Landmark Tax Group - July 2020

Landmark Tax Group - July 2020

Landmark Ledger Support Options for Small Businesses

(949) 260-4770 Professional | Experienced | Licensed Expert IRS & State Tax Relief

July 2020

Economic Injury Disaster Loan The Coronavirus Aid, Relief, and Economic Security (CARES) Act is expanding Economic Injury Disaster Loan (EIDL) provisions to help entrepreneurs and small businesses function through the pandemic. While the package offers a maximum of $2 million in financial support, specific loan amounts are determined by the level of economic damage the business is suffering. Those in dire need of financial assistance right now can apply for a loan advance of up to $10,000 from the Small Business Administration; this advance will not have to be repaid in the future. The funds provided by these loans do not come with as many restrictions as PPP loans, but it’s important to remember that you cannot use the funds to refinance any preexisting debt or to pay dividends. Employer Tax Credits Some companies experiencing a fallout from the pandemic may qualify for two new tax credits: leave for sick family members and the Employee Retention Credit. Employees who are experiencing COVID-19 symptoms, or whose family members are suffering from the disease, are entitled to 80 hours of paid sick leave. The employee’s wage should be similar to their standard pay or up to $511 per day (whichever is higher). Businesses can also claim an Employee Tax Credit of $5,000 per employee, which includes the employee’s wages and health plan expenses. Like many tax-related topics, determining if you’re eligible for loans or relief funds can be difficult to figure out. Make sure you’re working with a seasoned credit and tax professional to get the help you need through this difficult time. Call us anytime at (949) 260-4770 or visit our website at LandmarkTaxGroup.com to learn more.

Right now, many individuals and businesses are

struggling to find relief, and some are unable to pay for necessities.

In response, the government is rolling out aid plans. To see if you quality and ensure you get the help you need, here is what you need to know. Economic Impact Payments Economic impact payments are being automatically sent to most taxpayers. Qualifying individuals — those who make $75,000 or less per year — will receive up to $1,200 and joint filers can receive up to $2,400; both single and joint filers receive $500 per child. Those who make more than $75,000 per year may receive a smaller payment or nothing at all. Those who don’t file or have no income can receive aid by using the nonfiler tool on IRS.gov. Paycheck Protection Program (PPP) This program provides more than $300 billion in forgivable loans to small businesses to maintain their staff. The loan can be forgiven if companies use it directly to pay for employee wages, rent, and utilities over the loan’s eight-week period. However, staffing costs are capped at $100,000 per employee, and no more than 25% of the amount can be used to cover nonpayroll expenses. It’s important for business owners to note that even for the loans that are not forgiven, payments are being deferred for six months. Since the beginning of May, many different kinds of businesses with 500 or fewer employees have been applying for this loan, including nonprofits, sole proprietorships, independent contractors, and self-employed individuals. However, smaller organizations in the hotel and food-service industries are exempt from the 500 employee limitations.

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Make Your Game Nights Extra Special

With a Family Entertainment Room

Soundproof your space. Trying to impress your guests with great sound doesn’t mean that your entire neighborhood has to hear what you’re watching! Soundproofing not only helps shield your neighbors from action game explosions and booming movie scores, but it also improves the sound quality in the room. Thick curtains and carpets, wall-mounted foam panels, or

Families around the world are finding new ways to spend time with each other, and their homes are changing accordingly. Whether your family members are video gamers, movie enthusiasts, or board game fans, everyone can benefit from having a dedicated entertainment room. Here are some tips for putting one together. Use your space wisely. Consider the advantages and challenges of your available space. You don’t want small spaces to feel cramped, and you don’t want large spaces to feel empty. If your room is small, then design the space to serve multiple purposes, like installing a bar with a TV on the opposite wall. If your room is large, then why not have two or more TVs to let visitors play multiple games or watch different shows? A projector can also be used to maximize a room’s space. It allows you and your guests to utilize an entire wall without requiring much physical space. Set up surround sound. Whether you’re using your entertainment room for movies, music, video games, or all of the above, investing in high-quality speakers will pay off instantly. You can set them up around the room for clearer, more immersive sound for movies and games, and by spacing out each speaker, you can eliminate cord clutter and tangle.

freestanding acoustic panels work for basic soundproofing, but if you plan to utilize your space every day and night, then consider hiring a contractor to help estimate materials and cost for a more sophisticated soundproof space. Have great lighting. There’s nothing more inviting than a well-lit space, and this also applies to your entertainment room. Whether you’re playing a board game or putting together puzzles with the whole family, mood lighting can make the experience feel even more cozy and special. Try experimenting with different, stylish lamps or overhead fixtures to light up your space.

Ensure You’re Not Saddled With Long-TermDebt

3 ACTIONS TO GUARANTEE YOUR PPP LOAN IS FORGIVEN

As companies are recovering from COVID-19, some are utilizing the Paycheck Protection Program (PPP). If you own a qualifying small businesses, then it is of the utmost importance that you follow the guidelines for spending the money so that you don’t have to repay it in the future. Use at least 75% for payroll. If your staff are traditional, full-time employees, then this is relatively simple. However, if your business relies on gig employees or contractors, temporarily converting them to full-time employees for the loan’s term may be the best way to disperse the funding. Rehire your employees. Bringing your workforce and payroll totals back to pre-COVID-19 levels has been

a PPP forgiveness requirement from the start. Be sure personnel and compensation are reinstated correctly to help increase the chance of your lender granting forgiveness. Document all your expenses. After the loan funds hit your bank account, you need to start documenting what you spend them on. After the eight-week term is up, gather all your financial >Page 1 Page 2 Page 3 Page 4

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