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At SobelCo we have one goal and that is to keep you well-informed by providing you with accurate, up-to-date information, details, and suggestions that will help you respond to, and recover from, the impact of the coronavirus on you, your business, your family, and your community.

To achieve this in the most efficient and meaningful manner, we have created this webpage for you, filling it with specific news for both the corporate and nonprofit communities. To ensure that you remain informed across a wide range of critical areas, we will continue to identify the most pertinent discussions - while also passing along the resources you most need, including articles, hotline numbers, press releases, websites, and more.

If you have any questions, or seek additional insights, please let us know. Based on your feedback we can continue to edit and reinforce our communications as necessity dictates. 

 

Have a question or need advice? The SobelCo COVID-19 team is here to help!

Contact Us

Tax Information

In our ongoing effort to bring you the most current and accurate business and financial news, we are sharing this information with you. As changes occur, we will keep you informed!

 

Coronavirus Aid, Relief, and Economic Security Act (CARES Act) 

IRS Released Provisions of Relief

  • Federal income tax returns normally due on April 15, 2020 are not due until July 15, 2020. The July 15, 2020 due date can be extended to October 15, 2020 by filing Form 4868, Extension of time.
  • Individual or corporation quarterly estimated tax payment due on or after April 1, 2020, and before July 15, 2020, have been extended to July 15, 2020. 

Click here to visit the IRS website for more information 

Click here to visit the AICPA website for information on State filings deadlines

The Internal Revenue Service (IRS) has announced that it will not be processing paper tax returns until further notice. They are encouraging taxpayers to electronically file their returns.  If you have already submitted your return via paper, please do not resubmit a second copy or write to the IRS regarding the status. 
They will resume processing once the tax agencies have reopened.

New Jersey extends the April 15th deadline

The New Jersey Legislature passed a bill to extend the April 15, 2020 personal income tax and corporate business tax filing and payment deadlines to July 15, 2020.

What has been extended:

  • 2019 gross income tax returns and payments, including trusts
  • 2019 corporate business tax returns and payments
  • First quarter 2020 GIT/CBT estimated tax payments
  • First quarter 1041 estimates
  • Partnership returns and payments
  • Partnership filing fees and licensed professional fees
  • Penalties and interest will not be imposed on the balance of 2019 income tax due between the original due date and July 15.

What has NOT been extended:

  • Second quarter 2020 estimated tax payments, still due June 15
  • Sales and use tax filings and remittances
  • Payroll tax remittances (including those imposed by the New Jersey Department of Labor and Workforce Development)
  • Inheritance taxes 

Sales and Use Tax

  • New York has announced information regarding the abatement of penalties and interest for sales and use tax due to the Novel Coronavirus, COVID-19. We suggest you click to the link for details as they stand today: https://www.law360.com/tax-authority/articles/1256177/ny-offers-sales-tax-relief-in-response-to-covid-19

  • There has been no sales and use tax guidance issued as yet from New Jersey, in both Connecticut and Pennsylvania, the deadlines have been extended to July 15, 2020 for payments due for 2019 as well as for first and second quarter 2020 estimated payments.

 Understanding Section 139

Financial Business Support

Small Business Administration (SBA) 

The SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%, however, this is subject to some changes in the future. 

For additional information, please contact the SBA disaster assistance customer service center. Call 1-800-659-2955 or visit the Office of Disaster Assistance website for more information.

New Jersey

The State of New Jersey has established a special website devoted to business concerns during the coronavirus emergency. The site, cv.business.nj.gov, will be updated as new information becomes available. New Jersey is now certified to begin accepting Disaster Loan applications from NJ businesses impacted economically by COVID-19.

New Jersey Business Action Center 

Business owners can also call the hotline for the New Jersey Business Action Center at 800-JERSEY-7 

New York

The City of New York will provide relief for small businesses experiencing a reduction in revenue because of COVID-19. Businesses with fewer than 100 employees who have seen sales decreases of 25% or more will be eligible for zero interest loans of up to $75,000 to help retain employees and ensure business continuity. More information can be found by clicking here.

