The U.S. Small Business Administration (SBA) released guidance last week confirming that Paycheck Protection Program (PPP) loan forgiveness applications are not due on October 31, 2020. In the SBA’s latest loan forgiveness FAQ document, the SBA explains that borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from the loan’s origination, depending on the borrower’s agreement.

Fears of an October 31, 2020 PPP deadline came to the SBA’s attention because the program’s loan forgiveness application forms (3508, 3508EZ, and 3508S) show an expiration date of “10/31/2020” in the upper-right corner. This prompted the SBA to calm PPP borrowers’ fears of a surprise deadline by issuing a new entry in its loan forgiveness frequently asked questions document answering “Is October 31, 2020, the deadline for borrowers to apply for forgiveness?”

What is the Paycheck Protection Program (PPP)? The PPP is a part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This act authorizes the Treasury to use the SBA’s 7(a) small business lending program to fund loans of up to $10 million per borrower that qualifying businesses can spend to cover payroll, mortgage eligible costs.

Talley’s professionals have spent literally hundreds of hours reviewing the law, regulations and FAQs issued on an almost daily basis and we are happy to assist you in the process. We are available to simply answer a quick question or assist in the application and/or forgiveness process.

As 2020 is coming to a close, employees of both large companies and small businesses are finding themselves in a rut as they continue to work from home. A survey conducted by FlexJobs and Mental Health America found that 75% of people have experienced work burnout and 40% said they felt it during the pandemic. Between job-less worries, work-from-home challenges and feeling overwhelmed, it’s easy to understand why both businesses and employees are experiencing work burnout as well as other mental health issues.

  • Acknowledge the problem. The first step in managing burnout is to acknowledge that you’re dealing with it. The symptoms of work burnout, as defined by the World Health Organization (WHO), include feeling: emotionally and/or physically drained; mentally checked out at work; excessive pressure to succeed and the need to hide personal concerns while at work. If you’re concerned about your mental health, you can take a free confidential and anonymous online screening at the Mental Health America website here.
  • Look into employer-provided mental heath benefits. These include telemedicine screenings, employee assistance programs and stress reduction programs. If your employer doesn’t provide assistance, look into services offered through local nonprofit agencies, veterans organizations or your state office of mental health.

  • Establish firm work/life boundaries. When you work from home, it’s critical to set healthy boundaries to keep the stress and demands of work from interfering with home life and vice versa. While not everyone has the option to dedicate a room in their home as their personal office, try to create a dedicated workspace that limits as many distractions as possible. Focus on work tasks before personal tasks, especially in the morning; later in the day, when you need a break, you can squeeze in personal tasks, exercise, or a fun activity to unwind.

Talley shares the same entrepreneurial spirit that has helped propel our clients to their current levels of success. With over 25 years of experience assisting high net worth individuals and business owners, Talley has the expertise necessary to help entrepreneurs throughout their entire journey, from formation to succession.

The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, earlier this week released a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less. This action streamlines the PPP forgiveness process to provide financial and administrative relief to America’s smallest businesses while also offering additional guidance on lender responsibilities.

Simplifying Forgiveness for Many. Under the new Interim Final Rules (IFR), Businesses that borrowed $50,000 or less won’t have the amount of their PPP loan forgiveness reduced based on reductions in full-time-equivalent employees or reductions in employee salary or wages. The newly simplified forgiveness application, Form 3508S, can be used by borrowers with a total loan amount of $50,000 or less, unless they and their affiliates received loans totaling $2 million or more.

For PPP loans of all sizes, the IFR also contains guidance on lender responsibilities with respect to the review of borrower documentation of eligible costs for forgiveness in excess of a borrower’s PPP loan amount.

Congress created the PPP as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was signed into law on March 27. The legislation authorized Treasury to use the SBA’s 7(a) small business lending program to fund loans of up to $10 million per borrower that qualifying businesses could spend to cover payroll, mortgage interest, rent, and utilities.

PPP borrowers can qualify to have the loans forgiven if the proceeds are used to pay certain eligible costs. The program stopped accepting applications on Aug. 8 with almost $134 billion of congressionally approved funds remaining unspent.

Talley’s professionals have spent literally hundreds of hours reviewing the law, regulations and FAQs issued on an almost daily basis and we are happy to assist you in the process. We are available to simply answer a quick question or assist in the application and/or forgiveness process.

