Our Response to COVID-19
We at Livingston & Haynes are still working full-time. We are, however, implementing the appropriate “social distancing” practices going forward.
We are accepting returns dropped at our offices in secure mailboxes or electronically uploaded through our website. Your returns will then be mailed to you or electronically uploaded.
The tax filing deadline has been extended to July 15, 2020. This includes the first quarter estimate. It is NOT clear if this include the June 15th estimate but it logically would, but that has not been stated. Also unclear is the IRA contribution deadline of 4/15. For now plan to make any 2019 IRA contributions by the 4/15 deadline.
Fortunately, we have several tools available to continue operating safely. Now is the time for those who have not explored options, other than meeting in our office, to take advantage of other methods we offer. These tools include:
The telephone: This is a good substitute for the in-person interview. We can interview, review, answer questions and/or explain your taxes effectively over the phone.
The Internet: Of course, we need your documents to begin the process. The internet used properly, is very safe and effective for exchanging information. The documents must be in the proper format and the transmission must be secure.
Scan Technology: The documents must be in PDF (or equivalent) format before being sent to us. Photos (jpeg files) using a phone are generally not enough. Your home printer may have scanning capabilities and there are scan Aps you can use on your smart phone. Also, in many cases you can download your documents, such as W-2’s, bank statements, and other financial documents, in PDF format directly from the source.
Encryption: Once you have the documents ready to go DON’T JUST EMAIL THEM TO US! For your safety and ours, we will not open unencrypted attachments. A password is NOT encryption. In fact, we greatly prefer you NOT password protect your documents. Uploading your information to us using an encryption service is as simple as sending an email. Go to page 1 of www.lh-cpa.com and look for the “upload” button.
Mail: If you are not comfortable with electronic transmission, mail us your documents, and we will return your completed return via traditional mail.
Drop off: This only mitigates prolonged contact, but if you prefer to drop off in person, you may. We will then email or mail your tax return back to you.
The Federal Government’s Economic Response
All that is in the news is bickering between the parties but there has been legislation passed. We will try and summarize without getting to into the details, which are bound to change.
Families First Coronavirus Response Act (HR 6201, the “ACT”)
Family Medical Leave. This requires employers with fewer than 500 employees to provide both paid and unpaid public health emergency leave. Employees qualify if:
Employee has been employed for at least 30 days
Unable to work because the need to care for a child under the age of 18 because school or their place of care has closed , or a childcare provider is unavailable, due to emergency with respect to COVID-19.
First 10 days can be unpaid
Paid leave is required after that at a rate of 2/3rd the employee’s regular rate, not to exceed $200/day and $10,000 total
Emergency Paid Sick Time. Employers under 500 employees must provide 80 hours of paid sick time to full-time employees who can’t work for specific COVID-19 related reason. Part-time employees are eligible for a prorated amount.
This is immediately available regardless of the employee’s length of employment
Max is their regular rate up to $511 per day ($5,110 total) if employee is:
a. Subject to quarantine
b. Advised by a health professional to quarantine
c. Experiencing symptoms
3. Reduced to 2/3rds their regular rate not to exceed $200/day ($2,000 total) if they are:
a. Caring for someone described in a,b or c above
b. Caring for a son or daughter who school has been closed
Employer tax credits. These are not straight forward at all but in summary.
Credits will be available to the employer based on the payments above
There are some additions based on the health premiums the employer is paying
It looks like these credit will be collected by offsetting employer payroll taxes.
It looks like employers will be subsidized using future 941 offsets.
This is what we know so far. Package #2 to come.
Resources from the state of Massachusetts
On the local level, the state is providing a variety of resources for businesses. Visit their dedicated page, COVID-19 Resources and Guidance for Businesses, for information on grants and loans, emergency services and more. This site is being updated regularly.
Our goal is to provide our clients with the level of service they have come to expect, in a manner that keeps everyone safe.
We will get through this. Our hearts go out to those small business that are really going to take a hit as the country shuts down. Please be mindful of them and use their services whenever you can.