News
Coronavirus Resources
MKG will continuously post new information as it becomes available for our clients. Please check back often.
- For resource information pertaining to Small Business click here: Small Business
- For resource information pertaining to Unemployment click here: Unemployment
- For resource information pertaining to specific Tax Acts click here: Tax Acts
August 18, 2020
13.9 million Americans to receive IRS tax refund interest; taxable payments to average $18
This week the Treasury Department and the Internal Revenue Service will send interest payments to about 13.9 million individual taxpayers who timely filed their 2019 federal income tax returns and are receiving refunds.
This year's COVID-19-related July 15 due date is considered a disaster-related postponement of the filing deadline and the IRS is required, by law, to pay interest, calculated from the original April 15 deadline. The interest payments, averaging about $18, will be made to individual taxpayers who filed a 2019 return by this year's July 15 deadline and either received a refund in the past three months or will receive a refund.
By law, these interest payments are taxable and taxpayers who receive them must report the interest on the 2020 federal income tax return they file next year.
Learn more here.
August 13, 2020
Employee Retention Credit Eligibility Tool
The Employee Retention Credit is a refundable tax credit against certain employment taxes equal to 50 percent of the qualified wages an eligible employer pays to employees after March 12, 2020, and before January 1, 2021. For each employee, wages up to $10,000 can be counted to determine the amount of the 50% credit.
Employers, including tax-exempt organizations, are eligible for the credit if they operate a trade or business during calendar year 2020 and experience either:
- the full or partial suspension of the operation of their trade or business during any calendar quarter because of governmental orders limiting commerce, travel, or group meetings due to COVID-19, or
- a significant decline in gross receipts.
The credit applies to qualified wages (including certain health plan expenses) paid during this period or any calendar quarter in which operations were suspended.
The following are not eligible for the credit:
- Employers that received a Paycheck Protection Program (PPP) loan
- Wages that received a FFCRA credit for paid sick and family leave
- Employees that are allowed a Work Opportunity Tax Credit
- Wages that receive a credit under the paid family and medical leave act
To see if your business qualifies, click here for the Employee Retention Credit Eligibility Tool and answer a few short questions to instantly receive recommendations.
If you have any questions, please contact our office and we would be happy to assist you.
August 6, 2020
Paycheck Protection Program FAQ's on Loan Forgiveness
View here.
July 24, 2020
Michigan Small Business Restart Program
The Michigan Economic Development Corporation is administering the Small Business Restart Program that is providing grants up of $20,000 for working capital to support payroll expenses, rent, mortgage payments, utility expenses, and other similar expenses. To be eligible a business or nonprofit must have 50 or fewer employees, have a need for working capital and demonstrate an income loss as a result of the COVID-19 emergency. Businesses that received support from other COVID-19 relief programs, such as PPP or EIDL loans, are eligible to apply.
The application period is from July 15 to August 5, 2020, and expenses eligible must be incurred between March 1, 2020 and December 30, 2020.
At least 30% of the funds awarded will be to women-owned, minority owned, or veteran owned eligible businesses.
You can find the application and other information at https://www.michiganbusiness.org/restart.
Michigan Small Business Restart Program - Guidelines
FAQs for Michigan Small Business Restart Program
Michigan Small Business Relief Grant Application FAQ's
If you have any questions, please contact our office and we can assist you.
June 5, 2020
Paycheck Protection Program Flexibility Act, H.R. 7010
The Paycheck Protection Program Flexibility Act (PPPFA) was signed into law on June 5, 2020. The purpose of this bill is to ease the forgiveness requirements for the Paycheck Protection Program loans. Loan recipients will have looser restrictions as to how and when the funds need to be spent.
Learn more here.
May 19, 2020: SBA and Treasury Release Paycheck Protection Program Loan Forgiveness Application
Learn more here: https://home.treasury.gov/news/press-releases/sm1010
May 13, 2020: Payroll Protection Program FAQs - updated regularly:
April 14, 2020: IRS Economic Impact Payments Learn more here
Additional resources:
State of Michigan Coronavirus Resources
Michigan Unemployment Insurance Agency
April 1, 2020: Individual Tax Relief Provided by the CARES Act
An update on the tax-related provisions in the Coronavirus Aid, Relief, and Economic Security (CARES) Act
Read here
March 30, 2020: Economic impact payments: What you need to know
View here
March 21 and March 27, 2020
IRS and Michigan extend April 15 tax filing and payment deadline.
Federal: The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.
Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.
State: Michigan Governor Gretchen Whitmer has signed an executive order (EO 2020-26) that will extend the state tax filing and payment deadline amid the coronavirus pandemic from April 15, 2020 to July 15, 2020. This decision comes over a week after the IRS pushed back the federal tax filing deadline to July 15, 2020, and the state of Michigan has now committed to follow suit allowing residents and businesses additional time to file their income taxes.
*This includes Michigan cities as well. An annual city income tax return otherwise due on April 15 or 30, 2020, and any accompanying city income tax payment due with the return, will instead be due on July 15 or 31, 2020.
Link: https://www.michigan.gov/whitmer/0,9309,7-387-90499_90705-523380--,00.html
March 24, 2020: Office Closure
Due to Michigan governor’s “stay at home” order due to the coronavirus pandemic, our offices will be closed until April 13, 2020.
Our professionals are temporarily working remotely, to protect the health and safety of our colleagues and clients. We remain committed to delivering quality service to our clients. E-mail will be the most efficient way to contact us and you can find this information here: MKG Email addresses.
To protect both our staff and our clients against virus spread, we are recommending that where possible, we conduct information sharing using electronic options. To provide us with documents, you can send items through our Client Portal, available on our website. We are also available to provide your completed tax return via portal as well. To get set up on the portal please email abrazelton@mkgpc.com or call either office. Click here for Portal information
