact us and we will help you get through this application quickly and completely.

Sincerely,

McBeath, Fates & Ivers, P.C.

Latest Federal Updates

To our valued clients:

As you may have heard, the US Government has delayed the Individual and Corporate tax filing deadline by 90 days.  The new deadline for filing and paying for your 2019 taxes is 7/15/20 as long as you owe less than $1,000,000 for individuals or less than $10,000,000 for corporations. Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020.

The US Government has also extended payments due for Q1 2020 (originally due 4/15/20) by 90 days to 7/15/20.  At this time it is unclear if the Q2 estimates due on 6/15/20 will be extended.

McBeath, Fates, and Ivers and our staff will continue processing tax returns as the information comes in from clients.  You will just have a longer time frame to figure out funding any tax due.

There have been reports of scammers trying to take advantage of the situation.  The IRS will not contact you via text, email, or phone for you to get your stimulus check. Please do not click on links or give any of your personal information out.

If you have any questions please reach out to us.

 

March 21, 2020

Under the recently enacted Coronavirus Preparedness and Response Supplemental Appropriations Act (the Act), small businesses that have suffered substantial economic injury as a result of COVID-19 can apply for low-interest federal disaster loans through SBA. Small businesses and nonprofits can apply for working capital loans of up to $2 million.

We’ve highlighted the following key details of the Act for you here, but you can also learn more by visiting the COVID-19 disaster assistance page on SBA’s website.

  • State governors must first request access to the Economic Injury Disaster Loan program. Once the declaration is made, information on the application process for disaster loan assistance will be made available to affected small businesses within the given state.
  • Loans carry an interest rate of 3.75% for small businesses and 2.75% for nonprofits.
  • Loans can be used to cover accounts payable, debts, payroll and other bills.
  • Loans can be offered with long-term repayments in order to keep payments affordable—up to a maximum of 30 years. Terms are determined on a case-by-case basis.
  • Businesses will apply for loans online and select “Economic Injury” as the reason for seeking assistance.
  • SBA offers disaster assistance via its customer service center. If you have questions or want to check if your state is eligible, contact U.S. Small Business Administration via phone at 800-659-2955 (TTY: 800-877-8339) or e-mail disastercustomerservice@sba.gov.

The coronavirus situation is changing rapidly, as are the updates to various relief efforts. We will continue to monitor news and keep you updated as clarification is provided.

If you have questions, be sure to reach out to us. Our entire team is here to support and guide you!

March 20, 2020

“The Families First Coronavirus Response Act” (FFCRA), which goes into effect April 2, 2020 and expires December 31, 2020, responds to the coronavirus outbreak by providing additional assistance in the areas of COVID-19 testing, sick leave, food assistance and more. We’ve compiled key details of FFCRA that we believe you need to know.

 

In summary, the Act:

  • Requires private insurance plans to provide free COVID-19 testing.
  • Requires employers to provide emergency paid sick leave to workers affected by COVID-19 and expands family and medical leave.
  • Offers increased funding for state unemployment insurance, food stamp and nutritional programs.

More specifically, here’s what FFCRA means for both business owners and employees in the areas of sick leave and expanded family and medical leave.

  • Employees are eligible for up to two weeks of sick leave (full pay for self, 2/3 pay for family care) for illness, quarantine or school closures.
  • Employees are eligible for up to 12 weeks of FMLA leave for school closures (10 days unpaid and then up to 10 weeks at 2/3 pay).
  • FMLA expansion covers:
    • Employers with fewer than 500 employees.
    • Employees who have been employed for at least 30 calendar days (some exclusions may apply).
    • Employees who must care for children under the age of 18 in the event of school and place-of-care closures or if care provider is unavailable due to a public health emergency with respect to COVID-19.
  • Emergency paid sick leave covers:
    • Employers with fewer than 500 employees.
    • All employees no matter the length of employment (some exclusions may apply).
  • Small businesses with fewer than 50 employees may qualify for exemption from the requirement to provide leave due to school closings or child care unavailability if the leave requirements would jeopardize the viability of the business as a going concern.

 

Department of Labor Links:

  • FFCRA: Questions and Answers
  • As part of the FFCRA, employers are required to provide notice to employees of the Act’s provisions. An example of the required notice has been made available by the Department of Labor and can be downloaded here: FFCRA NOTICE TO EMPLOYEES.
  • In addition, the Department of Labor has made available a FAQ page discussing the notice requirements: FFCRA NOTICE – FAQ.

The coronavirus situation is changing rapidly, as are the updates to various relief efforts. We will continue to monitor news and keep you updated as clarification is provided.

If you have questions, be sure to reach out to us. Our entire team is here to support and guide you!

