News & Events

KRS Insights Webinar: COVID-19 Relief and Payroll Protection Program Updates

Join our Tuesday, December 1, 2020, 11:00 AM webinar and find out what's going on with the PPP program.

If you are a business owner and a PPP participant, you likely have many questions as the program draws to an end. In this webinar, the KRS CPAs team will provide insights on PPP updates, the loan forgiveness application process, income tax impacts, and future implications.

Reminder: No RMDS This Year

The Coronavirus Aid, Relief and Economic Security (CARES) Act enacted to provide relief in response to the coronavirus (COVID-19) pandemic includes a provision to waive Required Minimum Distributions (RMDs) during 2020 for individual retirement accounts (IRAs) and retirement plans, including for beneficiaries with inherited accounts.

New Jersey Pass-Through Entities Can Now Pay Income Tax

The Pass-Through Business Alternative Income Tax Act (BAIT) allows pass-through businesses to pay income taxes at the entity level instead of the personal level. Most pass-through entities are owned by an individual or group of individuals. Income from that entity flows through to the owners and the owners pay tax on the income.

Enacting this legislation allows New Jersey taxpayers a way to work around the $10,000 limitation by allowing pass-through entities to pay income tax instead of the individual.

Governor Murphy Signs COVID-19 Workplace Safety Executive Order

Governor Phil Murphy signed Executive Order No. 192, which mandates workplace health and safety standards during the COVID-19 pandemic.

The executive order, which goes into effect on November 5th at 6am, will require all New Jersey employers in both the private and public sector (including non-profits and governmental/educational entities) to follow all health and safety protocols outlined in the executive order.

Employer Voting Requirements in NJ and NY

Although some employees may choose to vote by mail during the COVID-19 pandemic, others will want to cast their ballots in person. They may have the right to take time off from work to do so depending on state law.

SBA Releases New PPP Loan Forgiveness Form for Loans $50K or Less

The U.S. Small Business Administration has released SBA Form 3508S, a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less.

The new form allows borrowers to self-certify they used the money appropriately and receive complete forgiveness.

Disaster Relief Payments: A Simple Way To Help Employees

When the COVID-19 pandemic was declared a national emergency earlier this year, it triggered Section 139 of the Internal Revenue Code.

Under Section 139, employers can provide tax-free payments or reimbursements to employees for certain expenses associated with a qualified disaster — such as the COVID-19 crisis.

KRS CPAs Receives NJBIA 2020 Award for Excellence

We are excited to announce we have been honored with the New Jersey Business and Industry Association’s 2020 Awards for Excellence.

This year’s NJBIA awards acknowledge four executives and 16 companies who have improved the quality of life in New Jersey in outstanding ways. We are one of four Outstanding Employers being honored for creative and forward-looking approaches to HR management.

IRS Updates Form 941 To Reflect COVID-19 Tax Credits

The IRS has revised Form 941, Employer's Quarterly Federal Tax Return, to accommodate COVID-19-related employment tax credits granted under the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security Act (CARES).

This article explains which tax credits are allowed under FFCRA and CARES, the changes made to Form 941, and how to use it to claim credits.

Tax Scams: The Pandemic Edition

The IRS has published its annual list of "dirty dozen" tax scams.

They publish this list every year, but 2020 is special, as the scammers have managed to turn the pandemic to their advantage.

Meet Our Newest Team Member: Roanne Isip

On September 8, Roanne Isip joined the KRS Team as our new Receptionist/Administrative Assistant. Daily, she helps manage the flow of the office anywhere from phone calls and mail to assisting her colleagues with anything they may need.

Updated Coronavirus-Related Child Care Leave Guidance

The Department of Labor (DOL) issued new questions and answers related to new school schedules and paid leave under the Families First Coronavirus Response Act (FFCRA).

Additionally, the DOL released a letter on expanded unemployment eligibility under the Pandemic Unemployment Assistance provisions.

How Workers Can Return

With the pandemic being a national emergency that involves an infectious disease, you must take precautions when recalling your employees to the work site.

This article offers four suggestions to utilize in your return-to-the-office plans, including ideas for establishing workplace safety protocols.

IRS Guidance on Payroll Tax Deferment Presidential Order

According to IRS Notice 2020-65, the employee Social Security tax deferral may apply to payments of taxable wages to an employee that are less than $4,000 during a bi-weekly pay period, with each pay period considered separately. No deferral is available for any payment to an employee of taxable wages of $4,000 or above for a bi-weekly pay period.

Our CPAs do not recommend utilizing this tax deferral at this time. This article is meant to apprise our clients of this optional program. If you are considering this tax deferral, you should contact your accountant immediately to discuss the possible issues that could arise.

