COVID-19 Response Center

Freed Maxick's commitment to you during the COVID-19 crisis.


As we are in the midst of a global pandemic, be assured that the health and well-being of our clients, team members, colleagues and their families are of utmost importance to us. As we are keenly aware of the acute challenges businesses and employers are facing in connection with the coronavirus outbreak, we have formed dedicated internal teams and resources to focus on the following areas:

  • Small business cash flow needs, including integration of the various Small Business Administration loan programs in the CARES Act with federal and state tax deferral programs;
  • Employer and employment needs, including integration with the Families First Coronavirus Response Act;
  • Individual needs, including individual rebates and retirement plan relief; and
  • Specialized industry response related to: Agribusiness, Healthcare, Non-profit, Real estate, Financial institutions, Manufacturing, wholesale, and distribution

This legislation is complex, evolving and will unfold over the next several weeks and months, but we are working constantly to be a resource for our clients and communities in this time of need to provide clear and concise guidance. Please reach out to your Freed Maxick engagement leader for more information and stay tuned for updates to this resource center. Contact us to discuss planning ideas applicable to your situation.

To learn more about how Freed Maxick is currently operating, click here for our remote workforce communication.

Latest COVID-19 News

Emergency Rural Health Care Program Analysis | Freed Maxick

Enacted in March 2021, the American Rescue Plan (ARP) Act was designed to combat the economic crisis caused by the COVID-19 pandemic. The $1.9 trillion package had a variety of…

ERHC-Program

Enacted in March 2021, the American Rescue Plan (ARP) Act was designed to combat the economic crisis caused by the COVID-19 pandemic. The $1.9 trillion package had a variety of mechanisms to deliver assistance to the American people via several federal agencies. The Department of Agriculture has recently unveiled the Emergency Rural Health Care (ERHC) program which is to provide immediate assistance to rural health care providers that have been affected by the pandemic as well as to improve health care delivery related to COVID-19.

This program provides up to $500 million in grant funding to help broaden health care access and improve community health outcomes as it pertains to the COVID-19 pandemic. Applicants will be awarded between $25,000 and $1 million for their respective grants.

Applications are due by October 12, 2021 and will continue to be accepted so long as funding remains available.

Who is eligible to apply for the ERHC grant?

Eligible applicants may consist of public bodies, community-based nonprofit corporations, and federally recognized tribes located in an eligible rural area.

What constitutes as an eligible rural area?

The term ‘rural area’ is defined in section 343(a)(13)(C) of the Consolidated Farm and Rural Development Act. A rural area may mean “…any area other than a city, town, or unincorporated area that has a population of greater than 20,000 (i.e. a population of not more than 20,000)." For purposes of the grant, population can be measured based upon the latest U.S. Census data.

Those statistics may be adjusted to exclude long-term prison populations as well as up to 1,500 service members living in government quarters on a military installation.

Applicants can be headquartered in urban areas and request funds for facilities located in – and primarily serving – rural areas.

What can the ERHC grant funds be used for?

Funds must be utilized in correlation with the COVID-19 pandemic, and there are a variety of uses that applicants can utilize the funds for, such as increasing capacity for vaccine distribution or increasing telehealth capabilities, but most notably is the potential to be reimbursed for health care-related lost revenue used to maintain capacity during the coronavirus pandemic. While the Provider Relief Funds (PRF) were primarily utilized for this purpose, many providers still had lost revenues in excess of the funds received via PRF. IMPORTANT: Applicant requests for reimbursement of lost revenue must also include a certification from a certified public accountant confirming that the calculation of lost revenue is accurate.

It is also important to note is that these funds are prohibited from being utilized for a number of purposes, including but not limited to:

  • Expenses or losses reimbursed (or obligated to be reimbursed) from any other sources (i.e. losses previously reimbursed through PRF);
  • Expenses related to staffing needs exceeding annual salaries of $100,000 as prorated over the applicable time period; or
  • Payments for existing indebtedness unrelated to COVID-19

How are the ERHC grant awards calculated?

