May 25, 2020<\/p>\n\n\n\n

Hello Friends and\nFamily,<\/p>\n\n\n\n

Happy Memorial Day. On\nMemorial Day, 1955, Dwight D. Eisenhower issued a Proclamation of Prayer for\nPeace: \u201cWhereas in tribute to these silent dead it is fitting that we lift up\nour voices together in supplication to Almighty God for wisdom in our search for\nan enduring peace\u2026\u201d Certainly a fitting resolution given the current state of\nturmoil in which we find ourselves.<\/p>\n\n\n\n

Allow me a personal\nnote, I would like to thank my father, Col. George L. Sumrall, Jr (ret) and my\nmother for their 29 years of service to our country in the United States Army.\nMy father served in Vietnam and was abroad when I was born. And while not\nwearing a uniform, my mother served faithfully by his side. I am thankful to\nthem both for their dedication to this country, their calling and their family.<\/p>\n\n\n\n

And after a wonderful\nthree-day weekend, back to madness:<\/p>\n\n\n\n

Paycheck Protection\nProgram<\/strong><\/p>\n\n\n\n

FAQ Question 46<\/em><\/p>\n\n\n\n

The Small Business\nAdministration has been very busy over the past two weeks. Early last week the\nSBA updated its frequently asked questions highlighted by Question 46. Question\n46 establishes a safe harbor for small borrowers to rely on their loan\napplication good-faith certification that the loan was \u201cnecessary\u201d. If you will\nremember, originally the SBA requested all borrowers to re-think the concept of\nnecessary. The safe harbor established by Question 46 means that borrowers\nwhose loan proceeds are less than $2M will not be audited and may not subject\nto SBA review. Accordingly, by default, the borrow is deemed to have made\ngood-faith certification about the necessity of the loan.<\/p>\n\n\n\n

SBA Forgiveness Application<\/em><\/p>\n\n\n\n

On March 15, the SBA\nissued its first draft of the PPP loan forgiveness application. The 11-page\ndocument includes several schedules along with explanations and some definition\nof terms. There are several items of note:<\/p>\n\n\n\n

• The formula used to calculate\nthe amount of loan for \u201chighly compensated\u201d employees, capping the salary for\nthese employees at $100,000 is now different than the formula used to request\nforgiveness for these employees. The difference is roughly $1,300 per employee.\nThis means that if you spend the same amount of salary capped at $100K, your\nforgiveness will be $1,300 less than the loan amount for those same employees.<\/li>
• The definition of a full-time\nemployee for loan forgives purposes is 40 hours per week. Precedent was set\nwith the passage of the Affordable Care Act that a full-time equivalent was\nanyone who worked 30 hours per week.<\/li>
• The loan forgiveness \u201ccovered\nperiod\u201d now includes a choice of an \u201cAlternative Payroll Covered Period.\u201d In\ngeneral, the alternative period begins the first day of the pay period\nfollowing the disbursement of the loan proceeds.<\/li>
• The loan application includes a\nparagraph addressing FTE Reduction Exceptions \u2013 \u201cIndicate the FTE of (1) any\npositions for which the borrower made a good-faith, written offer to rehire an\nemployee\u2026\u201d Presumably this is the SBA attempt to address situations where\nemployees are able to return to work but refuse because they are making more on\nunemployment that through their regular job (In part thanks to the extra $600\nweekly added to unemployment compensation by the feds).<\/li><\/ul>\n\n\n\n

  AICPA PPP Forgiveness Spreadsheet<\/em><\/p>\n\n\n\n

  On March 21, the\nAmerican Institute of Certified Public Accountants (AICPA) released its\n(subject to change) version of the PPP loan application forgives spreadsheet.\nWhile I have not always enjoyed my relationship with the AICPA, their\nCorona-virus Resource Center has been outstanding. You can download the\nspreadsheet from our website: https:\/\/badgersumrall.com\/covid-19-tax-questions\/<\/a><\/p>\n\n\n\n

  Stimulus Checks<\/strong><\/p>\n\n\n\n

  Or at least we thought so.\nMany of you have received direct deposit or checks of stimulus funds in recent\nweeks. Congratulations! You will all share in my rejoicing when my IRS issued\ndebit card arrived in the mail. I have no idea how the IRS calculated the\namount of my stimulus. It did not match what I was expecting based on my 2018\ntax return. Oh well!<\/p>\n\n\n\n

  If you receive a debit\ncard, you may spend like any other debit card. You may also withdraw funds from\nATM machines without fees if the ATM is \u201cin-network\u201d. In-network means an ATM\non the AllPoint Brand ATMs. You may also withdraw funds from a bank teller\nwithout fee for the first transaction. If you use a teller more than once, it\nwill cost you $5 per transaction.<\/p>\n\n\n\n

  More Relief<\/strong><\/p>\n\n\n\n

  We all watched the,\ndead-on arrival, $3 trillion House bill as it was passed and sent to the\nSenate. Rumor is there will be more relief. Rumblings are that the Senate is\nconsidering a small bill that will, among other things, extend the 8-week PPP\nspending period. We will wait and see.<\/p>\n\n\n\n

  Stay safe and healthy.\nWe are all in this together.<\/p>\n\n\n\n

  Shawn G. Sumrall,\nPrincipal<\/p>\n\n\n\n

  Badger, Sumrall &\nCo., CPAs, pc<\/p>\n\n\n\n

  (540) 364-4930<\/p>\n\n\n\n

  www.badgersumrall.com<\/a><\/p>\n\n\n\n

  Guiding those we\nencounter to success<\/em>.<\/p>\n\n\n\n

  Book an appointment now<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

  May 25, 2020 Hello Friends and Family, Happy Memorial […]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"footnotes":""},"categories":[1],"tags":[],"acf":[],"yoast_head":"\n