The City is also offering small businesses with fewer than 5 employees a grant to cover 40% of payroll costs for two months to help retain employees.

Additional Expense Line for Items Directly Related to COVID-19

In response to the economic impact of the coronavirus pandemic, we are advising business owners and senior leaders to create an additional expense line for items directly related to COVID-19.  Here is what you need to know regarding capturing the information on anything related to COVID-19:

  • Include what you are spending for supplies
  • Include the time you’re are spending.  (Ex.: If you have added extra safety meetings, calculate the time individuals are spending on those meetings and include as a line item)
  • Keep these records in a contemporaneous manner. 

There are two reasons for taking these actions:

  1. If the government does offer relief, your information will be readily available with all the necessary, documented details
  2. As we move past this into a recovery phase, you may consider approaching a bank. If so, it will be helpful to have a complete understanding of the full range of expenses you incurred while running the business. When the bank reviews your financial statements, they will have a clearer, more concise and accurate understanding based on the information you have provided in that line item.  

Information for Nonprofits

The Center for Non-Profits is an excellent source for information regarding the impact of the coronavirus on the nonprofit community.  Click here for their blog. These are updated regularly and focus specifically on the effect for nonprofit organizations, their fundraising and friend raising initiatives, and the pressure to deliver critical community services in a time of crisis. Center for Non-Profits Going Forward: Best Practices and Considerations for Non-Profit Reopening

IRS Update for Additional Taxpayer Relief – Exempt Organizations

The IRS has issued an update, Notice 2020-23, to include Exempt Organizations in the definition of Taxpayers Affected by COVID-19 Emergency.

This means that the filing deadline for Exempt Organizations has been extended to July 15, 2020. The forms included are as follows:

  • Form 990 – Return of Exempt Organization
  • Form 990 EZ – Short Form Return of Exempt Organization
  • Form 990 T – Exempt Organization Business Income Tax Return
  • Form 990 PF – Private Foundations
  • Form 990-W for quarterly estimated payments

Exempt organizations who wish to file after the original due date of May 15, 2020 and before the extended date of July 15, 2020 do not need to take any action to extend their filing or payment to July 15, 2020.

Information Relating to Human Resources

  • NJ Department of Labor and Workforce Development -  Information about coronavirus and what employees and employers need to know.  
  • ADP -  This website specifically addresses many of the most critical Human Resource issues facing businesses today by providing practical suggestions that have evolved through interaction with local authorities and the World Health Organization. You can visit their website and check out their Business Resiliency Plan Fact Sheet.
  • Coronavirus - Update for Employer from Riker Danzig Labor & Employment Client Alert
  • COVID-19 Q&A: Employment Issues with Emergency Business Closures - By: Dennis J. Alessi and Steven I. Adler

  • Worker Adjustment & Retaining Notifications (WARN) Act - We can state that California has suspended requirements under their version of the WARN Act. As far as New Jersey is concerned, there is nothing to report but we would like to think that New Jersey will suspend the requirement since the pandemic was not a foreseen issue and business closures were mandated by the Governor’s executive order.  We suggest that you check with your legal counsel for further information.

  • NJMEP 2020 Return to Work & Recovery Guide

Webinar Recordings

We hope this section of our website is especially useful for you. Whether you attended one of our recent webinars and want to review the information at your leisure, or you missed the webinar, they will be archived here for your convenience.

COVID-19

Looking at Mergers and Acquisitions Through a Global Crisis Lens

PPP - What's Next?

New Jersey's Business Alternative Income Tax

Effective Events in a Virtual World

The Future is Now:  How to Plan for Remote Audit

All You Need to Know About the PPP Forgiveness Application

What Does the Revised PPP Loan Forgiveness Application Mean to Me?