Applicants will be limited to percentages of the respective project cost (or lost revenues) ranging from 15% to 75%. Factors include total population of the eligible rural area and the median household income of the area.

What does my organization need to apply?

Nonprofit applicants must provide the following items in conjunction with their application:

  • Articles of incorporation
  • By-laws
  • Evidence of good standing
  • Evidence of ties to the local rural community as demonstrated by:
    • Close association with or control by a local unit of government; or
    • Broad-based ownership and control by members of the community, demonstrated through a listing of the board members that represent the community; or
    • Substantial public funding as demonstrated through taxes, revenue bonds, local government sources, or community-wide fundraising campaigns.
  • Evidence of eligibility including:
    • Location of the facility and associated population demographics
    • Description of the service area
    • Evidence the facility primarily serves rural residents

Freed thoughts

While the items required for submission to the Emergency Rural Health Care (ERHC) program may be slightly more than what providers have previously had to submit for other rounds of funding, most providers’ lost revenue calculation has already been performed for the year ended December 31, 2020. Any lost revenue calculated for 2021 should follow the same methodology.

If you have any questions or need additional guidance, Freed Maxick Healthcare can help. Please contact Chirico Rozsa at 716.847.2651 or utilize our contact form.

Healthcare Provider COVID-19 Relief Funding | Freed Maxick

On September 10, 2021, Heath and Human Services (HHS) announced the availability of an additional $25.5 billion of funding for health care providers. Included in the package is $17 billion…

Healthcare Funding

On September 10, 2021, Heath and Human Services (HHS) announced the availability of an additional $25.5 billion of funding for health care providers. Included in the package is $17 billion of additional Provider Relief Funds (PRF) for a Phase 4 tranche, as well as $8.5 billion in American Rescue Plan (ARP) funding. On September 29, 2021, providers can begin their application process.

What are these COVID-19 relief funds for?

The Phase 4 distribution is meant to continue funding lost revenues and COVID-19 related operating expenses incurred between July 1, 2020 and March 31, 2021. This specific distribution is designed to provide additional support to smaller providers by reimbursing a higher percentage of lost revenues and COVID-19 related expenses as compared to larger providers.

The ARP funding is targeted to assist providers who service Medicaid/CHIP and Medicare beneficiaries living in rural areas as defined by the Federal Office of Rural Health Policy. Similar to the Phase 4 funding, the ARP is designed to provide additional support to providers that service Medicaid/CHIP patients, by utilizing the oftentimes higher Medicare reimbursement rates.

How do I know if my healthcare organization is considered ‘rural’?

Health Resources & Services Administration (HRSA) has provided an online tool that will assist providers in determining whether their organization can be considered. Click here for the HRSA eligibility analyzer.

What kinds of healthcare providers are eligible for this COVID-19 relief?

While acute care hospitals and skilled nursing facilities are the most thought of ‘providers’, any provider or supplier of health care is eligible.

What should my organization be doing?

Prior to the application process, HHS recommends that your organization gathers any supporting information such as recent tax documents and financial statements related to the second half of 2020 and first quarter of 2021.

Does my organization need to apply for PRF and ARP separately?

No. HRSA is allowing providers to apply for both payment streams in a single application.

Freed thoughts

Although HHS has not released official guidance regarding what these funds may be used for, signs point to them following the same terms and conditions from Phases 1-3 of the PRF General Distributions. Therefore, if you have any lost revenue and/or increased expenses that will not be covered by the funding you have already received from HHS, FEMA, PPP, and other sources, we recommend that you apply.

If you have any questions or need additional guidance, Freed Maxick Healthcare can help. Please contact Chirico Rozsa at 716.847.2651 or utilize our contact form.

