We will be closed the Week starting Labor Day

Our office will be closed September 7th. - 11th. 2020

Taking advantage of the slow office activity due to the COVID-19 pandemic, we will be performing maintenance and upgrades to our systems during the Labor Day week starting Monday September 7th to the Friday 11th.

Please consider requesting your payroll checks and any other information or documentation from your representative before these dates. We will be reopening on Monday September 14th. 2020. Thank you for your consideration.

Nuestra oficina estara cerrada del 7 al 11 de Septiembre, 2020

Aprovechando la baja actividad en nuestra oficina debido a la pandemia del COVID-19, estaremos haciendo mantenimiento y actualizaciones a nuestros sistemas durante la semana de Labor Day del 7 al 11 de Septiembre , 2020.

Le solicitamos a nuestros clientes ordenar sus cheques de payroll o pedir cualquier informacion o documentacion con el representante de su cuenta antes de estas fechas. Reabriremos el dia Lunes 14 de Septiembre 2020. Gracias por su comprension.

Basic Information PPP & EIDL Loan Forgiveness

PAYCHECK PROTECTION PROGRAM LOAN (PPP)

Interest: 1%

Repayment Period: 2 Years for Loans approved before 06/05/2020

Repayment Period: 5 Years for Loans approved after 06/05/2020

No payment/Forgiveness: Until forgiveness application is processed or 10 months after covered period ends.

USE OF FUNDS

  • At least 60% of Loan must be used for Payroll (Non-payroll Up to 40%)
  • Payments to Independent Contractors
  • Mortgage Interest Only
  • Rent/Lease Expenses
  • Utilities (Includes Transportation)

COLLATERAL: None

FORGIVEN AMOUNT INCLUDES: (Becomes tax exempt grant) Use Form 3508 or 3508EZ

  • Expenses for the 24 weeks starting from loan funding date
  • Payroll including bonuses, except pre-paid payroll beyond the 24 weeks
  • Owner’s payroll is limited to 20.83% of 2019 compensation or $20,833
  • Employee’s payroll is limited to 46.15% of 2019 compensation or $46,154


ECONOMIC INJURY DISASTER LOAN (EIDL)

Interest: 3.75%

Period: 30 Years

No Payment/No interest Period: 1 year

USE OF FUNDS

  • Working Capital
  • Purchase only American made Equipment (if possible)

DO NOT USE FOR

  1. Payment of any dividends or bonuses
  2. Disbursements to owners, partners, officers, directors, or stockholders, except when directly related to performance of services for the benefit of the applicant;
  3. Repayment of stockholder/principal loans, except when the funds were injected on an interim basis as a result of the disaster and non-repayment would cause undue hardship to the stockholder/principal;
  4. Expansion of facilities or acquisition of fixed assets;
  5. Repair or replacement of physical damages;
  6. Refinancing long term debt;
  7. Paying down (including regular installment payments) or paying off loans provided, or owned by another Federal agency (including SBA) or a Small Business Investment Company licensed under the Small Business Investment Act. Federal Deposit Insurance Corporation (FDIC) is not considered a Federal agency for this purpose;
  8. Payment of any part of a direct Federal debt, (including SBA loans) except IRS obligations. (Additional requirements regarding the payment of federal debt start on page 75 of the SOP.)
  9. Pay any penalty resulting from noncompliance with a law, regulation or order of a Federal, state, regional, or local agency.
  10. Contractor malfeasance; and
  11. Relocation or Expansion

COLLATERAL

  • Property Owned
  • Property Acquired with funds
  • Inventory
  • Accounts Receivable
  • Legal instruments including Promissory Notes
  • Deposit Accounts

CONDITIONS

  • Borrower will not voluntarily relocate without prior written permission from SBA
  • Will keep receipts, invoices, contracts, cancelled checks for at least 3 years
  • Provide Proof of Insurance within 12 months
  • Keep proper books for the most recent 5 years
  • Record of dividends or distributions to owners with 10% or more of ownership
  • Misuse of loan will be liable for 150% of loan amount.

 

Is my business considered an essential business for COVID-19?

If you’re wondering which business is considered essential for COVID-19 purposes, the State of Maryland has issued a list of the different business categories.

As a consequence, it also relates to employees that are considered essential for that purpose.

Below you can find the list of Essential Business issued by the State of Maryland and a sample letter that you can give to your employees, in case they are stopped by authorities.

Prestamos de Emergencia para Negocios afectados por COVID-19

El gobierno federal y algunos estados han implementado préstamos de emergencia y alivio de desastres para pequeñas empresas. Si su negocio se ha visto afectado por la pandemia de COVID-19, encuentre información importante a continuación:

Los solicitantes también pueden llamar al Centro de Servicio al Cliente de la SBA al (800) 659-2955 o enviar un correo electrónico a disastercustomerservice@sba.gov  para obtener más información sobre la asistencia por desastre de la SBA.

Recursos por Estado

Requisitos para el Estado de Maryland

Este Fondo de Préstamo de $ 75 millones para ayuda de emergencia de COVID-19 ofrece capital de trabajo para ayudar a las pequeñas empresas con fines de lucro de Maryland que interrumpieron las operaciones debido a COVID-19. La asistencia crediticia está destinada a proporcionar medidas provisionales de ayuda complementaria con su banco, seguro de interrupción de negocios y socios financieros.

TÉRMINOS GENERALES Y CONDICIONES

El negocio debe demostrar estrés financiero u operaciones interrumpidas, que pueden incluir, entre otras:

Emergency Relief Loans for Small Business

The Federal Government and some States have implemented Emergency and Disaster Relief Loans for Small Business. If your business has become affected by the COVID-19 pandemic, please find important information below:

Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance.

Resources by State

Requirements for State of Maryland

This COVID-19 Emergency Relief $75M Loan Fund offers working capital to assist Maryland for-profit small businesses disrupted operations due to COVID-19. Loan assistance is intended to provide interim relief complementing actions with its bank, business interruption insurance, and financial partners.

GENERAL TERMS AND CONDITIONS

  • Loans up to $50,000 (not to exceed three months of cash operating expenses) open to Maryland businesses impacted by the COVID-19 with fewer than 50 employees.
  • 0% for the first 12 months, and 2% for the remaining 36 months.
  • Deferral of any payments for the first 12 months, and straight amortization beginning in the 13th month through the 36th month.
  • Business must be established prior to March 9, 2020 and in good standing.
  • Two years of historical financial statements and most recent interim statement to benchmark revenue against (if available).
  • Six month pro forma of estimated lost revenue or other documented loss evidence.
  • Minimum personal credit score of 575.
  • No collateral requirements.
  • Eligible uses include: working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses that occur in the ordinary course of operations.
 
The business must demonstrate financial stress or disrupted operations, which may include but are not limited to:
  • Notices from tenants closing operations and not paying rent caused by loss of income.
  • Notice of inability to pay rent or make loan payments due to reduced sales, suspended operations.
  • Increased cost related to COVID-19 prevention measures.
  • Notice of disrupted supply network leading to shortage of critical inventory or materials.
  • Other circumstances subject to review on a case by case basis.

Prepare To Provide Paid Sick Leave And FMLA

The president signed into legislation the Emergency Family and Medical Leave Act (FMLA) on March 18, 2020. These temporary leave provisions will go into effect on April 2 until December 31, 2020.

The new temporary legislation expanded the inclusion of more employers. This requirement used to include only employers with 50 or more employees, but now the wording has changed to employers with fewer than 500 employees.

In general, a full-time employee is entitled to 80 hours of paid sick time and part-time employees are entitled to the typical number of hours they are scheduled to work in a two-week period. Now, the wording has changed to “any individual employed by the employer may take up to 12 weeks of job-protected leave to allow an employee, who is unable to work or telework, to care for the employee’s child (under 18 years of age) if the child’s school or place of care is closed or the childcare provider is unavailable due to a public health emergency.

Who qualifies? Any individual employed by the employer for at least 30 days (It used to be 1 year) and the Act now allows an eligible employee to take paid sick leave because the employee is:

1. subject to a federal, state or local quarantine or isolation order related to COVID-19;
2. advised by a health care provider to self-quarantine due to COVID-19 concerns;
3. experiencing COVID-19 symptoms and seeking medical diagnosis;
4. caring for an individual subject to a federal, state or local quarantine or isolation order or advised by a health care provider to self-quarantine due to COVID-19 concerns;
5. caring for the employee’s child if the child’s school or place of care is closed or the child’s care provider is unavailable due to public health emergency; or
6. experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretary of the Treasury and the Secretary of Labor.

Although the Act allows up to 12 weeks of leave, the first segment of emergency FMLA leave (2 weeks = 10 days) can be unpaid (it used to be 14 days). An employee can opt to substitute accrued vacation, personal, or sick leave during this time, but an employer may not require an employee to do so.

The remaining 10 weeks of FMLA leave is required to be paid, either at 100% of the regular hourly rate or at no less than two-thirds (60%) of the employee’s regular rate, for the number of hours the employee would otherwise be scheduled to work. The bill limits an employer’s requirement of paid leave to $511 per day ($5,110 in the aggregate = Top) where leave is taken for reasons (1), (2), and (3) noted above (generally, an employee’s own illness or quarantine); and $200 per day ($2,000 in the aggregate = Top) where leave is taken for reasons (4), (5), or (6) (care for others or school closures).