Have any questions about the PPP? Contact Us.

There is little disagreement that effective decision-making is one of the most important skills we must hone to achieve success in almost every aspect of our lives. People tend to believe that their feelings don’t bias their “logical” decisions but studies have shown that emotions are critical to decision making. Estate planning is no different. No matter how you look at it, when people are involved, emotions are always going to be part of the equation. Let’s take a look at how emotions can affect your goals in estate planning.

Estate planning can be a morbid topic for many.  One of the most common emotions in estate planning is fear. Speaking about death or incapacitation and what’s going to happen once you’re gone is an unpleasant topic that people tend to avoid. Most would agree that estate planning is important, yet all too often many fail to act. Case in point, 55% of Americans don’t have a last will. Being uncomfortable or afraid of the subject can lead to two of the biggest mistakes one can make when it comes to estate planning: avoiding it all together, or not reviewing your plan often enough to account for life events that can have an effect on your estate.

While estate planning can be a stressful and emotionally-charged topic, it can also be a lengthy and overwhelming process for many. Establishing a detailed plan can take anywhere from six months to two years. The lesson being that it’s never too soon to get started. Not all estate plans for business owners or high net worth individuals are the same, and each should be customized to fit your ever-evolving individual circumstances and needs. The key is to not become overwhelmed by the process and focus on your family’s goals and desires. Some even get creative with their estate planning!

It’s not just about transferring the largest amount of money possible to heirs free of estate tax and shielding money from creditors, it is about defining and executing your legacy as well as clearly communicating it to all those involved. The most well-intentioned, technically sound plans can reap negative unintended consequences if they are not communicated clearly to the beneficiaries, and disputes can and will arise.  See our article on Robin William’s estate troubles as an example of this.

Though your options are virtually limitless, proper estate planning -deciding on the “who, what, when, and how” and executing this with the least amount paid in taxes, legal fees and court costs possible can be a challenging and emotional affair to wrestle with alone. For more information, contact Talley LLP today.

From Olympic medals to national championships, the world of elite sports is full of inspiring stories of hard work and determination. Similar to the career of an entrepreneur, success in this profession doesn’t come easy. Being a star player often requires long hours, creative thinking, and commitment to the team. Although physical talent is key to an athlete’s success, their mindset is even more critical and can teach entrepreneurs a few lessons on how to be equally victorious in the board room.

Continue to set goals and improve. Plateauing is both an athlete’s and an entrepreneur’s worst enemy. An athlete must set performance goals and create a plan to achieve new career milestones. Consistent practice and self-evaluation allow them to perform their best as a competitor. Likewise, entrepreneurs should set overall goals to keep their businesses moving in the right direction. They should focus on making a game plan that will help them improve as they continue to grow. Breaking their overall goals down into micro-goals is one way they can make tracking their progress more manageable.

Don’t be afraid to take risks. Most successful athletes did not get where they are by playing it safe. Risk and reward often go hand in hand, so pushing that extra mile or taking that final shot are what differentiate elite athletes from the average player. Finding a balance between risk and recklessness is also critical for entrepreneurs. Being too scared of change will inhibit growth, and changing too much at once will cause failure. Calculated risks are the solution to keeping a business ahead of competitors while taking potential concerns into account.

Keep your head in the game. The greatest athletes in the world are also recognized as leaders. Their hard work, ambition, and drive are qualities any director, CEO, or business influencer can aspire to possess. If an athlete makes a mistake, being able to separate their failures from their present performance allows them to continue reaching for success. Entrepreneurship may be one of the most challenging business environments, but business owners must maintain a level head throughout the ups and downs. Entrepreneurs need to stay confident in themselves even when the odds are stacked against them.

Talley shares the same entrepreneurial spirit that has helped propel our clients to their current levels of success. With over 25 years of experience assisting high net worth individuals and business owners, Talley has the expertise necessary to help entrepreneurs throughout their entire journey, from formation to succession.

Bipartisan Problem Solvers Caucus Unveils COVID-19 Stimulus Framework

Earlier this week, the bipartisan Problem Solvers Caucus (PSC), comprised of 25 Democrats and 25 Republicans from the House, unveiled its “March To Common Ground” framework to help break the gridlock on the latest COVID-19 relief package and encourage negotiators to get back to the table.

The package addresses key areas of need, including COVID-19 testing, unemployment insurance, direct stimulus, worker and liability protection, small business and non-profit support, food security, schools and child care, housing, election support, and state and local aid.

