PPP Flexibility Act

Some Good News – PPP Flexibility Act

By | Announcements, Financial Impact

There is some good news regarding the Paycheck Protection Program (PPP) As you may know, the initial rollout of the program was rocky and some provisions of the program were criticized by businesses as not doing enough to help. In an effort to address these issues and increase the program’s impact, Congress has passed, and the President signed into law, the Paycheck Protection Program Flexibility Act (PPP Flexibility Act).

The changes will make it easier for many borrowers to obtain forgiveness of PPP loans. Two of the biggest improvements are the extension of the time for using loan proceeds, and an increase in the percentage of loan proceeds that can be used for expenses other than payroll.

The PPP Flexibility Act extends the timeframe (i.e., the covered period) in which PPP funds must be used in order to have the loan forgiven. The covered period, which was originally eight weeks, has been expanded to 24 weeks (but ending no later than December 31, 2020).

The PPP Flexibility Act also allows borrowers to spend up to 40 percent of loan proceeds on nonpayroll costs such as rent, utilities, and interest on mortgages, rather than the 25 percent that was initially specified. The improvement, however, comes with a catch: borrowers who use more than 40 percent of the loan proceeds for nonpayroll costs are now ineligible for loan forgiveness altogether.

Another favorable change was made to the time in which borrowers have to begin repaying a loan that doesn’t qualify for forgiveness. That time period is now five years rather than two years.

With respect to the reduction in the amount of a loan that may be forgiven where an employer reduces employee headcounts or wages, a new exemption has been created for businesses that are unable to rehire employees (or hire replacements) or to return to their same level of business activity as before the COVID-19 pandemic as a result of compliance with federal health and safety guidelines.

Other changes in the PPP Flexibility Act include:

  • A revision to the six-month deferral period that allows borrowers to defer payments until they receive compensation for forgiven amounts, and for those that don’t apply for forgiveness, extending the time to begin making payments to 10 months from the program’s expiration;
  • The elimination of a provision that made a paycheck protection loan recipient who had PPP debt forgiven ineligible to defer payroll tax payments.
  • If you have received a PPP loan and would like more information on these changes or need help with assembling the numbers for a PPP loan forgiveness application, please don’t hesitate to get in touch with us.

If you have any questions, contact us or schedule an appointment.

Updated Tax Due Dates

Tax Return Due Dates for 2020

By | Taxes

Tax Return Due Dates:

Due to Covid-19 federal tax filing and payment deadlines from April 1, 2020, to July 14, 2020, were postponed to July 15, 2020. The postponements are automatic and apply to all taxpayers.

If you have not filed your returns yet, then please send us all of your tax documents and we will prepare the returns in order to meet the July 15th deadline. In order to insure we have enough time to prepare and process your returns please have all of your documentation to us by June 30, 2020. You can drop off your documents at our office, mail, email or upload everything to the portal. Instructions for using the portal are on our website, but please fee free to give us a call for assistance.

We will file extensions for all individual and business taxpayers who need additional time to file beyond the July 15 deadline. The extended due date will be October 15, 2020. Remember this extension is an extension to file and not an extension to pay the tax owed. Taxpayers requesting additional time to file should estimate their tax liability and pay any taxes owed by the July 15, 2020, deadline to avoid additional interest and penalties. Once we have your documents we can assist in the preparation of the estimated tax.

This relief is also available to estimated quarterly tax payments. Any individual or corporation that has a quarterly estimated tax payment due on or after April 1, 2020, and before July 14, 2020, can wait until July 15 to make those payments, without penalty.

Summary Update on PPP Loan Forgiveness:

  • Current borrowers have the option to extend the 8-week period to 24 weeks after the loan proceeds are received or 12/31/2020 whichever is earlier;
  • The 75% payroll requirement is reduced to 60%;
  • Opportunity to avoid FTE or Salary/Wage reduction penalties if headcount or salary/wages are restored by December 31, 2010 instead of June 30, 2020.

Have Questions About Your Taxes?

Schedule a Consultation with LKP Group and we’ll ensure you get your questions answered and your needs addressed.

Important Covid-19 Updates that Impact Finance

Covid-19 Coronavirus Updates That Impact Finance

By | Financial Impact

As the coronavirus (COVID-19) continues to affect local communities and global economies, you may have concerns about your financial well-being. Or you may be wondering about how recently passed legislation impacts you. We’re providing a high-level summary of some of the key provisions impacting individuals and businesses.

Read More

Disaster Relief Resources

By | Accounting-tips

On this webpage, we aim to keep updated information about the SBA Disaster Relief and other important updates you may be interested in.

For more information about SBA Disaster Loans, be sure to call your bank. Also visit https://sba.gov/disaster

For more information about Paycheck Protection, be sure to contact your payroll service provider. (ADP, Paychecks).

Additional Information

Download the CARES Act Chart Below.

CARES Act Chart

Know Your Options for Filing Your Taxes

Options For Filing Your Taxes

By | Taxes | No Comments

LKP Group provides several options for you to submit your 2019 tax information:

#1) Electronic Organizers:

Electronic organizers have been uploaded to your secure portal at https://lkpgroupcpa.securefilepro.com/

You should have received an email informing you of the upload with a link to sign in. If you are having any issues logging into the site or have not received an email and would like to log in via the portal, please call (904-694-4272) or email us at info@lkpgroupcpa.com.

Once you log into your secure portal all you need to do is complete the Organizer, scan and upload all of your tax documents. We will receive notification that you have uploaded your information and we will begin to work on your return. 

