COVID-19 Keylin Response & Resources
Accounting and Bookkeeping Coronavirus Resources and Deadlines
Updated: April 1, 2020
Our Services
Due to the rising severity of COVID-19 and in an effort to protect ourselves, our staff and our clients, we will no longer be taking in-person appointments. All appointments will either be online, over the phone or by email. Our staff continues to work remotely and online appointments with clients have thus far been very successful! If you need to schedule an appointment, please click here.
Federal Deadline Postponed
On March 21, 2020, the Treasury Department and the Internal Revenue Service announced 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 amount owed.
To read the News Release from the Internal Revenue Service, click here.
Minnesota Deadlines Postponed
On March 23, 2020, the Minnesota Department of Revenue announced that taxpayers filing their annual Minnesota Individual Income Tax return for tax year 2019 will now have until Wednesday, July 15, 2020, to file their returns and make payments without any penalties or interest.
Minnesota has also granted extensions of time to pay for the following:
30-day Sales & Use Tax grace period for businesses required to suspend or reduce services
30-day grace period for Lawful Gambling Tax payments for organizations requesting an extension
60-day extension for MinnesotaCare tax returns for organizations that request an extension for their March 16 return.
For more information on Minnesota Department of Revenue’s response to the Coronavirus, visit their department website here. We will continue to update information on this page as it becomes available.
Families First Coronavirus Response Act
President Trump signed into law the Families First Coronavirus Response Act aimed at protecting Americans needing to take time off of work due to Coronavirus. The Act provides that small to mid-size employers must provide the following:
2 weeks of paid sick leave to anyone diagnosed with or quarantined for the Coronavirus (maximum of $511 per day);
2 weeks of paid sick leave to anyone caring for a family member diagnosed with or quarantined for the Coronavirus (maximum of $200 per day);
12 weeks paid sick leave to anyone caring for a child while schools are closed (maximum of $200 per day).
Businesses with less than 50 employees may be exempt from the above requirements. The Act also anticipates that any businesses who pay paid sick leave will be reimbursed for those payments within three months through a payroll tax credit.
The read the full act, click here.
APRIL 1, 2020 Updated Information regarding CARES Act
SMALL BUSINESS RELIEF
Emergency loans being offered to small businesses:
SBA Economic Injury Disaster Relief Loan. This is a loan and is not forgivable. The interest rate is 3.75% and can have long-term repayments up to 30 years. You have to apply and qualify for the program. You can access the application here.
Payroll Protection Program. The Payroll Protection Program was a program passed through the most recent legislation signed on March 27, 2020. The Payroll Protection Program is a forgivable loan available to small business owners who use funds for payroll, rent, utilities and other qualifying expenses. You have to qualify and apply for this program and you have to meet certain requirements in order to take advantage of the forgiveness provisions. The US Chamber of Commerce has summarized this program. If you are considering an Emergency Loan, or would like to obtain more information, please review their guide here.
We are still awaiting guidance on the deferment of payroll taxes for small businesses. What we do know, is that the act may allow the business owner to defer payment of employer Social Security Taxes until the end of 2020 - 2021. We do not yet have guidance on how this will be calculated or administered.
INDIVIDUAL RELIEF
The CARES Act contained many provisions regarding relief given to individuals.
Economic Impact Payment. Tax filers with an adjusted gross income of up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples. Parents with qualifying children may also receive $500 for each qualifying child. The payments will be calculated using individuals 2019 tax return if already filed. If you have not yet filed your 2019 tax return, the 2018 tax return will be used to calculate the payment amount. For more information and frequently asked questions, visit the IRS website here.
This is a non-exhaustive list of provisions. We are awaiting guidance from the various departments for many of the other items outlined in the act and will be sure to issue an update once we have that information.
The situation continues to change on a daily basis. We will continue to update this page as we become aware of any changes.
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