Important COVID-19 Updates: What Changes Will Affect You During This Time?

Due to the COVID-19 outbreak, constant changes are being made in terms of taxation, government, and otherwise. Please review the below to stay up to date during this time.

STIMULUS BILL OFFICIALLY PASSED

March 27, 2020 –The President has signed a historical $2 trillion stimulus bill to protect the economy amid the COVID-19 pandemic, which is now officially passed. This means a crucial break for individuals and businesses during this time and hope for the economy.

The items covered include:

  • Loan Forgiveness
  • Direct Payments to Individual
  • Increase in Unemployment Insurance Benefits
  • Deferred Payroll Taxes
  • Additional Hospital Funding
  • And more

More updates to come as the bill progresses. For further highlights click here.

STATE TAX FILING DEADLINE EXTENDED

March 27, 2020 – Tax Commissioner Jeff McClain announced that Ohio will be following the federal government by extending the usual April 15 tax filing deadline until July 15 due to the COVID-19 outbreak. This allows three additional months to file your state taxes as well. Similar to the IRS extension, individuals and businesses alike are permitted unlimited tax payment deferral without penalty. Though the deadline has been extended, it is still encouraged to file your taxes now, this allows those with returns to get their money sooner.

DIRECTOR ISSUES STAY AT HOME ORDER

March 22, 2020 – In countless efforts to stop the spread of COVID-19, Amy Acton, MD, MPH, Director of the Ohio Department of Health, made special orders on March 22 requiring all Ohioans to follow a Stay At Home order with the exception of essential businesses. What type of business is considered essential? Click here for the full list.

IRA CONTRIBUTION EXTENDED

March 21, 2020 – The deadline for 2019 regular contributions to an IRA, both Roth and Traditional, have been extended to July 15, 2020.

HEALTH INSURANCE COVERAGE FLEXIBILTY

March 20, 2020 – In Ohio, all health plan issuers are ordered to comply with the following requirements during this state of emergency:

  • Employee Eligibility – Insurers must permit employers to continue covering employees under group policies even if the employee would otherwise become ineligible.
  • Premium Payment Delays – Allow option of deferring premium payments interest free for up to 60 days from original due date.
  • Continuation of Coverage – As long as one employee remains active, eligible employees may elect to continue coverage under COBRA.
  • Special Enrollment – Premium subsidies may be available for those who qualify after losing coverage.

This expires when the state of emergency is removed. Learn more here.

FEDERAL TAX FILING DEADLINE EXTENDED

March 20, 2020 – The U.S. Treasury Secretary Steven Mnuchin has officially extended the usual April 15 tax filing deadline until July 15 due to the COVID-19 outbreak. This allows three additional months to file your federal taxes amid the coronavirus pandemic. Individuals and businesses alike are permitted unlimited tax payment deferral without penalty. Though the deadline has been extended, it is still encouraged to file your taxes now, this allows those with returns to get their money sooner.

IRS NOTICE 2020-17 EXTENDED PAYMENTS

The due date for making federal income tax payments is postponed to July 15, 2020. As for state, Ohio has not yet conformed to the July 15 extended payment due date. The legislation is still pending.

The COVID-19 relief provided in this section is available solely with respect to federal income tax payments (including self-employment income) due on April 15, 2020. Find the full details of IRS Notice 2020-17 Section III here. Taxpayers who find themselves subject to such penalties or additions can seek reasonable cause relief for a failure to pay tax. They also can seek a waiver to the penalty for a failure to pay estimated income tax (the latter relief generally is limited to individuals and certain trusts or estates; it’s not available for corporations or non-profits).

REQUESTING DISASTER ASSISTANCE LOANS FOR SMALL BUSINESSES

March 17, 2020 – The Trump Administration released a relaxed criteria for Small Business Loans (SBA) to combat the COVID-19 economic disruption to over 30 million small businesses. For all the details please find the confirmation on SBA disaster loans here.  According to the U.S. Small Business Administration, the relaxed criteria will have two immediate impacts:

  • Faster, Easier Qualification Process for States Seeking SBA Disaster Assistance. Historically, the SBA has required that any state or territory impacted by disaster provide documentation certifying that at least five small businesses have suffered substantial economic injury as a result of a disaster, with at least one business located in each declared county/parish. Under the just-released, revised criteria, states or territories are only required to certify that at least five small businesses within the state/territory have suffered substantial economic injury, regardless of where those businesses are located.
  • Expanded, Statewide Access to SBA Disaster Assistance Loans for Small Businesses. SBA disaster assistance loans are typically only available to small businesses within counties identified as disaster areas by a Governor. Under the revised criteria issued today, disaster assistance loans will be available statewide following an economic injury declaration. This will apply to current and future disaster assistance declarations related to Coronavirus.

It is expected that all counties within Ohio will receive an economic injury declaration from the U.S. SBA this week that will enable eligible small businesses in Ohio to apply for an Economic Injury Disaster Loan in an amount not to exceed $2 million. If a business is within a declared disaster area, it can apply for an Economic Injury Disaster Loan. If the business meets certain SBA requirements including the SBA’s size standard based on revenue or number of employees.

Complete an application online or download and mail to the U.S Small Business Administration.

For more details, click here.

 

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