COVID-19 Help

Accounting for Coronavirus

The greatest weapon against COVID-19 is knowledge.

Life is very different right now. The COVID-19 outbreak demands we re-evaluate how we live and how we work. We are taking extra care to keep ourselves, our families and our neighbors safe.

This page is dedicated to providing useful resources, helpful links, and the latest news to navigate through the financial devastation resulting from the Coronavirus.

We are closely following the developments related to the workplace and will share new information here as it becomes available.

If you have financial questions related to COVID-19 relief, call us. We have a Concierge Team of experts ready to help. Email your questions to Sandra@lbgcpas.com. Be sure to put “COVID-19 Assistance” in the subject line. We are happy to help!

Meanwhile, our thoughts are with the victims and families affected by this rapidly-spreading virus.

Stay healthy and stay well.

Hot Links

On Demand Webinars

PPP Loans vs. EIDL: Forgiveness or Forget It

Presenters:  David J. Goodman, CPA, MST, ADCPA Member
                      Sean P. Breheney, CPA, ADCPA Member

Huge attendance on this webinar! Clearly, this is a much-appreciated topic. Watch to get the most up-to-date information on the Payroll Protection Program (PPP) and the steps you must take to receive loan forgiveness. Plus, learn what to watch out for before accepting an Economic Injury Disaster Loan (EIDL) from the SBA. Plus, almost 45-minutes of questions answered by the experts in the Q&A at the end.

Topics Included:  

Preparing for Opening Day: 
Dentists Don’t Strike Out.

Wow! We packed the house with our May 8, 2020 webinar for dentists. Everyone had a lot of fun with the baseball theme and the feedback was outstanding. We covered how to successfully reopen your practice, as well as what you could be doing right now—before you reopen your practice. Get the top four HIPAA and OSHA requirements. Be sure to check out the Q&A’s at the end for attendee questions, including those specific to pediatric dentistry, those your employees won’t tell you and those regarding the nuances of PPP for dental practitioners.

The Presenters:

David J. Goodman, CPA, MST – David Goodman is a highly-skilled CPA and the managing partner of LB Goodman & Co. He is recognized thought leader in dental CPA practices.

Cliff Marsh, Dental Practice Management Consultant – Cliff Marsh is an accomplished dental practice business consultant and comes from a long line of dental industry professionals.

Danielle McKinley, Certified HIPAA Advisor Danielle McKinley is Director of Partner Relations and founding member of PCIHIPAA. Her extensive experience in risk management focuses on HIPAA, PCI, and Cyber Security.

If you are in the dental industry and were not able to attend this webinar, you can watch it with the link below. It may very well be the most valuable information you will get all year.

Attendee Resource Toolshttp://pcihipaa.com/lbg

COVID-19, PPP Loan Forgiveness & Buried Treasure

Presenters: Sean Breheney, CPA and Art Wiederman, CPA

A great session on April 23, 2020. You can watch the recording with the most up-to-date information on COVID-19 relief here. Find out how to maximize the hidden opportunities in the PPP (Payroll Protection Program). Learn how to get your PPP loan forgiven and where the buried treasure is in the CARES Act. See what questions attendees asked on how to apply this information in their business, and the answers provided from our knowledgeable professionals. Join us to get expert guidance on how the rules apply to your business.

Navigating Your Business Through the New Normal

Presenter: David J. Goodman & the LB Goodman Leadership Team

We had a packed session on April 2, 2020. For those of you who weren’t able to attend, here is a recording of this information-packed webinar. Find out first-hand about what’s available to help you weather the COVID-19 economic crisis. Get the most up-to-date information about what government funded loans are available for small businesses. Hear answers to attendee questions about SBA Loan Programs, Paid Sick Leave and Family Medical Leave, and the CARES Act. Join us to get expert guidance on how the rules apply to your business.

Tax Updates & Deadlines

All taxpayers are considered affected by the COVID-19 crisis. Treasury Secretary Steven Mnuchin stated tax returns and tax payments are postponed for 90 days.

Federal Income Tax Return Filing Date and Payments Due: July 15, 2020

  • Payments of tax on self-employment income are included in the relief
  • Taxpayers do not have to file an extension to be eligible for the relief
  • There will be no penalties, and interest will not apply to deferred payments
  • This new guidance applies to individuals, trusts, estates, partnerships, associations and corporations
  • The right to defer tax payment applies only to 2019 tax returns and 2020 estimated taxes that would be due on April 15, 2020
  • There are no restrictions on payment limits, unlike the earlier guidance stating limits of $1 million for individuals and $10 million for corporations

IRS Grants Additional Broad Tax Relief

The Internal Revenue Service has issued expanded relief on April 10, 2020. A few highlights of the additions are listed below:

  • Estimated Taxes – The IRS postpones the June 15th deadline for estimated tax payment to July 15th.
  • American Citizens Living Abroad – American who live and work abroad can now wait until July 15, 2020 to file their 2020 federal income tax return and pay any tax due.
  • Specific Forms and Schedules – are now extended to July 15, 2020

Click here to download the full Broad Tax Relief article.

NJ Tax Extension Details

On April 14, 2020, New Jersey passed Bill S-2338, which extends the time to file and pay 2019 calendar year taxes to July 15, 2020. See links below to read the details fo the bill and additional clarification of the bill.

People First Initiative (IR 2020-59)

On March 25, 2020, in response to the COVID-19 crisis, the IRS unveiled its new People First Initiative in an effort to temporarily adjust or suspend key compliance programs.

In an Information Release, the IRS has announced that beginning April 1, it will provide relief to taxpayers that ranges from easing payment guidelines for installment agreements and Offers in Compromise to postponing certain compliance actions. Click here to download important information on relief to taxpayers.

IRS Stimulus Checks for Individuals

As part of the CARES ACT which was signed into law on March 27, 2020, all individual taxpayers who qualify will receive a one-time stimulus payment — Economic Impact Payment.

The IRS has already started issuing payments to taxpayers who have direct deposit set up on their filed Federal Tax Returns for 2019 or 2018.

Click here to find out how to get a stimulus payment or how to check on your stimulus payment.

What Employers Need to Know

Payroll Relief

The CARES Act provides immediate assistance to individuals, families, and businesses affected by the COVID-19 emergency. A key provision of the CARES Act is a new program called the Paycheck Protection Program (PPP).

Paycheck Protection Program loans will be 100 percent guaranteed by SBA, and the full principal amount of the loans may qualify for loan forgiveness. 

The following documents will help you prepare and apply for the new PPP.

Payroll (PPP) Forgiveness

On June 3, 2020, the Payroll Protection Flexibility Act was passed. Below is key information you need to know.

Highlights:

  • PPP loans now have 5-year maturity instead of the original 2 years. Interest remains at 1% annually.
  • The original 8-week covered period to spend the PPP funds now has an option to choose a 24-week period or December 31, 2020, whichever is earlier. This means that the restoration of employees by June 30th has been extended to December 31, 2020.
  • As a reason for not meeting the employee restoration requirement, a new exemption allows an employer to establish the inability to rehire employees, the inability to find similar employees for unfilled positions or the inability for the business to return to the same level of activity as of February 15, 2020 due to compliance issues with government guidance like social distancing.
  • There is a new forgiveness standard regarding the percentage of PPP funds used for payroll related costs. The original threshold was 75%. This is now amended to 60%. However, if the 60% threshold is not reached there will be no PPP loan forgiveness.
  • Failure to comply with application for PPP loan forgiveness will require loan payments to begin 10 months after the last day of the covered period.
  • The receipt of the PPP funds no longer prohibits an employer from the deferral of federal employer payroll taxes under the Cares Act. Originally, payroll tax deferral was only allowed until forgiveness was granted.

SBA Provided Additional Guidance on June 22, 2020
Click here to read details.

Paid Leave

Employer obligations begin on April 2, 2020. Here’s what you need to know.

  • There are different paid leave types because of COVID-19. Payments are based on the reasons that the employees are unable to work. The mandatory paid leave amount depends on the type of paid leave taken and based on the reason the employee is unable to work.
  • Under the Families First Coronavirus Response Act, employers will be eligible for tax credits against FICA, based on the amounts of mandatory sick leave paid. Click here to download.

Health Coverage Questions

With guidelines changing almost daily, a lot of questions are arising. Horizon BCBSNJ recently provided answers to some common healthcare coverage questions. Click here to download.

New Jersey Emergency Assistance Resources

The New Jersey Economic Development Authority (NJEDA) is providing grants and loans for small- and medium-sized businesses, as well as nonprofits (SMEs). Click here to download.

$50 Million Added for New Jersey Businesses

On June 4, 2020, the New Jersey Economic Development Authority (NJEDA) added $50 million to Phase 2 of the Small Business Emergency Assistance Program funding. The application will be on the NJEDA website on June 9, 2020. Below is a breakdown of how the funds will be used.

  • $5 million is set aside for businesses that were waitlisted during Phase 1
  • $45 million will be used to provide grants up to $10,000 to eligible businesses
  • $15 million of that $45 million is earmarked for businesses in a NJ Opportunity Zone

The grants will be awarded based on $1,000 per full-time employee (as per the WR-30 payroll filing), up to the $10,000 maximum. Sole proprietorships or other companies without any full-time employees will receive the minimum grant of $1,000. Funds are meant to replace lost revenue and cannot be used for capital expenses, including construction.