Here is a link containing videos on how to download and/or upload your documents. http://tiny.cc/9xpyiz.

SecureFilePro (Electronic) is the most efficient way to get us your information as soon as possible. The earlier we receive your documents, the sooner your return will be completed as we get very busy as we get closer to the deadline.

#2) Paper Organizers:

Paper organizers are being mailed to clients that have indicated this as their preference. If you would like a paper organizer and have not received it by January 28th, 2020, please notify by calling (904-694-4272) or emailing us at info@lkpgroupcpa.com

Once you have all of your documentation together you can either email, mail, drop off or call and schedule an appointment to come in for your tax preparation.

Important Date:

In order to ensure we have adequate time to prepare your return accurately we, need to receive all the necessary information to complete your return no later than March 25, 2020. If we do not receive everything by this date, we will file a six-month extension on your behalf. Also, note that payment is due when your return is delivered.

Corona Virus Impact on Business

How Coronavirus Could Impact Your Business & What You Can Do About It

By | Accounting-tips | No Comments

Coronavirus is taking a toll on individuals, business and their employees. At LKP Group we continue to move forward and serve our clients and ensure everyone’s taxes are prepared and timely filed. If you need assistance with your taxes, please be sure to schedule an appointment.

We have options to file your taxes and can either schedule an appointment by phone or online conference. You can mail, email, upload or drop off your tax documents in and we will schedule a call or virtual conference.

Florida small businesses impacted by the Coronavirus (COVID-19) may now apply for short-term, interest-free loans through the Florida Small Business Emergency Bridge Loan program.

The purpose of the loan program, which was activated March 17th, 2020 by Governor DeSantis, is to help business owners bridge the gap between the time the economic impact occurred and the business secures other longer-term resources, such as insurance proceeds or federal disaster assistance through the U.S. Small Business Administration (SBA).

Through the program, qualified small businesses with two to 100 employees affected by COVID-19 can apply for loans up to $50,000 for one-year terms. To be eligible, a business must be located in Florida, have been established prior to March 9, 2020, and demonstrate economic injury as a result of the virus.

To complete a bridge loan application by the May 8, 2020 deadline, and for more information about the program, please visit www.floridadisasterloan.org. The state is also working diligently to make an online application available.

As a principal responder in the state’s Emergency Support Function (ESF) 18 for Business & Industry, the Florida SBDC Network continues to monitor guidance from officials for developments, recommendations, and resources to develop a plan that will support your small business during this challenging time.

Business Damage Assessment Survey — We strongly encourage small businesses impacted by the Coronavirus (COVID-19) to complete the Business Damage Assessment Survey to Determine Need for COVID-19 Federal, State Disaster Assistance. The survey, administered by the Florida Department of Economic Opportunity (DEO), is not an application for disaster assistance, but rather assists state officials in determining the extent of impact and need for federal and state disaster assistance. Complete the survey here: Business Damage Assessment Survey.

Here are additional links to resources for your small businesses.

STATE RESOURCES:

Florida Department of Health Covid-19
Information and guidance regarding COVID-19 in Florida.
For questions related to COVID-19 in Florida, individuals and business can contact the Florida Department of Health dedicated COVID-19 Call Center by calling (866) 779-6121. The Call Center is available 24 hours a day. Inquiries may also be emailed to COVID-19@flhealth.gov.

FloridaDisaster.Biz
Information regarding business preparedness, recovery, online training, links and news. When activated, houses the Florida Business Damage Assessment.
During an activation of the State Emergency Operations Center (SEOC), the Florida Private Sector Hotline will be activated.

Florida Private Sector Hotline: 850-815-4925
Email: ESF18@em.myflorida.com

For information about Emergency Support Function 18 (Business, Industry and Economic Stability) and Florida’s Public Private Partnerships, please email ESF18@em.myflorida.com

Florida Chamber Follow Facts, Not Fear
The Florida Chamber is the official state chapter of the National Safety Council. This webpage includes important links from Governor DeSantis’ office, the Emergency Operations Center, Centers for Disease Control, Florida Department of Health and our partners at the U.S. Chamber of Commerce and it will be updated regularly.

FEDERAL RESOURCES:

Center for Disease Control Interim Guidance for Businesses and Employers
Provides detailed planning considerations and recommended strategies for employers to use now.

OSHA Guidance on Preparing Workplaces for COVID-19
U.S. Small Business Administration Emergency Preparedness and Disaster Assistance
These resources can help small businesses develop a plan to protect their employees, lessen the financial impact of disasters, and re-open for business quickly to support the economic recovery of the community.

FEMA.gov News Releases
FEMA Mobile App – Receive severe weather alerts, driving directions to disaster recovery centers, save a custom list RE emergency kit and meeting spot, tips to stay safe for over 20 types of hazards.

U.S. Chamber of Commerce
The U.S. Chamber is working closely with the White House, U.S. government agencies, and foreign government officials to inform and equip businesses with the most important and up-to-date information to ensure we are all adequately prepared to protect Americans at home and abroad. The website provides great resources for all businesses, including small businesses.

PREPAREDNESS TOOLS:

Comprehensive and customized business disaster preparedness planning information, materials and training videos

Ready.gov/business

Disaster Resistant Business (DRB) Toolkit

PrepareMyBusiness.org

Please know we remain committed to assisting you and will continue our focus on delivering the services you depend on in a manner consistent with the health and well-being of our clients and our team.