As the second round of Paycheck Protection Program (“PPP2”) loans became available January 19th, the U.S. Small Business Administration (SBA) and the Treasury have issued clarification regarding several topics, including:
• How PPP borrowers should calculate revenue reduction;
• Maximum loan amounts for Second-Draw PPP loans;
• Documents borrowers must provide to support each set of calculations.
To view the SBA’s full Q&A document, click here.
We will be glad to assist you with any questions you may have regarding the SBA PPP2 loans.
Other First Quarter Key Dates
The 2020 tax reporting deadline for forms W2, 1099 and 940/941 is February 1st, 2021. This includes:
• Form W-2 to employees
• Forms W-2/W-3 with the Social Security Administration
• Form 1099-NEC (Nonemployee Compensation) to recipients and IRS
• Form 940 – Annual Unemployment Tax Return
• Form 941 – Quarterly Federal Tax Return
Please keep in mind that for Form 940, the deadline has been extended to February 10th if all FUTA tax payments have been made on time.
Businesses that file 250 or more of each type of Form 1099 are required to file those forms electronically.
Businesses must file Form 1099-MISC with the IRS by March 1st or March 31st if filing electronically.
A calendar year-based partnership or S-Corporation needs to file or extend its 2020 federal return by March 15th. Please be aware that this is also the last day to make contributions to pension and profit-sharing plans for tax year 2020 if the return is not extended.
Please contact a tax professional if you have any questions or need assistance with meeting the deadlines.