Small business owners and leaders must stay informed about the evolving landscape of overtime regulations. In this guide, we’ll delve into the recent changes, their significance, and essential steps to prepare your business. What Are the New Overtime Rules? The U.S. Department of Labor (DOL) has revised overtime pay regulations, primarily focusing on the salary threshold. This threshold determines which employees qualify for overtime pay when they exceed 40 hours per week. Why Do These Changes Matter? The updated rules can substantially impact payroll costs and workforce management strategies. Employees previously exempt from overtime may now fall under the new…
Businesses significantly impacted by COVID 19 have the opportunity for payroll tax credits (and potential refunds) of up to $33,000 per employee for the combined years of 2020 and 2021. This new opportunity comes as several pieces of federal legislation put into place over the last 12 months amended and strengthened the original program. Congress created the Employee Retention Tax Credit (ERC) as part of the CARES Act, one of the earliest COVID relief bills signed into law on March 27, 2020. Another part of the same legislation is the Paycheck Protection Program (PPP). When the CARES Act was signed…
On Wednesday, November 18, 2020 the IRS released guidance regarding the deductibility and timing of covered expenses that resulted from the use of funds provided through the Paycheck Protection Program. The guidance, in part, reads “If a business reasonably believes that a PPP loan will be forgiven in the future, expenses related to the loan are not deductible, whether the business has filed for forgiveness or not.” The guidance includes links to a related revenue ruling and revenue procedure. In the revenue ruling, the Service states “A taxpayer that received a covered loan guaranteed under the PPP and paid or incurred certain otherwise deductible expenses…
On June 5, 2020 the President signed the Paycheck Protection Program Flexibility Act into law. The act modified the PPP forgiveness process and provided some much anticipated relief to business owners. On June 16, 2020 the Small Business Administration released amendments to the forgiveness application and instructions. At the same time, a new EZ forgiveness application and instructions were also released. Paycheck Protection Program EZ Loan Forgiveness Application (Released June 16, 2020) Paycheck Protection Program EZ Loan Forgiveness Application Instructions (Released June 16, 2020) Paycheck Protection Program Loan Forgiveness Application (Revised June 16, 2020) Paycheck Protection Program Loan Forgiveness Application…
Now that you have your Paycheck Protection Program loan, what steps should you take to ensure you receive the forgiveness you expect from your bank and the SBA? We created this two-part article as a resource to assist you with the forgiveness process. Part one of the article focuses on the process and steps you might consider implementing to manage the forgiveness process. Part two contains a summary of requirements borrowers must meet to obtain forgiveness. This section also includes a link to the Loan Forgiveness Application and related instructions. The application, released late on Friday, May 15, 2020, goes…
You may have questions related to the Paycheck Protection Program (PPP) loans and forgiveness process. Included here are some of the direct links that may provide you with answers to some of your questions. HCP will work to keep this list updated as new information becomes available. We will also be posting a summary article in the next 2-3 days that will address many of the common questions related to the PPP forgiveness process. Paycheck Protection Program EZ Loan Forgiveness Application (Released June 16, 2020) Paycheck Protection Program EZ Loan Forgiveness Application Instructions (Released June 16, 2020) Paycheck Protection Program…