Remote Work State Tax Compliance | Freed Maxick

Yet another unpleasant side effect of the COVID-19 pandemic and the ongoing battle with its variants is the potential state income/franchise, sales, and payroll tax consequences related to remote workers.…

Remote Workers

Yet another unpleasant side effect of the COVID-19 pandemic and the ongoing battle with its variants is the potential state income/franchise, sales, and payroll tax consequences related to remote workers. Remote workers can create tax compliance issues for both the employer and for themselves. Consider the following:

1.) Remote workers can create physical nexus in another state subjecting the employer to another state’s income/franchise, sales and/or payroll tax filing requirements.

2.) Remote workers may subject themselves to another state’s income tax. The employer may be required to register and withhold state income tax on behalf of their remote workers. The remote worker may be entitled to claim a resident credit to avoid double tax.

3.) Six states: Arkansas, Connecticut, Delaware, Nebraska, New York, and Pennsylvania, employ a “convenience of the employer rule”. Massachusetts temporarily employed this rule during the pandemic. Under this rule, employees are taxed by the employer’s home state where they normally work if the employee is working remotely for their own convenience. Grace period’s that certain states employed during the pandemic are expiring which may result in double tax paid by the remote worker.

4.) Some states include payroll as a factor when apportioning income to their state. Remote workers increase the payroll factor which increases state income/franchise tax liability.

5.) Due to the lack of uniformity among states, employers must address the specific rules that apply in those states to determine whether to register for income/franchise, sales, and/or payroll taxes, and whether to withhold and remit payroll taxes to those states. This will increase the cost of state tax compliance.

New Approach to Remote Work State Tax Compliance

Due to the pandemic, it is necessary for employers to address whether additional state tax compliance is required when employees are working remotely during the year in other states. Employers should develop a process to track the work location of their employees during the year to determine if/when the employer is required to comply with the tax laws in another state. The employer may be required to register as “doing business” for income/franchise, sales and payroll taxes based on the physical presence of remote workers in another state.

The Tax Team at Freed Maxick can assist in determining the state tax consequences of your remote workforce. For a complimentary discussion of your situation, please contact me at don.warrant@freedmaxick.com, or reach me by phone at 716.847.2651.

COVID-19 Recovery Guidance for Small Businesses | Freed Maxick

6 Recommendations to Help Your Small Business Recover from COVID-19 The COVID-19 Pandemic caused many small businesses to struggle or close, and has demonstrated the importance of having a Business…

COVID19 Business Continuity

6 Recommendations to Help Your Small Business Recover from COVID-19

The COVID-19 Pandemic caused many small businesses to struggle or close, and has demonstrated the importance of having a Business Continuity Plan (BCP) in place. According to the United States Small Business Administration, 90% of businesses fail within two years if they’re unable to restore their operations within 5 days after the disaster. In other words, the longer the recovery takes, the greater the risks of permanent closure.

Recovering from a disaster like COVID-19 has affected all industries, particularly those classified as a small business. According to the Washington Post, 100,000 small businesses were forced to close permanently due to the COVID-19 pandemic.

Small Business Majority

Source: Small Business Majority

COVID-19 Guidance: Getting Your Business Operations and Finances Back to Normal or to a “New Normal”

Having a Business Continuity Plan (BCP) and Disaster Recovery (DR) in place can help lessen impacts and speed recovery for returning to normal or creating a new normal.

Here are five recommendations from the Freed Maxick Risk Advisory Team for achieving these ends:

1.) Assess the Financial Damage

The first step in getting your business back to normal or to a new normal is determining how deeply your small business has been affected. While only a small number of businesses can say they benefited from the pandemic, it’s possible the damage you have incurred is not as bad as you believe. Updating financial statements can show the true affect this disaster has had on your small business, like a current and accurate profit and loss statement.

When assessing damages, you or your advisors need to factor in expenses cut during the pandemic, such as laying off employees, cutting advertising or marketing or loss of customers to competitors. Identifying these problem areas can help you rebuild faster and help recognize the areas you need to recover. For example, if you laid off employees, then you will need to assess the operating effectiveness of your current employees to determine if new employees need to be hired. Also, if you cut advertising or marketing costs you may assess whether you need to reintroduce these costs into your budget or if another approach is necessary.