Should I Come Back, Can I Come Back, How Do I Come Back?

Words Matter

PPP Update for The Nonprofit Community

PPP Loan Forgiveness Update

Cyber Security and Fraud Vulnerability During a Pandemic

Knowing Your Numbers

Dealing with the COVID-19 Crisis Strategically-Nonprofit Webinar

Continuing COVID-19 Challenges

Through the Eyes of the CFO

Facing the Unimaginable: Are You Insured for Business Disruption During a Pandemic?

It's All About People

Lots of Questions...Some Answers, Insights and Support

A Special Town Hall Meeting: Updates on the Constantly Changing Economic and Legislative Landscape

Lesson #1: The ABC's of PPP and SBA Loans

Nonprofit Questions and Answers in the Age of COVID-19

Coping with Crisis in the Workplace - An Interactive Conversation

 

Client Letters

Communication is key during a time of crisis. Therefore it is important for us to continue providing our clients with up-to-the-minute information, ideas, and resources that they can draw on to weather this storm.

We Are Here to Help

Frequently Asked Questions

As the situation around the coronavirus outbreak continues to escalate, we have had several questions posed to us. Each day we will select one or two of the most common queries and share them with you. In addition, you can email us directly at colleen.logan@sobelcollc.com and we will answer you as quickly as we can.

IRS answers questions on claiming economic impact payments 

The IRS has answered questions regarding economic impact payments including the time frame in which a taxpayer can claim the payment. Click here for the IRS Economic Impact Payment Information Center.

Am I required to pay my employees, if I voluntarily close my business or I am ultimately ordered by the government to do so? 

No; except for possible requirements under any employment agreements, and state mandated paid sick or other leave, as address below, you are not required to pay your employees whether you decide to voluntarily close your office or are ordered by the government. (Q&A provided by Mandelbaum Salsburg attorneys Dennis J. Alessi and Steven I. Adler in their article entitled, “Employment Issues with Emergency Business Closures” Note: this is generic information and is not to be construed as legal advice.

Directory of Phone Numbers, Hotlines & Websites

NJ COVID-19 hotline
1-800-222-1222. If using an out-of-state phone line, call 1-800-962-1253

NJ Economic Development Authority (NJEDA) 

Small Business Administration (SBA)  
Disaster Assistance customer service center: 1-800-659-2955 or email disastercustomerservice@sba.gov

Center for Disease Control and Prevention (CDC) 

NJ Department of Labor and Workforce Development (DOL) 

NJ State Chamber of Commerce  

Meadowlands Regional Chamber of Commerce 

NJ Business Action Center 

New Jersey Business and Industry Association (NJBIA) 

Commerce and Industry Association of NJ (CIANJ) 

NJ Small Business Development Centers (SBDC) 

Morris County Chamber of Commerce

Center for Non-Profits 

New Jersey Manufacturing Extension Program, Inc.  
email hotline: takeaction@njmep.org. Crisis Management / Business Continuity Planning   

Somerset County Business Partnership 

New Jersey Pandemic Relief Fund

South Jersey COVID-19 Response Fund from the Community Foundation of South Jersey

COVID-19 Rapid Response Fund from the Northern New Jersey Community Foundation for non-profit services and programs in Bergen County

Princeton Area Community Foundation COVID-19 Relief & Recovery Fund

OceanFirst Foundation Rapid Response Grants and Good Neighbor Grants, in addition to loosening restrictions of some previously awarded funding

PHL COVID-19 Fund from the United Way of Greater Philadelphia and Southern New Jersey

United Way of Greater Newark Community COVID-19 Fund is taking donations, funding application to be announced

 

Resources

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Blogs

IRS Issues Guidance on Deductibility of Expenses Incurred from PPP Proceeds
November 20, 2020
There has been great speculation on how to treat the expenses paid by a business that received Paycheck Protection Program (PPP) funds since the IRS...