Dear Valued Client,

McBeath, Fates & Ivers, PC is taking the situation with coronavirus seriously.  Our number one priority is the safety and well-being of our clients, our staff, and our families.  It is also remains very important to us to continue to provide excellent service and keep this tax season moving.  With that in mind, we have decided to take the following precautionary measures:

  • To those clients who normally meet with us in our offices, we ask that you please mail, upload documents to our portal, or email your tax documents instead of coming in. We will prepare your taxes and call you to review everything at a time that is convenient to you.
  • Our staff now has the option to work from home. Fortunately, technology is to the point where working from home or at the office is virtually interchangeable.  We do not anticipate any interruptions in our service due to this policy.
  • No one will be permitted to enter or remain in the office with any flu like symptoms.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses who maintain their payroll during this emergency.

Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.

The administration soon will release more details including the list of lenders offering loans under the program. In the meantime, the U.S. Chamber of Commerce has issued this guide to help small businesses and self-employed individuals prepare to file for a loan.

To our clients:

The times they are a changing sang Bob Dylan and no more furiously than now.  As we all wait for the next shoe to drop we would like to make you aware of the newest piece of legislation out from Washington that will impact you and your business.  The Coronavirus Response bill mandates payments to employees with paid sick leave regardless of how long they have worked.  Below are the facts of the bill.  Know that this applies to all employers with fewer than 500 employees.

 

National Paid Sick Leave Related to COVID-19 (Amount to be offset by tax credits)

Private-sector employers with fewer than 500 employees, and public-sector employers in general, are required under the Coronavirus Response Act to provide employees, regardless of how long they have worked for their employer, with paid sick leave if any of six situations occur.

 

Group 1

(rate is the employee’s regular rate of pay – cannot exceed $511 a day and a total of $5,110)

  1. A federal, state, or local quarantine or isolation order related to COVID-19 has limited the employee’s ability to travel
  2. A health-care provider advised the employee to self-quarantine because of concerns regarding COVID-19
  3. The employee is experiencing symptoms associated with COVID-19 and is in the process of determining whether he or she has contracted the virus

 

Group 2

(rate is the 2/3 the employee’s regular rate of pay – cannot exceed $200 a day and a total of $2,000)

  1. The employee is caring for someone who is subject to a governmental quarantine or isolation order for COVID-19 or whose health-care provider advised that person to self-quarantine because of COVID-19
  2. The employee needs to care for his or her child because of the closure of the child’s school or child-care facility, or the unavailability of a child-care provider, because of COVID-19 considerations
  3. The employee is experiencing a situation that was specified by the Department of Health and Human Services as substantially similar to any of the five aforementioned situations.

Employers would be required to provide employees with notice of the availability of this leave. The Labor Department is to create a model notice for this leave by the seventh day after the enactment of the measure. Electronic delivery of this notice is anticipated

 

FMLA Expansion, Paid-Leave Components

After 10 days of unpaid leave, a period of paid leave would follow for employees who need to care for children younger than 18 whose school or child-care facility is closed because of the virus or whose child-care provider is unavailable because of the outbreak.

The amount of paid leave per day generally would need to be at least two-thirds of the employee’s regular rate of hourly pay. The maximum amount payable per day would be $200 and the total amount payable to an employee for public health emergency leave cannot exceed $10,000.

The Labor Department would be granted authority under the measure to exempt employers with fewer than 50 employees from the requirements of section 5102(a)(5) when the imposition of such requirements would jeopardize the viability of the business as a going concern. We are watching this closely and will notify all clients as soon the Labor Department releases information around this.

Public health emergency leave is available to all employees who have worked for their employer for at least 30 days, regardless of how many hours of work they performed during their period of employment, and who need to take care of their child at home because of the virus.

Employees would be able to substitute days of accrued vacation leave, personal leave, or medical or sick leave for the initial period of 10 days of unpaid public health emergency leave. Employees would need to provide notice to their employer to take the leave.

 

Payroll Tax Credits

The employer portion of Social Security tax (but not Medicare) due would be able to be reduced by the amount of paid sick leave related to COVID-19 provided to employees and the amount of paid public health emergency leave provided to employees under the amended FMLA.

  • If the amount of the credit exceeds the amount of the employer’s portion of Social Security tax due for the quarter, the employer could have the excess treated as a refundable overpayment.
  • The credit can be increased by the amount of the employer portion of Medicare tax due on payments of paid sick leave related to COVID-19 and payments regarding paid public health emergency leave.
  • The amounts of these credits also can be increased by the amount of the employer’s qualified health plan expenses for employees receiving this paid sick leave, helping employers maintain health coverage for these employees.

Payments for paid sick leave related to COVID-19 and paid public health emergency leave under the amended FMLA are themselves not subject to the employer portion of Social Security tax.

At this time the mechanics/exemptions/applications/details etc. of how and when this Act will be implemented are still being developed.   The language from the bill on the effective date is as follows: This Act shall take effect not later than 15 days after the date of enactment of this Act

We are monitoring this very carefully please do not hesitate to contact us if you have any questions

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