2.) Take a Fresh Look at Your Business Plan

While your business may have been successfully running pre-COVID, it’s likely that the pandemic highlighted problem areas in which you may need to fine-tune. Consider how your business needs to operate in the new normal. Looking at your competitors can give you insights as to how changing business operations can help you succeed - or not succeed - post-COVID. Your CPA or other advisors can help with strategic business planning.

3.) Get the Funding You Need to Recover

Unless you had a large amount of cash on hand prior to the pandemic, you may need some working capital to stimulate your business operations. When it comes to financing your small business during COVID, there are several options to consider, like the Paycheck Protection Program that provides funding to small businesses struggling to retain their employees.

Economic Injury Disaster Loans can also help with short-term financing for things other than employee retention. Funding is limited for these government sponsored options, therefore, talk with your CPA or other financial advisor to discuss loan options for rebuilding efforts.

Budget Spending4.) Revamp Your Budget to Account for New Spending

Everyone has heard the saying that you must spend money to make money. This is also true when rebuilding your business. You may have to spend money on hiring and training employees to function in the new normal. Inventory may need to be purchased and you may need to invest in new marketing and advertising again to draw customers back. As part of rebuilding, you should have a clear idea of what you will need in your budget and what costs can be cut to make the most out of your revenue and cash flow.

5.) Develop a Timeline for Rebuilding

You may have a list of things you want or need to do to recover from the pandemic, but prioritizing and creating a timeline for rebuilding is the best way to track, monitor and complete all of your projects. According to Infrascale, 1 in 6 small business executives don’t know their own recovery objectives.

Identifying these objectives should be reflected in your timeline for rebuilding. Your first goal should be to secure funding for your business. Once you’ve done that, setting a timeline for rehiring employees, restocking inventory, and reopening your doors should be next. Tracking your progress is a crucial step to determine if changes are necessary. You may want to start with weekly check-ins to see what’s working and what’s not. Then, you can review your financials monthly as things begin to stabilize.

Create a Contingency Plan for the Next Crisis

While the coronavirus pandemic may seem like a once-in-a-lifetime event, the reality that disasters and emergencies can happen to a business is not out of the realm of possibility. Take what you have learned from this current disaster and use it to prepare for the next crisis.

Building up liquid cash flow may be a priority if you had little or nothing set aside prior to the pandemic. You can choose to focus on debt and cost-trimming to keep your budget in check, or you may need to find ways to help your staff work more efficiently to cut operating costs. Having a Plan B can help improve your business’s odds of surviving the next disaster or emergency.

Get More Information and Guidance on COVID-19 Business Recovery Planning

The Coronavirus may have caused your small business to struggle, but it does not have to fail due to this unfortunate event. If you want to develop a Business Continuity Plan and/or Disaster Recovery, or you would like further advice on how to return your small business back to normal, we are available to help. For a complimentary consultation, please contact us via form; call me at (716) 332-2761, or email me at nicole.fitzgerald@freedmaxick.com.

Employee Retention Credit in 2021 | Freed Maxick

Did you start a business after February 15, 2020? If you can answer “yes”, you MAY be eligible for a maximum $50,000 per quarter refundable Employee Retention Credit in Q3…

Employee Retention Credt 2021

Did you start a business after February 15, 2020? If you can answer “yes”, you MAY be eligible for a maximum $50,000 per quarter refundable Employee Retention Credit in Q3 and Q4 of 2021, for a grand total of $100,000.

The Employee Retention Credit for tax year 2021 is a refundable payroll tax credit based on 70% of qualified wages paid to each employees up to a maximum credit amount of $7,000 per employee, per quarter ($10,000 of wages per employee per quarter). Employers claiming ERC under the Recovery Startup Businesses clause are limited to a maximum credit claim of $50,000 per quarter in total.