CARES Act Suspension of Required Minimum Distributions

The CARES Act temporarily suspended required minimum distributions (RMDs) for retirement plans. If you already withdrew the required amount, you have until this Monday, August 31, to return the funds to the original account from which they were withdrawn.

Returning the funds will reduce your taxable income for 2020 and may allow for tax planning opportunities such as ROTH conversions.

Small Business Lease-Emergency Assistance Grant Program Opens Monday

Small businesses in a few dozen New Jersey towns can apply to receive up to $10,000 in federal funding to help pay their rent under the new Small Business Lease-Emergency Assistance Grant Program.

The program will be managed by the New Jersey Redevelopment Authority and will disburse $6 million in federal CARES Act funding to small businesses that qualify in 64 of the Garden State’s 565 municipalities. This is a grant and not a loan, meaning those who receive it won’t have to repay it or apply for any kind of forgiveness.

Tax Credits on Their Way Out

Legislation in 2019 — the Taxpayer Certainty and Disaster Tax Relief Act — resurrected or extended several income tax breaks. But Congress giveth and taketh away, and several of them will expire at the end of 2020. Among those scheduled to end: the deduction for qualified tuition and related expenses, medical expenses deductions, and the credit for energy-efficient home improvements.

Learn about the other deductions due to expire in this informative article.

Rethinking the Way We Communicate

Has the pandemic inspired you to explore new ways to engage with customers, co-workers and clients?

Using texts, webcasts and social media can help businesses and enable individuals to stay in touch, answer customers' questions, communicate business status, build trust, and demonstrate team value.

KRS CPAs Named Among the Best & Brightest Companies to Work for in the Nation for the Third Year.

KRS is extremely proud to be recognized among the 2020 Best and Brightest in the Nation for our dedication to building a great culture for our employees!

Congratulations to Janice Silberstein on Her Retirement!

Janice Silberstein has retired after almost 30 years as a CPA. Janice has been a key member of KRS CPAs since the firm’s inception in 2005. She has been an integral part of the firm’s growth and success.

KRS Closed 7/3 in Observance of Independence Day

KRS will be closed on Friday, July 3, in observance of Independence Day. We will resume normal business hours on Monday, July 6.

Senate passes bill to extend PPP Loan Application Deadline to August 8th

The Senate passed a five-week extension of the Paycheck Protection Program (PPP) yesterday only hours before the application deadline.

The extension is intended to provide more time for small businesses to apply for the approximately $129 billion in PPP funding remaining. The measure will have to pass in the House and be signed by President Trump before the new deadline of August 8th would take effect.

IRS Update on Required Minimum Distributions

The CARES Act enabled any taxpayer with required minimum distributions (RMD) due in 2020 from a retirement plan to forgo the RMD this year. This included 401(k), 403(b), and IRA plans.

The IRS released Notice 2020-51, which states that anyone who already took an RMD in 2020 from certain retirement accounts now has the opportunity to roll those funds back into a retirement account.

SBA Issues Interim Final Rule on Owner Compensation

The Small Business Administration (SBA) has issued a new interim final rule for determining payroll costs and owner compensation in calculating Paycheck Protection Program (PPP) loan forgiveness under the new 24-week covered period.

SBA Releases EZ PPP Loan Forgiveness Application

The Small Business Administration (SBA) has released a three-page “EZ” Paycheck Protection Program loan forgiveness application.  The EZ Loan Forgiveness Application is meant to reduce the burden on smaller businesses and borrowers by requiring fewer calculations and less documentation.

The new application is part of the SBA’s efforts to comply with the Paycheck Protection Flexibility Act (PPPFA), which became law on June 5, 2020.

NJEDA Emergency Grant Program Phase 2 Opens June 9

Applications for the NJEDA’s Small Business Emergency Assistance Grant Program Phase 2 open on Tuesday June 9, 9am. Phase 2, with $45 million available, offers larger grants (up to $10,000) and expanded eligibility to New Jersey’s small businesses, home-based businesses, sole proprietorships, and 501(c)(3), 501(c)(4), and 501(c)(7) nonprofit organizations.

Paycheck Protection Flexibility Act Passes in Senate

The Senate passed the House’s version of the Paycheck Protection Flexibility Act. The bill now goes to President Donald Trump, who is expected to sign it.

Among the chief provisions: current PPP borrowers can choose to extend the eight-week period to 24 weeks, or they may keep the original eight-week period. In addition, the payroll expenditure requirement has been reduced from 75 percent to 60 percent of the loan.

Changes Coming to PPP

Both the House and Senate are working to make changes to the Paycheck Protection Program (PPP).

Last night, the House passed the Paycheck Protection Program Flexibility Act. The act makes several key changes to the PPP, among them increasing the timeline to use funds from eight weeks to 24 weeks.

