From our Friends at Davis & Hodgdon CPAs

COVID-19 Resources for Your Business and Tax Questions

The COVID-19 pandemic has caused serious anxiety and resulted in many challenges for Vermonters.

There is a plethora of information and new resources that are becoming available every day. With all of this noise, it can be so hard for us to know what to focus on. In an effort to assist you and connect you with the general tax and business-related information that is most relevant to you, we are gathering the latest articles along with curated lists of resources.

The CARES Act

Tax aspects of the CARES Act:

• https://www.forbes.com/sites/anthonynitti/2020/03/25/congress-reaches-agreement-on-a-coronavirus-relief-package-tax-aspects-of-the-cares-act/#91d12c25f998 

The CARES Act: Healthcare, Benefits, Retirement, Business Provisions:

• https://www.shrm.org/hr-today/public-policy/Documents/SHRM%20Analysis%20CARES%20Act%20-%20Employer%20Provisions.pdf

Income Tax Issues 

The deadlines for federal and Vermont tax filing have been moved to July 15 and this has an impact on several other tax-related issues including quarterly estimate payments as well as IRA and HSA contributions. See the links below for more information.

IRS Coronavirus Tax Relief:

• https://www.irs.gov/coronavirus

Federal and State Due Dates and Payment Dates

• https://www.dh-cpa.com/federal-and-vermont-tax-deadlines-extended.html
• IRS Q&A: https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers#collapseCollapsible1585070689109

Change a Scheduled Payment to New July Due Date:

• https://www.dh-cpa.com/irs-guidance-change-a-scheduled-payment-to-new-july-due-date.html

Vermont Dept. of Taxes Coronavirus Updates

• Regular Coronavirus Updates: https://tax.vermont.gov/coronavirus
• Vermont tax relief FAQ: https://tax.vermont.gov/sites/tax/files/documents/FS-1272.pdf

SBA Disaster Assistance Loans

The SBA Disaster Assistance Program for COVID-19 will be an Economic Injury Loan. The Loan program provides small businesses of any size with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.

• Apply for this loan here: https://disasterloan.sba.gov/ela/
• Sample application to view what documentation is needed: Click here
• Small business guidance and loan resources: https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources
• Eligible SBA lenders in Vermont: https://www.sba.gov/offices/district/vt/montpelier/resources/vermont-participating-lenders

Families First Coronavirus Response Act (FFCRA)

The FFCRA provides several responses to address the ongoing coronavirus pandemic including leave for employees affected by coronavirus through the Emergency Family and Medical Leave Expansion Act (EFMLA) and the Emergency Paid Sick Leave Act (EPSLA). The FFCRA also provides refundable tax credits for employers providing the required paid family and sick leave to employees in connection with this public health emergency.

General Guidelines

• What should we do first? https://www.bmdllc.com/resources/blog/ffcra-signed-into-law-what-should-we-do-first-with-tax-insights-from-apple-growth-partners/
• Paid leave requirements: https://www.dol.gov/agencies/whd/pandemic/ffcra-employer-paid-leave
• What the FFCRA bill means for small business owners and the self-employed:https://www.marketwatch.com/story/what-the-family-first-coronavirus-relief-bill-means-for-small-business-owners-and-self-employed-people-2020-03-21
• FFCRA Employer Paid Leave Requirements: https://www.dol.gov/agencies/whd/pandemic/ffcra-employer-paid-leave

Employer Cheat Sheet for the Leave Requirements

• https://www.agdglaw.com/FFDBF8/assets/files/Documents/Cheat%20Sheet%20for%20March%2020%202020%20Employment%20Alert.pdf

Reimbursement for Businesses

• https://content.govdelivery.com/accounts/USIRS/bulletins/2826044
• https://www.awfs.org/2020/03/business-credits-for-the-families-first-coronavirus-response-act/

Should my business consider layoffs before the new law comes into effect?

• https://www.dh-cpa.com/ffcra-compliance-consideration-of-layoffs.html

FFCRA poster for employers:

• https://www.dol.gov/sites/dolgov/files/WHD/posters/FFCRA_Poster_WH1422_Non-Federal.pdf

General Business Issues

Unemployment Benefits Eligibility FAQs:

• https://labor.vermont.gov/covid19/covid-19-frequently-asked-questions

Guidance for Vermonters Who Owe Meals and Rooms Tax or Sales and Use Tax

• The Vermont Department of taxes will provide some relief to Vermont businesses who owe Meals and Rooms Tax or Sales and Use Tax: https://tax.vermont.gov/press-release/upcoming-vermont-tax-due-date-guidance

Small Business COVID-19 Response Checklist

• Organized into 4 categories: Manage and Plan Cashflow, Debt Options, Employment Ideas, Tax Law Changes: https://www.biggskofford.com/updated-march-23-covid-19-small-business-response-checklist/

Stay Home/Stay Safe FAQ for Business Owners

• https://accd.vermont.gov/covid-19-guidance/stay-home-stay-safe-business-faqs

COVID-19 Small Business Resource Hub

• https://covidresources.gusto.com/?utm_source=cpapracticeadvisor&utm_medium=paid&utm_campaign=mar20-email-blast-2

COVID-19 Guidance for Vermont Businesses (Vermont Agency of Commerce and Community Development)

• https://accd.vermont.gov/about-us/disaster-planning/covid-19-guidance-vermont-businesses

Other links

• VBSR Webinar Series: Coronavirus Response Resources for Businesses: https://vbsr.org/vbsr-resources/planning-preparing-for-covid-19/
• Business Insight for COVID-19 including webcasts: https://rsmus.com/economics/coronavirus-resource-center.html
• Steering your budget amid coronavirus uncertainty: https://www.fm-magazine.com/podcast/budgeting-agility-amid-coronavirus-uncertainty.html