As part of the American Rescue Plan Act signed into law in March 2021, there are enhanced provisions for Q3 and Q4 for “Recovery Startup Businesses” to be eligible for the Employee Retention Credit without having to show a significant decline in gross receipts or a full or partial suspension of operations due to a Government order.

If this is the first time you’ve heard about the Employee Retention Credit, please review our previous blogs to learn more:

What is a “Recovery Startup Business”?

The term “Recovery Startup Business” identifies any employer that:
  • a) Began carrying on any trade or business after February 15, 2020,
  • b) Whose average annual gross receipts for the 3-taxable-year period ending with the taxable year which precedes the calendar quarter for which the credit is determined under subsection (a) does not exceed $1,000,000.

Gross Receipts Test for Recovery Startup Businesses

The gross receipts rules will mainly apply to recovery startup businesses whose owners operate and own other trade or businesses that have been in operation prior to 2/15/20. The gross receipts test requires aggregation of all related business and entities based on common ownership to prevent an established business with average gross receipts over $1M from starting a “new” entity just to claim the credit.

If you are an entrepreneur who decided to start a new business and hire employees after February 15, 2020, you could be eligible for a potential $100,000 refundable tax credit. However, each situation is different, so facts and circumstances must be evaluated on a case by case basis to determine eligibility and to be aware of the limitations.

The 2/15/20 Line of Demarcation

Startup business established after 2/15/20 were not eligible for the Paycheck Protection Program so they missed out on up to two rounds of enormous government relief during the pandemic. To reward new businesses that started over the last 18 months, the Employee Retention Credit for Recovery Startup Businesses, represents the government’s effort to level the playing field for new businesses that previously missed out on government relief.

Additional Insight and Guidance

If you believe you might be eligible for the Employee Retention Credit as a Recovery Startup Business, The Freed Maxick Tax Team is prepared to help you navigate through the program and are available for a complementary consultation to this end.

Business Continuity Plan vs. Disaster Recovery | Freed Maxick

In an unpredictable world, many things can occur that were not planned, such as natural disasters, ransomware attacks, power outages, and many more. Many businesses have faced disasters or unplanned…

BCDR

In an unpredictable world, many things can occur that were not planned, such as natural disasters, ransomware attacks, power outages, and many more. Many businesses have faced disasters or unplanned events and have come to realize their company’s Business Continuity Plan (BCP) and Disaster Recovery (DR) are not as effective as they need.

No one can anticipate a disaster. That is why it is important to always be prepared for a disaster or catastrophic event.

  • A 2020 survey found that 51% of companies do not have a business continuity plan (Source: Mercer via Economic Times).
  • A break in continuity can cost a small business $10,000 per hour at minimum (Source: Datto).
  • One in 5 small and medium-sized business executives do not have a recovery plan in place (Source: Infrascale). An effective BCP/DR can help minimize the effects of such an event.

While Business Continuity Planning and Disaster Recovery Planning may be interdependent, these two concepts are not the same. It is important to note they overlap in many areas and work best when are developed together. It is also important to know the differences between a BCP and DR plan to know how to successfully prepare each plan.

What is a Business Continuity Plan?

A business continuity plan (BCP) is a document that outlines how a business will continue operating during an unplanned disruption in service. Business continuity planning provides contingency plans which outline procedures and instructions an organization must follow, covering business processes, assets, human resources, business partners and more. Some BCPs include planning for smaller interruptions or minor disasters, such as extended power outages.

What is Disaster Recovery?

Disaster Recovery (DR) is the process of resuming normal operations following a disaster by regaining access to data, hardware, software, networking equipment, power and connectivity. DR includes measures a business must take to respond to an event and return to normal operation as quickly as possible. This can involve communicating with employees about the event, what they are expected to do, and a plan on how to continue business after the event.

business continuitySimilarities between Business Continuity and Disaster Recovery

Both are proactive strategies that help a business prepare for a sudden event or disaster. Instead of being reactive plans, BCP and DR both take preemptive approaches, seeking to minimize the effects of the disaster before it occurs.

