September 04, 2020 Alison M. Kryzer

IRS Issues Guidance On Employees’ Social Security Tax Deferral

On August 28, 2020, the IRS issued Notice 2020-65.  Effective September 1, 2020 employers are permitted to suspend withholding and paying to the IRS eligible employees’ Social Security payroll taxes. The payroll tax suspension period runs from September 1, 2020 through December 31, 2020 and only applies to employees whose wages are less than $4,000 for a biweekly pay period and to salaried workers earning less than $104,000 per year. Employers would then collect additional amounts from workers’ paychecks from More +

June 22, 2020 Dunlap Seeger

UPDATE: Guidance Issued on Minnesota Small Business Relief Grants Program

The Minnesota Department of Employment and Economic Development (DEED) has posted guidance about the recently-created Minnesota Small Business Relief Grants Program. The program establishes a lottery for $10,000 grants for small businesses that can demonstrate financial hardship as a result of COVID-19. Our general overview is found here. The online application will only be available from Tuesday, June 23, 2020, through Thursday, July 2, 2020, at 5:00 pm. After the application window ends, DEED will pair with the Minnesota Lottery and an independent, third-party More +

June 17, 2020 Dunlap Seeger

Paycheck Protection Program: New Interim Final Rules and Forgiveness Applications

The SBA and Treasury have released new Paycheck Protection Program guidance and forgiveness applications. This new material addresses changes brought by the Paycheck Protection Program Flexibility Act, including those to PPP loan maturity, deferral, and forgiveness. Interim Final Rule on Revisions to First Interim Final Rule clarifies that spending 60 percent of PPP proceeds on payroll costs is not a cliff requirement. Put differently, if a borrower spends only 59 percent of PPP proceeds on payroll costs, the borrower will receive More +

June 17, 2020 Dunlap Seeger

Minnesota Small Business Relief Grants

We are also monitoring Minnesota House File 5, which approves approximately $62 million for grants to small businesses. Half of this amount will go to businesses outside the metro area. A business will be eligible if it is owned by a permanent resident of Minnesota, is located in Minnesota, employs 50 full-time workers or less, is in good standing with the secretary of state and department of revenue, and can demonstrate financial hardship as a result of COVID-19. Eligible businesses may More +

June 08, 2020 Dunlap Seeger

Paycheck Protection Program Flexibility Act Becomes Law

President Trump has signed the Paycheck Protection Program Flexibility Act of 2020 (the “Act”). The Act makes several important revisions to the Paycheck Protection Program. It: extends the covered period to use funds for eligible expenses from 8 weeks to the earlier of 24 weeks or December 31, 2020; reduces the percentage of eligible expenditures that must be used on “payroll costs” from 75 percent to 60 percent (but the 60-percent requirement is a cliff requirement: if the borrower does More +

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