COVID-19

Mar 31, 2020 | By: Michael Blanchard

Coronavirus-Related Resources

In these uncertain times, we want to offer a few links to information we’ve come across. This is by no means an exhaustive list as things change day to day, but we will attempt to keep updated resources in front of you.

In our office, much has changed. We’ve closed our front door, and many of our employees are working from home. We’re monitoring the voicemail, but someone will not always be available to answer your call. Rest assured we’ll return your call as soon as we’re able.

You can also email [email protected] or [email protected] and we’ll get back to you shortly.

Even though tax filing and payment deadlines have been extended to July 15^th, we would like to help you file your taxes as soon as possible. If you can send your documents via our secure portal, that is ideal. If you like, you can also drop them through our mail slot.

If we have any questions for you, and/or if you’d like to speak with an accountant about your tax return, we will reach out after we’ve had a chance to look over your papers.

The best way to file your tax return is through the digital e-sign process.  To do that we will need a valid email address (separate emails for a joint return). 

We have “flattened the curve” of work during tax season. In a typical year, we would be working long hours to prepare returns by the due date.  For the last few weeks, we have reduced our hours considerably and are also spending time assisting businesses with the many changes coming our way. This means we will be slower in delivery of tax returns, but will continue working steadily through April into May to finish things up.

There are many questions, and as you can see from even the official sites, we're still waiting for official guidance on the implementation and implications of new rules and laws. Our job will be to help you understand the tax impact and navigate the payroll process, if you're a payroll client of ours, but we are not going to be able to help you make furlough, layoff, PTO, or FMLA and OFLA decisions about your employees. Our payroll softwares do have new codes for processing leave pay without paying federal tax. 

 

JGC Wealth Management: 

JGCWM provides fee only financial planning and wealth management services.

Here is a link to the latest quarterly letter sent to JGCWM clients.

Human Resources Information:

Cascade Employers

Society for Human Resource Management

Retirement Plan Management:

Retirement Plan Consultants

Local Opportunities

Oregon Community Foundation is working with local not-for-profits and lending agencies to provide relief in the form of grants, loans and loan relief during these uncertain times. You can give, apply or see updates on their site. 

The U.S. Chamber of Commerce has also created a grant for small businesses. Their site is currently closed due to an abundance of applications they are processing, but it is worth keeping an eye on.

United Way of the Mid-Willamette Valley is participating with local food banks, grocery stores and the Salem-Keizer school district to provide food boxes for needy families and seniors. If someone you know has a need, this is a great resource, and if you’d like to help, this is a great place to give.

Marion County is offering to fund vendors who have a plan to reach out with their new COVID-19 Prevention Program Vulnerable Populations Project, aimed at reaching especially Russian and Spanish-speaking groups in migrant/seasonal and community settings. If this sounds like something you could help with, the application information is in the link above. Applications are due May 31^st.

Marion Polk Food Share provides food to local families in need and supplies the Meals on Wheels program. Demand has been up as people have been less willing or able to leave their homes due to threat of exposure to COVID-19. There may be opportunities to deliver or donate. 

 

Government Links:

 CDC 

World Health Organization  

US Dept of Labor 

OSHA 

Equal Employment Opportunities Commission/Americans with Disabilities Act

National Law Review 

Small Business Administration and SBA Loan Forgiveness Application

Economic Impact Payments

Tax:

IRS

Oregon Department of Revenue

Oregon Corporate Activity Tax

Relief available:

There are several recently enacted tax changes and new or expanded benefits that might be helpful to you.

Income tax provisions

• The IRS extended the April 15, 2020 federal income tax filing and payment deadline to July 15, 2020. However, we continue to work on filing returns as soon as possible.
• First quarter federal estimated tax payments usually due April 15, 2020 are now extended to July 15, 2020, and the IRS has now extended second quarter estimated tax payments to July 15th as well.
• First quarter Oregon estimated tax payments usually due April 15, 2020 have not been extended, and are still due April 15, 2020.  If cash flow is a concern, we recommend paying the first quarter Oregon estimated tax payment with the federal payment on July 15, 2020, as any underpayment penalty will likely be minimal.  
• Oregon estimated tax payments usually due on June 15, 2020 have not been extended, and are still due June 15, 2020.