Both require regular review and testing in order to ensure the plan is effective. It may involve some revision or modification when testing or reviewing by management as needed.

Differences between Business Continuity and Disaster Recovery

Business continuity focuses on keeping a business operational during a disaster, while disaster recovery focuses on restoring data access and IT infrastructure after a disaster. Put simply, business continuity is concerned with keeping the business running during a disaster while disaster recovery is concerned with returning to normal as quickly as possible.

Business 2Unlike business continuity plans, disaster recovery plans may involve creating additional safety measures for employees, such as fire drills or purchasing emergency supplies. Combining the two allows a business to focus on the safety and maintenance of the business and its employees.

An effective Business continuity plan limits the operational downtime, whereas an effective disaster recovery plan limits inefficient system function. Only by combining the two can a business thoroughly prepare for a disaster or catastrophic event.

Some businesses may include disaster recovery plans as part of the overall business continuity plan. Disaster recovery is one step in the overall process of safeguarding an organization against all emergencies or events.

More Information on Business Continuity and Disaster Recovery

Many types of events can cause an organization to deploy a business continuity plan or disaster recovery plan, these deployments have shown many businesses that they need further revision or modification of the current plan in place. According to FEMA, 40% - 60% of small businesses never reopen after a disaster. The importance of having a BCP and DR are tremendously vital for the success of your business. Many businesses may not know the differences in both plans and only have one in place. Preparing for a disaster or event requires a business to have both BCP and DR plans in place to ensure their operational functions are best prepared for any event or catastrophe.

If you are concerned about your business’s ability to recover from a disaster or want advice on the strength of your Business Continuity Plan and/or Disaster Recovery, our risk consulting team is available to help. For a complimentary consultation, please contact us via form here; call me at (716)332-2761, or send an email to nicole.fitzgerald@freedmaxick.com.

If the Coronavirus has caused your small to medium-sized business to encounter problems, please visit our Coronavirus Resource Center to learn what you can do to recover from this disaster.

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New Federal and New York State Tax Benefits

Understanding the tax policy response to COVID-19

Tax relief policies at the federal, state and international levels are taking shape to help businesses recover from COVID-19 disruptions. Our COVID-19 Tax and Regulatory Relief resource center features the the most current information and analysis from our professionals, with the goal of addressing your immediate needs. From cash flow challenges to ensuring your employees are taken care of, Freed Maxick has provided these resources to help your business develop its response to the environment created by the coronavirus pandemic.

Families First Coronavirus Response Act

The Families First Coronavirus Response Act (the Act) was signed into law late on March 18, 2020, soon after the Senate passed the amended House bill sent to the Senate on March 17, 2020.

Families First Coronavirus Response Act Q&A

As provided under the legislation, the U.S. Department of Labor will be issuing implementing regulations. Additionally, as warranted, the Department will continue to provide compliance assistance to employers and employees on their responsibilities and rights under the FFCRA.

CARES Act – Coronavirus Stimulus Bill

On March 27, 2020, the President signed the Coronavirus Aid, Relief and Economic Security Act (CARES Act) into law. The CARES Act is a massive $2 trillion bill with an array of significant tax-saving provisions that impact both individuals and businesses and hopefully create needed cash flow. The CARES Act also could affect prior tax years.

CARES Act Provides Technical Amendment to Qualified Improvement Property

The 2017 Tax Cuts and Jobs Act (“TCJA”) amended IRC section 168(k) to eliminate qualified improvement property (“QIP”) as a specific category of qualified property eligible for additional first-year depreciation known as “bonus depreciation."

Use of Retirement Funds Under the CARES Act

Section 2103, Special Rules for Use of Retirement Funds of the “Coronavirus Aid, Relief, and Economic Security Act” or the “CARES Act” allows tax favored withdrawals from retirement plans and changes to loan provisions for those individuals directly impacted by COVID-19. Whether you are a Plan Administrator or a participant in a retirement plan it is important to understand these benefits.