In light of the urgent needs facing millions of Americans, families, and small businesses, the framework is designed for a six month horizon and through the next inauguration, except for state and local funding which extends for a full year.

Depending on the severity of the pandemic and if a successful vaccination program is adopted by March, 2021, a system of automatic “boosters” are designed to incrementally increase the amount of relief to individuals and families. Conversely, a system of “reducers” will decrease the total cost of the package.

A Summary of the Proposed Framework

  • $280 billion in funding for $1,200 stimulus checks plus $500 per child plus dependent adults.
  • The PSC’s framework includes $100 billion of additional health care spending – testing and contact tracing, healthcare provider support, and forgiveness of Medicare loans to providers.
  • $11 billion would go to enhance WIC and SNAP through March and July 2o21 respectively. (WIC is a nutrition program for Women, Infants and Children. SNAP is commonly called “food stamps”).
  • There is $25 billion for rental assistance, rent stabilization and an eviction moratorium through January 2021 and student loan forbearance through December 31, 2020.
  • The unemployment provision is $450 per week for an eight-week transition period. That is followed up by up to $600 per week but not to exceed 100% of previous wage for thirteen weeks through January 2021.
  • Reappropriating $145 billion of PPP money and adding $95 billion in new money with simplified forgiveness and $50 billion for the Employee Retention Credit.
  • $145 billion for schools and child care.
  • Half a trillion in aid to state, local, territorial and tribal governments and
  • $400 million for election security.

The proposed framework would include automatic reducers and boosters depending on how things go based on Covid-19 hospitalization metrics and vaccine progress. If things get better more quickly PPP, state and local aid and renters assistance could be carved back by as much as $200 billion.
Alternatively, if things get worse, the framework’s “boosters” include a 3-month extension on the unemployment benefits starting in February 2021 and another $280 billion for automatic stimulus checks in March 2021.

Meanwhile, Congress is expected to focus in the coming weeks on passing legislation funding the government beyond Sept. 30, the end of the current fiscal year.

Talley LLP shares the same entrepreneurial spirit that has helped propel our clients to their current levels of success. With over 30 years of experience assisting high net worth individuals and business owners, Talley has the expertise necessary to help entrepreneurs throughout their entire journey, from formation to succession.

Nearly two weeks after President Trump’s payroll tax deferral program came into effect, no major private employers have stepped forward with plans to forgo withholding the levy from workers’ paychecks. Costco Wholesale Corp., United Parcel Service Inc. and FedEx Corp are among those not participating.

Part of the challenge for the White House is it can’t unilaterally cut taxes and can only defer the due date. Internal Revenue Service guidelines left employers on the hook to pay back the payroll levy early next year, effectively doubling withholding from employees’ paychecks.

Among the challenges, is how companies can get the money owed from people who opt into the payroll tax deferral but leave prior to repaying their portion of the payroll tax being deferred. Other challenges include calculating the precise amount of payroll tax to pay back by the time taxes are due next year in April. If there are under-payments, discrepancies or reconciliation problems, the IRS can assess interest, penalties and additions to tax beginning May 2021, for which employers would be liable.

Trump’s August directive delayed the payroll tax due date for the 6.2 percent Social Security taxes for those making less than $4,000 bi-weekly, which amounts to about $104,000 a year. It was his latest attempt to achieve a second tax reduction after criticism that the 2017 Republican tax overhaul didn’t do enough to help middle-class workers.

Lawmakers did endorse a deferral of the portion of payroll taxes that is paid by companies and it was part of the last stimulus package, approved in March. That measure was easier for employers to administer and acted as a temporary liquidity aid.

Talley’s experienced team of tax professionals provides comprehensive tax compliance and consulting services so you can preserve, enhance and pass on to the next generation the assets and wealth that you’ve worked hard to build. We welcome the opportunity to discuss with you the current opportunities available to you. For more information, contact us today.

At the beginning of the pandemic, many workers were sent home armed with a laptop and other remote equipment so they could work remotely until it was safe to reopen public spaces again. But if you’re doing your job in a state different from your usual one, beware: You may need to file returns and perhaps pay taxes there.

Each state tax system is a unique combination of rules that consider how long a worker is there, what income is earned, and where the worker’s true home, known as domicile, is. But nearly all states that have income taxes impose them on workers who are passing through. In two dozen states, that can be for just one day.