More Guidance on PPP Loans and Forgiveness Released

The Treasury and U.S. Small Business Administration (SBA) issued additional guidance on the conditions for PPP loan forgiveness as well as loan review procedures, and borrower and lender responsibilities.

SBA Issues PPP Loan Forgiveness Instructions and Application

The U.S. Small Business Administration (SBA) released new guidance for Paycheck Protection Program (PPP) loan forgiveness.

SBA Deems PPP Loans under $2M Meet Good-Faith Certification

The SBA has determined that borrowers with loans below the $2 million threshold are less likely to have had access to adequate sources of liquidity than borrowers that received larger loans at this time.

Borrowers with loans greater than $2 million that do not satisfy this safe harbor may still have an adequate basis to meet the required good-faith certification. If the SBA determines that a borrower lacked an adequate basis, the borrower will be required to repay the outstanding PPP loan balance and the lender will be informed that the loan is not eligible forgiveness.

New Jersey Expands FLA with COVID-19 Protections

New law expands the NJ Family Leave Act and provides employees forced to take time off to care for a family member during the COVID-19 outbreak with up to 12 weeks of unpaid family leave in a 24-month period without losing their jobs.

SBA Extends PPP Repayment to May 14

A few weeks ago, the SBA announced that borrowers should be prepared to demonstrate the basis for good faith certification in requesting a loan from the Paycheck Protection Program (PPP).Any borrower who applied for a PPP loan prior to the issuance of this guidance and repays the loan in full will be deemed by SBA to have made the required certification in good faith.

The SBA has extended the repayment deadline to May 14, 2020 for borrowers who requested a loan in the first round of funding.

PPP Loan Forgiveness Not Reduced By Rejected Rehire Offers

If an employer offers to rehire an employee and the offer is declined, it will not have a negative effect on the Full Time Equivalent (FTE) reduction calculation for PPP loan forgiveness. Some rules, however, apply.

Families First Coronavirus Response Act (FFCRA) Update

Among the latest updates to the FFCRA: After a grace period, the DOL has officially ramped up its enforcement efforts but encourages employers and employees use their educational online tools to avoid violations. Additional guidance provided for small business exemptions, self-quarantine, and a timeline for paid sick leave.

SBA Issues More Regulations for PPP

The U.S. Small Business Administration (SBA) issued more regulations for the Paycheck Protection Program (PPP).

The new regulations relate specifically to loan disbursement and corporate group eligibility.

New Guidance and Infusion to the PPP

The Paycheck Protection Program and Health Care Enhancement bill passed last week gave a $310 billion replenishment to the PPP after all funds were depleted after less than two weeks.

The U.S. Small Business Administration (SBA) issued another round of regulations on the program shortly before it resumed accepting applications from participating lenders on Monday.

Economic Impact Payments Update

The government has begun to process Economic Impact Payments. The payments are automatic for most taxpayers. The IRS has created a portal that allows recipients to check payment status, confirm payment type (direct deposit or check), enter bank account information to receive direct deposit, and update a mailing address.

NJEDA Small Business Emergency Assistance Loan

The New Jersey Economic Development Authority (NJEDA) has created a Small Business Emergency Loan Program to assist with the continued economic impact of COVID-19. This $10 million program will provide working no-to-low interest capital loans of up to $100,000 to businesses with less than $5 million in revenues.

Changes to Paycheck Protection Program

The U.S. Small Business Administration (SBA) has issued interim regulations under the Paycheck Protection Program (PPP). These regulations have changed aspects of the program for independent contractors, includable and excludable payroll costs, and more.

Applications Open Tomorrow for NJEDA’s Grant Program

The application process for the NJEDA's Small Business Emergency Assistance Grant Program opens tomorrow, Friday, April 3, at 9am.

Paycheck Protection Program

The latest coronavirus relief fund established new loans to help employers pay workers and cover other employment-related expenses during the coronavirus crisis.

Lenders can start processing loan applications for small businesses and sole proprietors on April 3, 2020 and independent contractors and self-employed workers on April 10, 2020.

DOL Guidance on Families First Coronavirus Response Act

The Department of Labor recently issued additional regulations and guidance regarding the Emergency Family and Medical Leave Expansion Act (EFMLEA) portion of the legislation. This guidance covered small business exemptions, office closures, intermittent leave, furloughs or reduced hours, and documentation.

CARES Act – Benefits for Individuals

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a $2 trillion economic relief plan, which includes direct payments to many Americans, expanded unemployment benefits, and additional benefits for individuals and families during these difficult times.

CARES Act – Small Business Update

The newly enacted CARES Act provides for forgivable small business loans. This article shares details about loan amounts, loan forgiveness, and then shares additional resources where small business owners can go for additional guidance.