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Below are just a few updates from the last few days that effect the SMB community: On Saturday, Trump issued an Executive Order and 3 Memoranda (collectively Executive Orders) with 2 significant impacts on small business Payroll Tax Deferral The Tax Memorandum directs the deferral of withholding, deposit and payment of the employee portion of the social security tax starting 9/1 through year end The main issue is that only Congress can forgive the deferred payments which means we are still on the hook if they don’t As some of you know, I lived in Delaware for a year during my banking days and the slogan was “It’s Good to be First”…a tribute to DE being the nation’s first state. Our guidance is to avoid that approach completely and hold tight until we get formal guidance from Treasury and the IRS. Your payroll provider also has to navigate this conundrum so stay close to their updates as well Unemployment insurance benefits The memo includes a federal funded $300 a week enhancement as well as a call on the states to provide another $100 a week, which is optional Several states have already opted out of the additional $100 benefit Treasury Secretary Mnuchin said he believed they could start rolling out the additional federal payments in 2 weeks Based on the $$ amount and the run rate, it’s estimated this federal benefit could be funded for roughly 6 weeks PPP Forgiveness The SBA Portal opened yesterday to begin accepting PPP forgiveness applications Many lenders including some of the nation’s largest are waiting on additional guidance from the SBA and will not process them until later this month or into September Your lender will communicate to you what their stance is and timing There are pros and cons in applying for forgiveness now, but there is proposed legislation that would impact the program and that’s what we are advising our clients on
Below are just a few updates from the last few days that effect the SMB community: