Paycheck Protection Program & Unemployment Update

Good afternoon,

Our office is inundated with requests regarding the PPP, unemployment, and economic income payments to individuals.  Many concerns are based on outdated or inaccurate information.  Please review this information provided.

PPP

Refer to the FAQ from the Treasury’s website on the PPP Program.  Please review it carefully if you have, or intend to apply for the PPP Program.  This is a loan program administered through banks and the SBA which is designed to help business stay operating through assistance with payroll and other related costs.  If you have no payroll, or cannot operate due to legal restrictions or closures, the amounts you can be loaned, and furthermore, possibly forgiven are very limited.  Any funds you may receive must be used in a very specific manner, as outlined in the attached.  You will also have to certify in good faith, with the penalty of fraud being criminal charge, that current economic uncertainty makes the loan necessary to support your ongoing operations.

We have been doing our best to keep you updated with the most recent information from the Treasury, SBA, and banks.  Please carefully review anything we send that may apply to you.

NJ Unemployment

Please refer to the two sheets attached regarding what falls into regular unemployment and what is considered pandemic assistance.  Note you may have to apply and be denied for regular unemployment to assess the pandemic assistance.

Economic Impact Payment

According to the IRS, tax filers will receive a one-time payment based on the following criteria:

  • Single adults with adjusted gross income of $75,000 or less get the full $1,200. The $1,200 payment is reduced by $5 for every $100 in income above $75,000. Full income phase-out is $99,000
  • Married couples with adjusted gross income of $150,000 or less get the full amount of $2,400. The payment is reduced by $5 for every $100, making the full payment phased out at $198,000
  • For every qualifying child under age 17, families will receive an additional $500. Retirees and people on disability are also eligible to receive a payment
  • Single filers with adjusted gross income exceeding $99,000 and $198,000 for joint filers with no children are not eligible
  • Social Security recipients and railroad retirees, who are otherwise not required to file a tax return, are also eligible and will not be required to file a return.

If you filed a tax return with the IRS for the years 2018 or 2019 and included the appropriate direct deposit information in either return, the IRS will automatically calculate your payment and electronically deposit it to the same banking account identified your filed return. No additional action is required. If you are not required to file a tax return (Social Security recipients, senior citizens etc.) and did not do so in 2018 or 2019, you don’t need to file a return to receive your payments. If the IRS does not have your current direct deposit information, you will have the opportunity to submit that via a secured IRS online portal being developed. All others will receive their payment via a check in the mail. The IRS urges anyone with a tax filing obligation who has not yet filed a tax return for 2018 or 2019 to file as soon as they can to receive an economic impact payment.

Additionally, please understand that we are doing the best we can to keep up with all requests and prioritize our resources in an order than will provide the most assistance to the most people.  As previously reported, most income tax filings and payments due April 15th have been automatically extended to July 15th.