262-375-1900 info@donahuecpa.biz

COVID19 Information

This page has valuable information for you and your company. Please check back frequently as this situation is fluid and things change rapidly.

WE ARE OPEN!
As accountants, Donahue & Associates LLC is essential business and therefore will remain open and ready to help you, our valued clients, during normal business hours. Our front door is locked to help us maintain strict social distancing recommendations for your safety and for ours, but you can ring the doorbell and we will come out to help you.
However, we do strongly recommend correspondence over the phone or via mail or email. If you are picking up your tax return we can email the forms that need signatures and you can send us the signature pages. Then you can pick up your booklet when the mandate has been lifted.  When you do try to contact us please know that we may not be able to respond as quickly as we would like to. We care deeply about our clients and their businesses and are trying to stay on top of this situation as well as address all your needs as quickly as we possibly can.

Resources regarding COVID-19

Through this difficult time we are here for you. We know that you have a lot of questions during this unprecedented time. We are trying to assist as many of you as possible but are unable to get back to everyone as quickly as we would like. Below is a list of resources which may help address some of your questions.

AICPA Coronavirus (COVID-19) Resource Center 
Grafton Area Chamber of Commerce Covid-19 Business Guide
IRS grants broad coronavirus-related tax relief
Economic impact payments: What you need to know
Non-Filers Payment Info Tool
PAID LEAVE PROGRAMS – Employer Guide
Payroll Protection Program Summary
Coronavirus Emergency Loans Small Business Guide and Checklist
Form 7200, Advance Payment of Employer Credits Due to COVID-19
Paycheck Protection Program
Economic Impact Payments: What you need to know (1)
US Chamber Guide to Families First Coronavirus Response Act(FFCRA) (2)
Small Business Owner’s Guide to the CARES Act (3)
Paycheck Protection Program FAQs for Small Business (4)
Retirement Plan Relief for Employees and Employers Under the CARES Act (5)
Governor Evers COVID19 #12 mandate (6)

If you can’t find answers to your questions here, please reach out to your accountant here at Donahue & Associates and we will help point you in the right direction.

IRS comes out with new payment plan: The IRS has extended the filing of federal and Wisconsin returns to July 15th. In addition to this the IRS has just extended a new payment plan for your 2019 balances due and 1st quarter estimates to July 15th 2020  to make those payments interest and penalty free. We have yet to hear if all the states will comply. If you have any questions, please contact your accountant.

Below is a recent Newsletter from the IRS that will provide some additional information for you.

IRS Newswire

March 31, 2020

 

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Issue Number:    IR-2020-62

Inside This Issue

IRS: Employee Retention Credit available for many businesses financially impacted by COVID-19

WASHINGTON — The Treasury Department and the Internal Revenue Service today launched the Employee Retention Credit, designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19.

Does my business qualify to receive the Employee Retention Credit?

The credit is available to all employers regardless of size, including tax-exempt organizations. There are only two exceptions: State and local governments and their instrumentalities and small businesses who take small business loans.

Qualifying employers must fall into one of two categories:

  1. The employer’s business is fully or partially suspended by government order due to COVID-19 during the calendar quarter.
  2. The employer’s gross receipts are below 50% of the comparable quarter in 2019. Once the employer’s gross receipts go above 80% of a comparable quarter in 2019, they no longer qualify after the end of that quarter.

These measures are calculated each calendar quarter.

How is the credit calculated?

The amount of the credit is 50% of qualifying wages paid up to $10,000 in total. Wages paid after March 12, 2020, and before Jan. 1, 2021, are eligible for the credit. Wages taken into account are not limited to cash payments, but also include a portion of the cost of employer provided health care.

How do I know which wages qualify?

Qualifying wages are based on the average number of a business’s employees in 2019.

Employers with less than 100 employees: If the employer had 100 or fewer employees on average in 2019, the credit is based on wages paid to all employees, regardless if they worked or not. If the employees worked full time and were paid for full time work, the employer still receives the credit.

Employers with more than 100 employees:  If the employer had more than 100 employees on average in 2019, then the credit is allowed only for wages paid to employees who did not work during the calendar quarter.

I am an eligible employer. How do I receive my credit?

Employers can be immediately reimbursed for the credit by reducing their required deposits of payroll taxes that have been withheld from employees’ wages by the amount of the credit.

Eligible employers will report their total qualified wages and the related health insurance costs for each quarter on their quarterly employment tax returns or Form 941 beginning with the second quarter. If the employer’s employment tax deposits are not sufficient to cover the credit, the employer may receive an advance payment from the IRS by submitting Form 7200, Advance Payment of Employer Credits Due to COVID-19.

Eligible employers can also request an advance of the Employee Retention Credit by submitting Form 7200.

Where can I find more information on the Employer Retention Credit and other COVID-19 economic relief efforts?

Updates on the implementation of this credit,  Frequently Asked Questions on Tax Credits for Required Paid Leave and other information can be found on the Coronavirus page of IRS.gov.

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COVID-19 Statement

In light of the recent events surrounding the spread of COVID-19, we wanted to provide a brief synopsis of Donahue & Associates LLC operational plan that will enable us to continue to meet the needs of our clients while also placing a high priority on the safety of our employees and the community we service.

Based on current guidance, Donahue & Associates LLC will continue to remain open for business with normal hours. We ask that you use email or the mail service as much as possible. If you know the email address of your accountant, you may use that to correspond. If you do not, feel free to use the email address info@donahuecpa.biz. Mail may be directed to Donahue & Associates LLC, PO Box 128, Grafton, WI  53024. If you have no alternatives you may stop by the office and either call us from your car and we will come out or ring the bell and we will meet you at the door. Only staff is admitted into the building at this time.

As always you may call us at any time with questions.

Donahue & Associates LLC is a locally owned and operated small business that takes the roles we play in our community very seriously. Please be assured that your well being is of the utmost importance to us. As the situation evolves, we will keep you updated if our plans change.

Citations:

  1. IRS – March 30, 2020 https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know
  2. US Chamber of Commerce. COVID-19 Coverage: Resources & Relief info for Small Businesses – March 26, 2020.
    https://www.uschamber.com/co/start/strategy/families-first-coronavirus-response-act-guide
  3.  U.S. Senate Committee on Small Business & Entrepreneurship. March 2020. The Small Business guide to the CARES Act by Senator Ben Cardin. https://secureservercdn.net/166.62.115.136/748.ea8.myftpupload.com/wp-content/uploads/2020/03/F2CF1DD78E6D6C8C8C3BF58C6D1DDB2B.small-business-owner-s-guide-to-the-cares-act-final-.pdf
  4. U.S. Senate Committee on Small Business & Entrepreneurship. March 2020. Paycheck Protection Program FAZ’s for Small Businesses. https://secureservercdn.net/166.62.115.136/748.ea8.myftpupload.com/wp-content/uploads/2020/03/SBA-Paycheck-Protection-Program.pdf
  5. Vetter Buelow, Buikema Olson & Vliet, LLC. Legal Update. Retirement Plan Relief for Employees and Employers Under the CARES Act Legal Update. March 27, 2020 https://secureservercdn.net/166.62.115.136/748.ea8.myftpupload.com/wp-content/uploads/2020/03/Retirement-Plan-Relief-Under-the-CARES-Act_032720.pdf
  6. Tony Evers, Governor, Palm, Andrea Palm, Secretary. State of Wisconsin Department of Health Services Emergency Order #12 Safer at Home Order. March 24, 2020. https://evers.wi.gov/Documents/COVID19/EMO12-SaferAtHome.pdf