What Small Business Owners Need to Know During the COVID-19 Pandemic

 

The rapid spread of COVID-19 throughout the world has changed everything we know about operating businesses, large corporations and small startups alike. As the economies of several countries have essentially shut down, you as a business owner must prepare for a tumultuous period ahead. Ensure that you and your business will emerge on the other side of this pandemic by gaining a thorough understanding of the CARES Act and securing your 401(k).

What to Know About the CARES Act

Weeks ago, on March 27th, the U.S. federal government passed the CARES Act, or the Coronavirus Aid, Relief, and Economic Security Act. This bill is intended to help businesses and individuals endure the economic insecurity caused by the coronavirus pandemic. This package amounts to $2 trillion and is the largest bill to have ever been passed in the country. Within the relief package is $350 billion specifically meant for assisting small businesses negatively impacted by the crisis. Below are some basic elements of the bill:

  • Paycheck Protection Program (PPP): Perhaps one of the most pressing issues you’re facing at the moment is retaining your employees. To help you to avoid having to lay off your workers, the PPP offers a special emergency loan (sourced now by an expanded network of lenders) that will be forgiven under the condition that it is used to maintain payroll, mortgage, rent, and utilities through the month of June. Eligible businesses include:
    • Small businesses with fewer than 500 employees
    • 501(c)(3) non-profits with fewer than 500 employees
    • Veteran organizations
    • Small businesses impacted by COVID-19 between February 15-June 30, 2020.
  • Small Business Association’s Economic Injury Disaster Loan (EIDL): Low-interest loans are available up to $2 million to help businesses re-stabilize during the sudden, massive loss of revenue. This existing assistance program has been expanded to accommodate more small businesses, including those that are smaller than $200,000. Eligible businesses include:
    • Small businesses with fewer than 500 employees
    • Non-profits
    • Employee Stock Ownership Plans (ESOPs), tribal businesses, and cooperatives with less than 500 employees

The federal government is also relaxing standards on taxation of small businesses in the following ways:

  • Taxpayers are now being allowed three additional months to file and pay taxes. Instead of the annual April 15thdeadline, businesses (and individuals) can now file taxes as late as July 15, 2020.
  • Businesses are eligible to receive a refundable 50% tax credit wages paid between March 13-December 31, 2020. Wages can be up to $10,000 per employee.

Businesses that are eligible for this aid include those whose operations were either partially or totally suspended due to COVID-19 and/or whose gross receipts were reduced by more than 50% compared to the same quarter of the previous year.

How You Can Protect Yourself and Your Business

Your 401(k) is essential to the assurance of stability in your future. Many business owners, especially those who have not yet had the opportunity to establish a solid 401(k) plan, have been hesitant to continue investing in such a plan due to the economic insecurity caused by the coronavirus. Although it may seem like the safer option, avoiding the development of a reliable 401(k) plan can put you and your employees at even greater risk.

There are numerous options available at affordable prices for the security of small businesses. Get in touch with an administrator today to get your plan started and protect your business’ future.

2 thoughts on “What Small Business Owners Need to Know During the COVID-19 Pandemic

  • September 8, 2020 at 9:37 am
    Permalink

    Paystub Generator is probably the best tool at any point generated by technology innovation. It addresses the issues of employees’ paycheck makers with precision which is one of the significant attractions to utilize this legit facility.

    Reply
  • October 13, 2020 at 8:05 am
    Permalink

    When you make an online paystub, be ensured that you can use it as your salary proclamation any place crucial. Whether or not you have to rent a house, apply for a development or benefit some other credit office, online paystub service is used by many individuals and contractors. It contains all the important factors used in the paycheck calculations, and consequently you don’t need to worry about it being unverified by the broker.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *