Padgett Business Services

2020 Tax Filing Season to Begin on February 12, 2021

Tax filing season opens on February 12th this year. As January continues, be sure to watch for important tax documents arriving in your mailbox!

Important news for business owners -- applications for the newest round of the Paycheck Protection Program are now being accepted! Last week, the U.S. Treasury and the Small Business Administration also released new PPP guidance and applications, including overviews of the first and second PPP draws, as well as a revised Lender Application Form and the Second Draw Lender Application Form.

January News! from PADGETT BUSINESS SERVICES

7 things to consider on timing your PPP loan forgiveness application.

Is it time for PPP Loan Forgiveness?

Negotiations are ongoing in Washington, D.C. around a possible second batch of stimulus funding to support small businesses, including a fresh round of the Paycheck Protection Program. Though no deal has been reached yet, follow what's in these various proposals and what they mean for small businesses here...

The political environment in Washington has left us in a waiting period. While there are various pieces of legislation being proposed, the House and the Senat...e haven't been able to agree on much. Rest assured that Padgett is closely monitoring the situation, and while something could surface given the November elections, we may just be left waiting. So what does that mean for you? For starters, we have no new guidance on whether PPP loans under $150K will automatically be forgiven, nor any updates on the argument that PPP funds used for qualifying expenses will be deductible. Could there be another stimulus package? Maybe, maybe not. Tax reformwho knows! When additional information becomes available, we'll communicate it to you. Want to chat about it? Contact a local Padgett office today at https://www.padgettbusinessservices.com/locations ! See more

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PPP Loan Forgiveness Expanded

SENATE PASSES BILL! Under the March $2.2 trillion coronavirus package, businesses were given eight weeks to spend PPP funds. The bill passed by the Senate today would, upon President Trump's signature, extend the period in which to spend Payroll Protection Program loan funds to 24 weeks (from 8 weeks). It would also change the 75-25 divide included in the earlier bill (which required businesses to spend 75 percent of the loan on payroll and 25 percent on other fixed costs such as rent and utilities) to a 60-40 ratio.

NEWS: On Friday, the PPP Forgiveness Application was released. The current application (which is subject to change) limits compensation paid to owner-employees to eight weeks’ worth of their 2019 compensation. We are awaiting further guidance but wanted to get this out as soon as possible. https://www.sba.gov//sba-form--paycheck-protection-program

The business decisions you make now can position your company for a comeback and help you succeed in the new normal.

THE SMALLEST BUSINESSES NEED CHANGES TO THE PPP. Read about the recommendations Padgett Business Services recently made in a letter to SBA Administrator Jovita Carranza and Treasury Secretary Steven Mnuchin for businesses with fewer than 50 employees.