Eligibility has been expanded in Phase 2 with the hope to be able to help more businesses impacted by COVID-19. Eligible businesses under Phase 2 include:

  • Those with up to 25 full-time employees, up from 10
  • Those with any NAICS code, as opposed to only specific codes of Phase 1
  • Those with a physical presence in NJ, including home-based businesses
  • Non-profit organizations organized under 501(c)3, 501(c)4, and 501(c)7

Click here to be redirected to the NJDEA site for more information.

What Employees Need to Know

Paid Leave

The United States Department of Labor, Wage and Hour Division, has released a new paid leave policy under the Coronavirus Response Act (FFCRA or Act). It specifies entitlements and criteria for paid sick leave and expanded family and medical leave for specified reasons related to COVID-19. These provisions will apply from April 1, 2020 through December 31, 2020. Click here to download the document.

IRS Allows Mid-Year Changes for Healthcare FSAs and Dependent Care Elections

On May 20, 2020, the IRS announced it is allowing employee election changes during the 2020 calendar year for employer-sponsored health coverage, healthcare Flexible Spending Accounts (FSAs), and dependent care assistance programs.

Midyear elections made during calendar year 2020 may permit employees who are eligible to make salary reduction contributions under the plan as follows:

Employer-Sponsored Health Coverage

(1) Make a new election on a prospective basis if the employee initially declined to elect employer-sponsored health coverage; (2) revoke an existing election and make a new election to enroll in different health coverage sponsored by the same employer on a prospective basis; and (3) revoke an existing election on a prospective basis, provided that the employee attests in writing that the employee is enrolled, or immediately will enroll, in other health coverage not sponsored by the employer.

Flexible Spending Accounts (FSAs)

Revoke an election, make a new election, or decrease or increase an existing election applicable to a health FSA on a prospective basis.

Dependent Care 

Revoke an election, make a new election, or decrease or increase an existing election regarding a dependent care assistance program on a prospective basis.

To read the entire article, click here.

What the Self-Employed Need to Know

Self-employed individuals, including freelancers and gig workers, who are unable to work because of the COVID-19 emergency will receive credits against Self Employment Contributions Act (SECA) contributions.

If a self-employed individual is also an employee of another employer, the individual cannot double-dip. Click to download the full article.

Straight Answers on Unemployment

Understanding Unemployment Benefits

Different states have different criteria for receiving unemployment benefits. To help eliminate the confusion, we have provided an Unemployment Quick Facts sheet for the states we serve: New York, New Jersey and Florida.

Be aware that if your employer offers re-employment and you decline, you may forfeit eligibility for continued unemployment compensation.

NJ

NY

FL

Self-Employed? How to File for Unemployment

On April 13, 2020, the New Jersey Department of Labor & Workforce Development released more information for the self-employed, independent contractor, gig worker or platform worker. Click the links below to learn how to apply and what documentation is required, as well as frequently asked questions.

What LB Goodman & Co. Is Doing

Good People. Uncertain Times.

Staying healthy is no longer an option. It is a mandate. We all must make choices to keep not only ourselves healthy, but to help keep others healthy as well.

As an employer with an award-winning culture, our top priority is the health and well-being of our clients, our employees and our community. That’s why our team is working remotely until the CDC advises it is safe to return to the workplace.

Fortunately, we are prepared for times like these. With all the technology available today, LB Goodman & Co. services can continue uninterrupted. We are available via email, telephone and video conferencing.

Below is a list of what we are doing to keep our employees, clients and community safe.

Working from Home

We are working from home and have made expanded our technical resources to accommodate this virtual workspace and to meet our client expectations and promises.

No In-Person Client Meetings

Although we have paused face-to-face meetings, we continue to meet by phone or video conference. Our focus at this time is helping clients get tax refunds, apply for loans, manage cash flow. Some clients are using this time for tax-planning sessions and financial strategy sessions, with a couple of different scenarios based on the outcome of COVID-19.

Workflow

Clients are sending their documents to us via email, fax or portal upload. Staff can safely access and process these documents through our HIPPA-compliant server. Our team regularly meets via video conferencing to review and discuss client needs for their most advantageous outcomes.

Internal Culture and Communication

We are cultivating connections and camaraderie to combat the isolation one can feel in a virtual workspace. One action is we started exchanging daily inspirational email messages. Another is having Foodie Friday, where our team exchanges simple and delicious recipes with easy to find ingredients. Still another is our weekly all-staff video calls. Each one is themed to bring a little levity into our time together. One recent theme was the Silly Hat Session, where everyone wore a silly hat during our call.

We’d love to hear how you are making your virtual workspace fun and effective. Send us an email or share with us on Facebook.