Economic Impact Payment & CARES Act

New Paying and Filing Deadline - July 15th
The IRS, OR and the City of Portland have moved the filing and paying deadline from April 15th until July 15th. This included paying, filing, HSA & IRA contributions, 1st Quarter Estimates (IRS only) and other deadlines. Oregon and City of Portland have NOT changed 1st quarter estimate, it is still April 15th. Not all states are following exactly in line with the IRS. Please click the link to find out who is and who isn't. April 15th - New Deadlines

Unemployment, Self-Employed Relief & Portland Small Business Relief Fund
The CARES act was signed into law on March 27, 2020 and will expand Unemployment Insurance benefits. Link
In the near future, they will provide guidance to customers on the:

• Federal Pandemic Unemployment Compensation weekly benefit of $600
• Benefits for self-employed individuals, including those working in the "gig" economy
• Expansion of unemployment benefits for individuals whose benefits will soon expire
• Benefits for individuals unable to start new work because of the pandemic

The Portland Small Business Relief Fund will provide grants and no interest loans to support Portland small businesses experiencing hardships related to COVID-19. Link

Economic Impact Payment
Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible.
Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples. Parents also receive $500 for each qualifying child.
Economic impact payments: What you need to know

Employee Retention Credit 
 IRS: Employee Retention Credit available for many businesses financially impacted by COVID-19 Link

• The Treasury Department and the IRS launched the Employee Retention Credit, designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19. 

FAQs: Employee Retention Credit under the CARES Act Link

• The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted on March 27, 2020, is designed to encourage Eligible Employers to keep employees on their payroll, despite experiencing economic hardship related to COVID-19, with an employee retention tax credit (Employee Retention Credit). 

 
Families First Coronavirus Response Act
 Treasury, IRS and Labor announce plan to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing Coronavirus-related leave Link

• The Families First Coronavirus Relief Act (FFCRA) requires certain employers to pay sick or family leave wages to employees who are unable to work or telework due to certain circumstances related to COVID-19. Employers are entitled to a refundable tax credit for the required leave paid, up to specified limits. [See FAQs]. The same wages cannot be counted for both credits. 

• Two sets of FAQs: 

1. FAQs from the U.S. Department of Labor, Wage and Hour Division: DOL Families First Coronavirus Response Act: Questions and Answers. Link
 2. FAQs from the IRS: COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs Link
  
Employers 
 See FAQ #6 on this page: Link 

• Q6. Does the relief provided in the Notice apply to payroll or excise taxes? 

• A6.  No, under the Notice, normal filing, payment, and deposit due dates continue to apply to both payroll and excise taxes. (See exception in Notice 2020-22.)

Relief from Penalty for Failure to Deposit Employment Taxes 

• Notice 2020-22 provides a waiver of additions to tax for failure to make a deposit of taxes for employers required to pay qualified sick leave wages and qualified family leave wages mandated by the Families First Coronavirus Response Act (Families First Act) and qualified health plan expenses allocable to these wages.  

• This notice also provides a waiver of additions to tax for failure to make a deposit of taxes for certain employers subject to a full or partial closure order due to the coronavirus disease 2019 (COVID-19) or experiencing a statutorily specified decline in business under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).  

• Please see Notice 2020-22 for more details.

 
 Assistance For Businesses 
The SBA can help! Link
 Two SBA emergency capital programs are available today and more will be coming soon:

1. Low interest, long term Economic Injury Disaster Loans for up to $2 million: The first payment is deferred for 12 months. The application has been simplified and can be completed 100% online through our improved web portal at  www.sba.gov/disaster. 
2. Economic Injury Disaster Loan Advance for up to $10,000: The form to apply is part of the economic injury disaster loan application. If approved, these funds can be used for payroll and other operating expenses and will be forgiven. 

Soon the SBA and Treasury Department will launch the new Paycheck Protection Program to help keep employees on payroll and small businesses operating. Additional information about this program will be shared in the coming days. Link
 Find your local SBA office here. Link