Today, we’re sharing highlights from the news; PPP funding, Q2 tax estimates and expanded unemployment benefits. All three stories help individuals and businesses move toward economic recovery.
Senate Approves Additional PPP Funding
The Senate approved $484 billion in additional funding as part of the COVID-19 pandemic relief bill. $370 billion will be administered by the SBA, including $310 billion to replenish the Paycheck Protection Program (PPP) and $60 billion to replenish the Economic Injury Disaster Loan program (EIDL). Of the $60 billion for the EIDL, up to $10 billion has been earmarked to replenish the grants of up to $10,000 that are an element of the EIDL program.
The Bill now moves to the House, where it’s expected to pass when the House reconvenes on Thursday and should be signed by the President soon thereafter.
Q2 Estimated Tax Payments Due July 15, 2020
While the due date for federal and most state tax returns and tax payments was extended to July 15, 2020, the Q2 payment was unmoved until recently. This left filers in the awkward position of having to pay Q2 estimates in June, before their Q1 2020 or 2019 liability payments were due. The due date for filing federal, and most state (including Massachusetts), Q2 estimates has now been extended to July 15, 2020, as well. The extension applies regardless of whether the deadline was the original due date or because of a valid extension.
Pandemic Unemployment Assistance (PUA) for Gig Economy Workers and the Self-Employed
The CARES Act created the Pandemic Unemployment Assistance program (PUA) designed to assist the self-employed, independent contractors and gig economy workers to receive unemployment benefits through the state that they would not otherwise be eligible to receive. Beginning on February 1, or the date when they were first unable to work due to COVID-19, these individuals would be eligible to receive unemployment benefits for up to 39 weeks.
On Monday April 21st, Massachusetts began taking applications for unemployment benefits from self-employed individuals. To learn more about the program or to apply, visit their site.
by Steven Gallant, CPA