Recovery rebates

• Payments to individuals of $1,200 ($2,400 for joint filers) plus $500 for each qualifying child are expected to be delivered around mid-April.
• The recovery rebate begins to phase out for taxpayers with adjusted gross income (AGI) above $150,000 for joint filers, $112,500 for heads of households and $75,000 for other individuals.
• The payment is not taxable.
• The federal government is updating this site with information.

Retirement accounts

• Through the end of the year, individuals who are under 59 ½ years old can take up to $100,000 in coronavirus-related distributions from retirement plans without the usual 10% penalty for early distributions. The distributions may be repaid within three years and any resulting income inclusion can be taken over three years.
• If you were over 70 ½  at December 31, 2019 you won’t have to take required minimum distributions (RMD) in 2020. If your retirement assets have taken a hit, not having to take an RMD may allow those assets to recover some value before you liquidate them. You are also able to contribute funds you’ve taken out in the last 60 days back to your account.

Health Savings Accounts

• Retroactive to January 1, 2020, over-the-counter (OTC) drugs and medicines, as well as feminine hygiene products, are now eligible for reimbursement from Health Savings Accounts (HSA). This is a permanent change.
• HSA-qualified high-deductible plans are permitted to pay for COVID-19 testing and treatment before the deductible is reached.
• 2019 HSA contributions may be made through the 2019 tax filing deadline – July 15, 2020.

Student loans:

• If you have a federally-held student loan, your payments will be suspended through Sept. 30, 2020 and interest won’t accrue during this period. Note that this relief does not apply to private student loans.

Employee retention and payroll tax credits

• A refundable tax credit has been created to assist employers in retaining employees. The credit is computed at 50% of qualified wages paid by eligible employers for up to $10,000 paid to each employee between March 13, 2020 and December 31, 2020.
• Subject to limitations and exceptions, employers of less than 500 employees are required to provide mandatory sick time and paid family leave but are eligible for payroll tax credits to offset the costs. Eligible self-employed individuals also qualify for the credits. Healthcare providers and emergency responders are excluded; employers with fewer than 50 employees can be exempted.
• Employers (including self-employed individuals) will be able to postpone the employer’s share of Social Security taxes through the end of this year. The delayed payments are due in two equal payments, one due December 31, 2021 and the second due December 31, 2022. 

Small Business Administration (SBA) loans

• Small businesses are eligible to apply for an Economic Injury Disaster Loan grant of up to $10,000. Funds should be made available within three days of a successful application, and this grant will not have to be repaid.
• Small businesses may also apply for a loan through the Payroll Protection Program. This program is designed to help provide capital to cover the cost of retaining employees. If certain criteria are met, the loan can be forgiven. 
• Other SBA programs are also available. For more guidance, see SBA’s Coronavirus Small Business Guidance and Loan Resources 

Other business provisions

• Unfortunately, many businesses are facing losses due to the economic impacts from the pandemic. For losses arising in tax years 2018, 2019 and 2020, a five-year carryback is now allowed to help businesses recoup some of their prior taxes.

• Interest expense deduction limitations are more taxpayer favorable. Under prior legislation, net interest expense was limited to 30% of adjusted taxable income. This limitation has been increased to 50% for tax years 2019 and 2020.
• Depreciation modifications were made in connection with qualified improvement property to allow for a faster write-off of these assets. Under prior legislation, this type of property was required to be depreciated over 39 years. Under the recent legislation, this depreciation period has been reduced to 15 years, and these assets will now be eligible for bonus depreciation which will allow for an immediate deduction of the entire cost of the property.