Job Restoration: Employers with 25 or more employees will have the same obligation as under traditional FMLA to return any employee who has taken Emergency FMLA to the same or equivalent position upon the return to work. However, employers with fewer than 25 employees are generally excluded from this requirement if the employee’s position no longer exists following the Emergency FMLA leave due to an economic downtown or other circumstances caused by a public health emergency during the period of Emergency FMLA. This exclusion is subject to the employer making reasonable attempts to return the employee to an equivalent position and requires an employer to make efforts to return the employee to work for up to a year following the employee’s leave.

Legal Aspects: The bill includes a prohibition on retaliating against any employee who takes leave in accordance with the new law. The bill further provides that the failure to pay required sick leave will be treated as a failure to pay minimum wages in violation of the Fair Labor Standards Act.

Further, the bill excludes from civil FMLA damages in an employee-initiated lawsuit against employers that do not employ 50 or more employees for each working day during each of 20 or more calendar workweeks in the current or preceding calendar year.

Tax Credits: The good news it that employers who are required to provide the Emergency Paid Sick Leave and Emergency Paid Family and Medical Leave will be reimbursed by the government or have tax credits allowed against the employer portion of Social Security taxes. Specifically, employers are entitled to a refundable tax credit equal to 100% of the qualified sick leave wages paid by employers for each calendar quarter in adherence with the Emergency Paid Sick Leave Act. The qualified sick leave wages are capped at $511 per day ($200 per day if the leave is for caring for a family member or child) for up to 10 days per employee in each calendar quarter.

Covid-19 Announcement Closure Information

March 21, 2020

In regards to the COVID-19 pandemic, please be advised that we adhere to all instructions issued by Federal and State authorities and would like to notify our clients of the following information:

1. Customer Service Hours:

As many of you know, the federal government has asked everyone to stay at home and avoid groups of 10 or more people. While the Maryland Governor Larry Hogan asked to avoid groups of 50 people or more. He also asked that businesses must be closed, in prevention of spreading the virus and announced penalties of $ 5,000 or 1 year in jail or both, for businesses that open and violate this provision.

This was especially directed to restaurants, bars, theaters and the like, but does not limit the opening of other types of businesses. Therefore, we will open our office starting on Monday March 23rd. during normal business hours. However, this could change, based on news or instructions issued by the health authorities, reserving the right to limit the number of people who can be served, in a certain moment.

2. Deadline to file taxes:

As good news, the Federal Government has extended the deadline for paying your personal taxes from April 15, to July 15, 2020. No need to file any form for this automatic extension, so  don’t worry if April 15 passes.

3. Economic Consequences:

COVID-19 has greatly affected the national economy, causing a lot of anxiety and instability on people. The stock market fell in historical figures and people prefer to save their money in fear of an unknown future. For the same reason, many of our clients have also been affected, and some of their jobs or contracts that were about to begin, have been canceled. Therefore, if you have experienced a radical loss in activities, we will make adjustments or discounts in our fees, according to the documentation and the situation of each client. If your business experiences a substantial downturn, a service plan change may also be suggested.

4. Checks for economic incentives from the Government:

The Federal Government will send economic incentives to the families that qualify, and would be distributed as follows:

Individuals earning less than $ 75,000 will receive $ 1,200
Couples earning less than $ 150,000 will receive $ 2,400

Unfortunately, this stimulus is aimed at individuals who have a valid social security number and does not apply to people with ITIN.

5. Unemployment resources:

Remember, if you are not working or if you see yourself in a situation that requires you to fire an employee, you qualify to apply for assistance from the unemployment office, no matter if you own the business. This assumes you’re being paid with payroll tax deductions and the application can be done online on the following links

Maryland | Virginia | District of Columbia

Thank you for understanding, we trust that the actions taken by the health authorities will eradicate this pandemic, we also hope that the situation improves and in a couple of months all this will be just a bad memory.

Jose A. Burgos, CPB, EA

Informacion sobre el Covid-19 para nuestros clientes

March 21, 2020

En relación a la pandemia del COVID-19, nos apegamos a las instrucciones emitidas por las autoridades federales y estatales y le notificamos a nuestros clientes la siguiente información:

  1. Horario de Atención al Cliente:

    Como muchos saben, el gobierno federal ha pedido quedarse en casa y evitar grupos de 10 personas o má Mientras que el Gobernador de Maryland, Larry Hogan, pidió evitar grupos de 50 personas o más, asimismo pidio que los negocios se mantengan cerrados, anunciando sanciones de $5,000 o 1 año de carcel o ambas, para los negocios que abran e incumplan esta disposición. Esto fue dirigido especialmente a restaurantes, bares, cines y similares, pero no limita la apertura de otros tipos de negocio. Nosotros abriremos nuestra oficina a partir de este Lunes 23 de Marzo en horario normal, pero esto podría cambiar basado en las instrucciones que dicten las autoridades de salud, reservandonos el derecho de limitar el numero de personas a las que se les pueda atender, en un determinado momento.

