Dear Clients and Friends,
At William Vaughan Company, the health and safety of our employees, clients, and community is of paramount importance. We recognize the ongoing impact of the Coronavirus, and are focused on how we can best protect our clients and staff while continuing to providing exceptional service to the community.
We have continuously invested in technology, and as a result, have the ability to exchange information and perform a significant portion of our work remotely. I would encourage all of you to be proactive about the use of technology when working with us during this uncertain time.
While it’s still difficult to predict the full extent of the impact of COVID-19, we are closely monitoring this rapidly evolving situation. As part of our commitment to our clients, we would like to share the following resources with you to offer guidance on minimizing the impact on you and your business. If you have questions, please contact your William Vaughan Company advisor.
Paycheck Protection Program (PPP) FAQs
This section is intended to provide an overview of our understanding of the answers to commonly asked questions regarding the Paycheck Protection Program.
This section is currently being updated per the updated guidance from the SBA on 5/22. Please check back soon.
The CARES Act
Friday, March 27, 2020, President Trump signed a bipartisan relief bill entitled the “Coronavirus Aid, Relief, and Economic Security Act” or the CARES Act. The $2 trillion coronavirus response bill is intended to provide relief across America and to keep businesses and individuals afloat during the unprecedented freeze on most American life.
Other Resources & Guidance
The key resource for national information on the spread of COVID-19, what you can do to protect yourself, and what to do if you get sick.
For tips on how you can prevent and prepare your employees along with links and checklists for taking action.
For information on coronavirus and unemployment insurance benefits. Employers can distribute this Mass Layoff Instruction Sheet to their employees laid off because of the COVID-19 pandemic to expedite their claim process.
Beginning Monday, April 20, the U.S. Chamber of Commerce Foundation will launch its “Save Small Businesses Fund,” a nationwide program to address small businesses’ immediate needs, mitigate closures and job losses and mobilize support for long-term recovery. The Foundation will provide $5,000 supplemental grants to small employers in economically vulnerable communities based on the Distressed Communities Index. Click here for more information.
The SBA is working directly with state Governors to provide targeted, low-interest loans to small businesses and non-profits that have been severely impacted by the Coronavirus (COVID-19)
The IRS has established a special section focused on steps to help taxpayers, businesses and others affected by the coronavirus. This page will be updated as new information is available.
- Restaurant Employee Relief Fund
- The Ohio Restaurant Association is posting memos, recommendations, updates and news on a special page on their website.
- The Ohio Department of Commerce will immediately begin offering a one-time liquor buyback option to support bars and restaurants. Click here for more information.
- Keeping Your Restaurant Afloat During the Coronavirus Pandemic
Trucking & Transportation
- ODOT: Special Blanket Permit for Haulers – In an effort to assist in the state’s response to the COVID-19 outbreak, the Ohio Department of Transportation has approved a special blanket permit for haulers carrying heavy or oversized loads of food, non-alcoholic beverages, medical supplies, cleaning products, and other household goods.
NEW WVC Loan Forgiveness Calculator
Thursday, June 4 from 2:00pm – 3:00pm EST
The impact of the COVID-19 pandemic has been far-reaching. As federal, state, and local governments contemplate the best ways to gradually lift lockdowns, many organizations are beginning to shift their strategic focus to the restart of their operations. Understanding and maximizing PPP loan forgiveness and having the right tools to plan your recovery are top of mind.
On May 15, the SBA released its Loan Forgiveness Application for the Paycheck Protection Program. The application outlines the computation for debt forgiveness. While there are still many questions that need to be addressed, the guidance helped clarify some larger items. Click here for more details
On April 30, 2020, the IRS released Notice 2020-32 (the Notice) answering a major tax question involving the Paycheck Protection Program (PPP). It ruled that any deductible expenses that result in forgiveness of a PPP loan will not be deductible in computing the taxpayer’s income. This conclusion contradicts the language in the CARES Act (the Act) under Section 1106(i) which states the cancellation of indebtedness of a PPP loan, under the provisions of Section 1106(b), “shall be excluded from gross income” in computing the taxpayer’s taxable income.
To read full Notice, click here
The U.S. Treasury has confirmed businesses can defer paying the employer’s portion of Social Security taxes, even after applying for and receiving a PPP loan without incurring failure to deposit and failure to pay penalties. Companies who have received a PPP loan can defer payment of the employer’s portion of Social Security tax that otherwise would be required to be made beginning on March 27, 2020, through the date their PPP lender issues a decision to forgive the loan. Once the company receives a decision from its lender that its PPP loan is forgiven, the company is no longer eligible to defer deposit and payment of the employer’s share of Social Security tax due after that date. However, the amount that had previously been deferred through the date that the PPP loan is forgiven continues to be deferred and will be due as follows:
- 50% of the deferred amount on December 31, 2021; and
- The remaining amount on December 31, 2022.
The U.S. accounting standard-setter, the Financial Accounting Standards Board (FASB) has proposed implementation delays of rules on revenue recognition and leases. The board will regroup in May to discuss and make a final decision. Stay tuned…
To read more about the proposed delay, click here.
Ohio Governor Mike DeWine has asked the Ohio Bureau of Workers’ Compensation (BWC) to send up to $1.6 billion to Ohio employers this spring to ease the economic impact of COVID-19 on Ohio’s economy and business community. This dividend equals approximately 100% of the premiums employers paid in policy year 2018. For additional information, click here.