So far, 13 states and the District of Columbia have agreed not to enforce their tax rules for remote workers who are present due to the coronavirus, according to American Institute of CPAs spokeswoman Eileen Sherr. Some states don’t have an income tax, but more than two dozen others, including New York and California, which are famously aggressive, are still set to levy taxes on these remote workers for 2020.

Most states offer tax credits to offset income earned in other states avoid double taxation. But these credits might not make the worker whole if the remote work is in a state with higher taxes than the home state. For example, a Seattle employee who works remotely from Oregon during the pandemic and owes Oregon income tax won’t get a credit from Washington, because it doesn’t have an income tax.

Businesses with employees or owners working remotely face further tax headaches. Simply having a worker present in a state can trigger so-called nexus rules that raise state taxes on business as well as personal income.

Out of state or telecommuting employees should talk to their employers about where state taxes are being withheld while they’re working remotely. As arrangements that at first seemed provisional take root, taxpayers should also track days spent working in different states, because auditors often use cell-phone or credit-card records to track movement.

Congress has come up with several possible solutions to this issue, however they seem to have limited traction at the moment. The proposed Multi-State Worker Tax Fairness Act, which has been introduced repeatedly since 2016, limits the ability of states to tax nonresident telecommuters. Alternatively, Senate Republicans’ HEALS Act includes a temporary provision which partially restricts such double taxation through 2024.

With these complex issues in play, we urge you to act soon to see how you may be affected when filing your taxes for 2020.

Talley’s experienced team of tax professionals provides comprehensive tax compliance and consulting services so you can preserve, enhance and pass on to the next generation the assets and wealth that you’ve worked hard to build. We welcome the opportunity to discuss with you the current opportunities available to you. For more information, contact us today.

The Treasury Department released guidance related to President Trump’s payroll tax deferral, which is scheduled to begin next week on September 1 through December 30. The guidance allows employers to defer payroll tax withholdings for employees with incomes below $4,000 during a bi-weekly pay period, calculated on a pre-tax basis, or the equivalent.

Employers can opt to not withhold Social Security payroll taxes from their employees’ paychecks from September through December. To pay the amounts that were deferred, the amount of Social Security payroll taxes withheld from employees’ paychecks would increase from Jan. 1 through April 30.

Trump, however, has said he will forgive those deferrals, rendering the measure a true payroll tax holiday. If he does not, employees could be on the hook for a sizable tax bill next year. In the event that deferrals are not forgiven, interest and penalties would begin accruing on May 1.

Trump’s top economic adviser, Larry Kudlow, said last week that the administration is “exploring ways” to forgive the tax payment completely. The taxes “essentially can be forgiven if you stretch it out five years, eight years,” he said.

A number of business groups have raised concerns about the order, arguing that there are some uncertainties about how it would apply and that a deferral could be challenging for employees who could face more taxes next year. Many businesses are not expected to implement a deferral, and are expected to continue to withhold payroll taxes from their employees’ paychecks.

Talley’s experienced team of tax professionals provides comprehensive tax compliance and consulting services so you can preserve, enhance and pass on to the next generation the assets and wealth that you’ve worked hard to build. We welcome the opportunity to discuss with you the current opportunities available to you. For more information, contact us today.

On August 8, 2020, President Trump signed an executive order that defers an employee’s portion of Social Security and Medicare taxes from September 1 through December 31, 2020. While the taxes still have to be paid at a later date, the action directs U.S. Treasury Secretary Steven Mnuchin to “explore avenues, including legislation, to eliminate the obligation to pay the taxes.”

While the CARES Act included payroll tax deferrals for employers, Trump’s executive order is instead intended to defer collection of employee tax from people making up to $104,000 from September until the end of the year, meaning employees would need to repay the government in 2021.

The deferral will be calculated on a pretax basis or the equivalent amount with respect to other pay periods. The amounts will also be deferred without any penalties, interest, or addition to the tax.

While the exact impact on employers and employees isn’t yet known, there are many open questions, including President Trump’s legal ability to implement the deferral. Some experts believe there may be legal challenges to this executive action.

Talley’s experienced team of tax professionals provides comprehensive tax compliance and consulting services so you can preserve, enhance and pass on to the next generation the assets and wealth that you’ve worked hard to build. We welcome the opportunity to discuss with you the current opportunities available to you. For more information, contact us today.


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