The CARES Act: Elections Under Business Interest Limitation Rules Amended By IRS

On March 27, 2020, President Trump signed the Coronavirus Aid, Relief, and Economic Security “CARES” Act into law. The $2 trillion CARES Act contains an array of tax provisions designed to increase deductions that are available to businesses, and by doing so, generate cash flow during the coronavirus (COVID-19) crisis.

CARES Act: IRS Issues Guidance on Deferral of Employer Social Security Taxes

The recently enacted $2 trillion Coronavirus Aid, Relief, and Economic Security Act (CARES Act) contains a provision which allows employers to defer the deposit and payment of the employer’s share of Social Security taxes, as well as certain railroad retirement taxes. Now, the IRS has issued additional guidance clarifying this.

CARES Act Provides Added Value to Net Operating Losses (NOLs)

By now we have all heard about the various stimulus and relief packages deployed by the government aimed at providing economic and fiscal relief to businesses of all sizes as well as individuals facing hardships during this challenging time. Included in the CARES Act were several income tax provisions aimed at providing liquidity and relief, specifically the provisions regarding net operating losses (NOLs).

New Federal and New York State Business Relief Programs

Understanding your options

On March 27, 2020, the President signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), a $2 trillion stimulus package thought to be the largest in U.S. history.  The CARES Act expands or establishes multiple loan programs for qualifying businesses, including the new SBA Paycheck Protection Program, the expansion of the Small Business Administration (SBA)’s existing Economic Injury Disaster Loans (EIDL) program and an additional program focused on mid-size businesses with 500-10,000 employees backed by $500 billion from the US Department of the Treasury’s Exchange Stabilization Fund to make loans, loan guarantees and other investments to provide liquidity to eligible businesses, states and municipalities.

Paycheck Protection Program

Click the link below to see all Freed Maxick content and insight related to the Paycheck Protection Program.

SBA Disaster Loan Program

In an effort to minimize economic impacts on small businesses resulting from the COVID-19 (coronavirus) pandemic, the Small Business Administration (SBA) is providing Economic Injury Disaster Loans (EIDLs) to small businesses in designated states and territories.

Federal Government Expands Access to Loans for Small and Midsize Businesses Under Title IV of the CARES Act

Under certain conditions and with appropriate certifications, your business may be eligible under the CARES Act to receive a loan through the federal government to help you through the Covid-19 crisis. Although funds under the Main Street Business Lending Program have not yet been distributed, guidance for borrowers has been issued in preparation for the funding flow to be initiated.

Unemployment Insurance Benefits in NYS Under the CARES Act

In response to the Coronavirus Pandemic, on March 27, 2020, President Trump signed the Coronavirus Aid, Relief and Economic Security (CARES) Act, a $2 trillion stimulus bill. The Relief for Workers Affected by Coronavirus Act – which is the unemployment insurance (UI) portion of the Act – provides enriched unemployment benefits to eligible claimants.

Federal Reserve Announces an Expansion of Scope and Eligibility of the Main Street Lending Program

On April 9th, the Federal Reserve provided details regarding actions they were taking to support small and mid-sized businesses impacted by the coronavirus pandemic. One of these programs was the Main Street Lending Program (MSLP or the Program).

FASB Provides Guidance on COVID-19 Related Lease Concessions

With the uncertainties surrounding the COVID-19 pandemic, the Financial Accounting Standards Board (FASB) has received several questions from stakeholders about the application of Topics 840 and 842, Leases. Specifically, the inquiries pertain to the accounting and disclosure of new lease concessions in previously executed contracts, as a result of the pandemic.

Regulation Compliance Reliefs

What you need to know

COVID-19 is presenting challenges for many companies. To address these challenges, many regulators/agencies have issued orders, releases and statements which allow, subject to certain conditions, companies to take advantage of any applicable relief. Companies need to ensure they meet all applicable criteria and are in compliance with the requirements.  Companies also need to consider matters related to financial reporting.  Freed Maxick has provided the resources below help you address these concerns.