  2. Fecha límite para presentar impuestos:

    Como buena noticia, el Gobierno Federal extendió la fecha limite para la presentación de impuestos personales del 15 de Abril, hasta el 15 de Julio del 2020. No hay necesidad de archivar ninguna forma para esta extension automatica, asi que no se preocupe si se pasa el 15 de Abril.

  3. Consecuencias Económicas:

    El COVID-19 ha afectado grandemente la economía nacional, causando mucha ansiedad e inestabilidad en la gente. La bolsa de valores bajó en cifras historicas y la gente prefiere ahorrar y no gastar, por temor a un futuro desconocido. Por lo mismo, muchos de nuestros clientes tambien se han visto afectados y les han cancelado trabajos o contratos que ya estaban por comenzar. Por consiguiente, si ha experimentado una baja radical en sus actividades, nosotros haremos ajustes o descuentos en nuestros fees, de acuerdo a la documentación y a la situación de cada cliente. Si su negocio experimenta una baja substancial, tambien podria sugerírsele un cambio de plan de servicio.

  4. Cheques por estímulos económicos del Gobierno:

    El Gobierno Federal hará el envio de estímulos económicos a las familias que califiquen y serían distribuidos de la siguiente manera:

    Individuos que ganen menos de $75,000 recibiran $1,200
    Matrimonios que ganen menos de $150,000 recibiran $2,400

    Desafortunadamente este estimulo esta dirigido para personas o familias que tengan un número de seguro social válido y no aplica a personas con ITIN.

  5. Recursos de desempleo:

    Recuerde, si usted no está trabajando o si se ve en la necesidad de despedir a alguno de sus empleados y se estan pagando con payroll, ustedes califican para obtener ayuda de la oficina del desempleo, no importa que sea el dueño del negocio. La aplicación puede hacerse online en los siguientes enlaces

    Maryland  | Virginia | District of Columbia

Gracias por su comprensión, confiamos en que las acciones tomadas por las autoridades de salud erradiquen esta pandemia, esperamos que la situación mejore pronto y en un par de meses todo sea solo un mal recuerdo.

Jose A. Burgos, CPB, EA

Our office is offering limited services due to Covid-19. We accept appointments for business registration and accounting services, but require the use of face masks and temperature checking upon arrival. We apologize for the inconvenience. Thank you.

We are offering limited services to the public due to COVID-19. If you need to do your taxes, you can stop by and drop off your documents or upload them by selecting income taxes from our Services menu. Once your taxes are done, you can stop by to pick up your copy or get an electronic copy via email.

Make a tax payment now, avoid a tax-time surprise

Taxpayers who paid too little tax during 2019 can still avoid a tax-time surprise by making a quarterly estimated tax payment now, directly to the Internal Revenue Service. The deadline for making a payment for the fourth quarter of 2019 is Wednesday, January 15, 2020.

If you or your accountant failed to plan for tax time, you can still lower your tax bill or avoid it altogether by taking some actions before December 31. If you own a business, buying vehicles, equipment, increasing your paycheck tax deductions or even putting some money on a retirement account can make a huge difference, so you can keep more of your money in your pocket. At ACR we specialize in accounting, payroll and tax planning. We concentrate on your business, we take care of  tax headaches. Make an appointment today.

Who Must Pay Estimated Tax
Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed.

Corporations generally have to make estimated tax payments if they expect to owe tax of $500 or more when their return is filed.

How To Figure Estimated Tax
Individuals, including sole proprietors, partners, and S corporation shareholders, generally use Form 1040-ES (PDF), to figure estimated tax. Corporations generally use Form 1120-W (PDF), to figure estimated tax.

To figure your estimated tax, you must figure your expected adjusted gross income, taxable income, taxes, deductions, and credits for the year.

Penalty for Underpayment of Estimated Tax
If you didn’t pay enough tax throughout the year, either through withholding or by making estimated tax payments, you may have to pay a penalty for underpayment of estimated tax. Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholding and credits, or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller. There are special rules for farmers and fishermen. Please refer to Publication 505, Tax Withholding and Estimated Tax, for additional information.