COVID 19 UPDATE CARES ACT

Dear Clients and Friends,
In keeping with our prior updates, we are providing information in a brief bullet points with embedded links to our sources.
COVID-19 SCAMS
If you receive calls, emails, or other communications claiming to be from the Treasury Department and offering COVID-19 related grants or stimulus payments in exchange for personal financial information, or an advance fee, or charge of any kind, including the purchase of gift cards, please do not respond. These are scams. Please contact the FBI at www.ic3.gov so that the scammers can be tracked and stopped.
Fraud involving payment of Federal taxes should be reported to the Treasury Inspector General for Tax Administration.
For Individuals:
1) STIMULUS PAYMENTS
·$1,200 for individuals, $2,400 for Married Couples plus an additional $500 per child.
·These amounts are phased out for individuals with over $75,000 and Couples with over $150,000 in adjusted gross income.
·AGI is found on line 8b of your form 1040.
·For the most part, no action is required to receive these funds. If your 2019 tax return has not been filed, the IRS will refer to your 2018 return.
·The funds will be direct deposit to your bank account if the IRS has that information on file. Otherwise they will mail a check.
·We expect the payments to start arriving in three weeks.
2) RETIREMENT ACCOUNTS
·Required Minimum Distributions are suspended for 2020.
·Early withdrawal penalties are being waived for up to $100,000 in Covid-19 related withdrawals.
3) UNEMPLOYMENT:
·Slated expansion to include up to $600 per week for individuals released from a job due to Covid-19 for up to four months.
·Under the bill self-employed people will be eligible for unemployment benefits.
·At this time individuals who have lost their job should visit https://connect.myflorida.com/
to apply for unemployment compensation.
Another source of relief comes from the Treasury department extending the filing and payment deadline to July 15, 2020. Individuals are being given an additional 90 days to file and pay any amount due without penalty or interest.
Employers:
·Payment of the 6.2 percent employer portion of Social Security Tax can be deferred until 2021
·Employee retention credit of up to $5,000 for paying employees while operations are suspended if gross receipts drop by 50%
·The new Paid Sick Leave requirements under the Families First Coronavirus Response Act creates new rules for employers with under 500 employees. Please review and display the attached poster. https://www.dol.gov/sites/dolgov/files/WHD/posters/FFCRA_Poster_WH1422_Non-Federal.pdf
·Small businesses with fewer than 50 employees may qualify for exemption from the requirement to provide leave due to school closings or childcare unavailability if the leave requirements would jeopardize the viability of the business as a going concern. For more details go to https://www.dol.gov/agencies/whd/pandemic/ffcra-employer-paid-leave
Local Resources and Alerts
The Florida Small Business Emergency Bridge Loan Program is currently available to small business owners located in all Florida counties statewide that experienced economic damage as a result of COVID-19. Loans will be interest-free for the loan term (1 year). The Interest rate will be 12% per annum on the unpaid balance thereafter, until the loan balance is repaid in full. Go to floridadisasterloan.org for details.
The SBA is also offering express loans to those who qualify. https://www.sba.gov/coronavirus
The best source of information for closures and alerts please visit www.co.st-johns.fl.us
We will send out more information as we learn more to help Small business or Individuals as it becomes available.
My Sources for this update include:
Stay Safe and Healthy.
God Bless You All.
Lisa Whitley, E.A.
First Coast Accounting, LLC
(904) 217-4462