April 15, 2020 Due Date Information

The 2019 income tax filing and payment deadlines for all taxpayers who file and pay their Federal income taxes on April 15, 2020, are automatically extended until July 15, 2020. This relief applies to all individual returns, trusts, and corporations. This relief is automatic, taxpayers do not need to file any additional forms or call the IRS to qualify.

Financial Statement Considerations

The effects of the coronavirus are evolving rapidly (hour-by-hour, day-by-day) and are unique for each entity's circumstances. The following is a high-level overview of a few matters related to financial reporting for consideration during this critical time.

New York State Tax Extension Update

New York has extended the April 15 due date to July 15, 2020, for personal income tax and corporation tax returns originally due April 15, 2020, due to the coronavirus pandemic. The extension applies to returns for individuals, fiduciaries, and corporations. In addition, taxpayers are allowed to defer all related tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed.

Regulators and Agencies Extend Much-Needed Regulatory Relief to Businesses

COVID-19 is presenting challenges for many companies. To address these challenges, many regulators/agencies have issued orders, releases and statements which allow, subject to certain conditions, companies to take advantage of any applicable relief. Companies need to ensure they meet all applicable criteria and are in compliance with the requirements outlined below, as in many cases, extensions are not automatic.

IRS Extends More Tax Deadlines

To help taxpayers, the Department of Treasury and the Internal Revenue Service announced today that Notice 2020-23 extends additional key tax deadlines for individuals and businesses.

FASB Proposes Lease Standard Deferral

On April 8, 2020, the FASB issued a proposal to defer the effective date for ASU 2016-02, Leases, and its subsequent amendments. For private companies and private not-for-profits, the standard would be effective for fiscal years beginning after December 15, 2021. For public not-for-profits (i.e. those that have issued, or are conduit bond obligors for, public debt) the standard would be effective for fiscal years beginning after December 15, 2019, so long as the entity has not yet issued financial statements.

Industry Updates

Industry specific direction and guidance

Financial Institutions

Click the link below to find Financial Institutions related COVID content.

Healthcare

Click the link below to find Healthcare related COVID content.

Higher Education

Click the link below to find Higher Education related COVID content.

Non-Profit

Click the link below to find Non-Profit related COVID content.

Real Estate

Click the link below to find Real Estate related COVID content.

Business Continuity in the COVID-19 Environment

Business Continuity in the COVID-19 Environment

To ensure business continuity it is important to react quickly to mitigate impacts and other risks and to prepare the organization for the further disruptions related to the COVID-19 Pandemic. Managing business continuity includes concerns around infrastructure, cybersecurity, remote employees, business, operational and communication risks, with the aim of managing an organization through new challenges and risks while maintaining continuity of operations and production.

Notification of Enforcement Discretion for Telehealth Remote Communications During the COVID-19 Nationwide Public Health Emergency

On March 17, 2020, the Office for Civil Rights (OCR) announced the “Notification of Enforcement Discretion for Telehealth Remote Communications During the COVID-19 Nationwide Public Health Emergency.” This notification provided guidance on the use of video conferencing technologies to provide telehealth services to a health care providers patients, and communicates the OCR’s official stance on the issue as the country continues to address the COVID-19 pandemic.

Why is Privileged Access Management Important for Your Organization?

With evolving and steadily increasing cyber-attacks, many organizations are not taking steps to stop the abuse of privileged credentials. A recent survey from Centrify, a privileged access management (PAM) company, suggested that of the 1,000 IT decision makers surveyed in the U.S. and U.K., 74% of breaches involved access to a privileged account.

Adapting to a Remote Work Environment

For much of the workforce, life has changed drastically over the past few weeks. The combination of school closings and mandatory work from home orders can have a significant impact on your ability to stay focused and productive. We have put together some suggestions to help you adjust to your new normal. Ultimately, we are all a bit different and you have to find what works best for you, but here are a few suggestions to get you started.