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The MSCPA Legislative Brief offers you information and resources available through federal and state governments regarding business loan programs, Department of Labor (DOL) and Department of Health (DOH) updates, and news as it relates to the impacts of COVID-19 on our profession, the economy and our Society. For more information, visit the MSCPA's Coronavirus Resource Center.
We're working to keep you informed in a world that changes by the minute. If you have anything you'd like to share, or if we can help you in any way, please reach out to Zach Donah at zdonah@mscpaonline.org or 617.303.2411, or Larry Liuzzo at lliuzzo@mscpaonline.org or 617.303.2405.
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SBA Announces Safe Harbor for PPP Loans Under $2 Million, Extends Repayment Deadline to May 18
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In updated guidance (FAQ #46), the "Small Business Administration (SBA), in
consultation with the Department of the Treasury, has determined that the following safe harbor will apply to SBA's review of PPP loans with respect to this issue: Any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith."
The SBA also released FAQ #47, which extends the May 14 deadline for borrowers to repay the PPP loan in full to May 18.
For the full text of the guidance, click here.
The SBA is expected to issue final rules in the coming days, and we will share updates as soon as we receive them.
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June 30 License Renewals & CPE Extensions Moves Closer to Reality
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The Board of Public Accountancy voted this week to extend the June 30 deadline for even-year license renewals and CPE requirements to September 30, and to extend the firm affidavit deadline to November 2. Please note: this will not go in effect until a review is completed by the Division of Professional Licensure and is approved by Governor Baker.
We hope to have official confirmation next week, and we will share that as soon as it's confirmed.
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Four-Phase Approach to Reopening Massachustetts Economy
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Governor Baker announced a Four-Phase Approach to reopen the Massachusetts economy with the goal of the first phase to begin around May 18. Though details of the plan are still vague, the reopening will be ultimately determined by public health guidance and will demand all industries to adhere to strict workplace policies to protect employees and customers alike. We expect the Governor to announce the initial wave of industries allowed to reopen in the coming days.
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Governor Baker Files $1 Billion Supplemental Budget
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Governor Baker filed a $1 billion supplemental budget this week to cover state spending for equipment and program costs related to the COVID-19 pandemic. According to the Governor's office, "this spending will result in no net cost to the Commonwealth, after anticipated federal reimbursement and other federal funding sources."
To read the press release from the Governor's Press Office, click here.
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House Democrats Unveil $3 Trillion Coronavirus Relief Plan
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Speaker Nancy Pelosi and House Democrats unveiled a $3 trillion coronavirus relief package, dubbed the Heroes Act, on Tuesday. Among the many provisions outlined in the legislation, it includes $500 billion for state governments, $375 billion for local and county governments and $599 million in additional payments to individuals. We anticipate the House will vote on the bill by the end of this week. While it is unlikely this bill will be adopted by and passed in the Senate as currently written, this forms a framework for discussions regarding the next phase of coronavirus-related
relief packages.
To read the summary of the Heroes Act, click here.
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IRS Guidance – Temporary Changes to Sec. 125 Cafeteria Plans
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With the goal to provide relief to taxpayers during the pandemic, the temporary changes to Sec. 125 cafeteria plans extends the "claims period for health flexible spending arrangements (FSAs) and dependent care assistance programs and allows taxpayers to make mid-year changes."
Notice 2020-29 increases flexibility for mid-year elections under Sec. 125 cafeteria plans during the calendar year 2020 regarding employer-sponsored health coverage, FSAs and dependent care assistance programs.
Notice 2020-33 increases the unused health FSA carryover amount to a maximum of $550.
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Special Election Alert: Tuesday, May 19
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Residents of the
Second Hampden & Hampshire State Senate District
and the
Plymouth & Barnstable State Representative District
will have the opportunity to vote next Tuesday, May 19.
To find where your polling location is, click here. Please note that, due to COVID-19 precautions, some voting locations may be changed. Contact your local town clerk's office for more information.
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Business Interruption Insurance and COVID-19 Webinar (5/18)
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In this webinar, you'll learn insurance coverage and business losses that can be covered if your firm/company was closed by government order and how losses being covered depends on the language of your insurance policy. You'll also discuss civil authority and dependent property coverages, net profit or loss before taxes that would have been earned plus continuing expenses, including payroll and extra expenses, whether business interruption insurance applies to your client's business, what steps you
need to take and so much more.
MSCPA members will earn 1 CPE credit. This webinar is FREE for MSCPA members and $25 for non-members. To register for the webinar, click here.
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Economic Impact Payment (EIP) Information
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The IRS provided further guidance on the economic impact payments (EIP) that have gone out across the country. In light of recent news that deceased individuals have also received such payments, the IRS included Question 10,
which states that payments sent to individuals who died before receipt of the EIP should be returned.
Question 41
outlines the return process.
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New SBA Guidance for PPP
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DOR & IRS Updates
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New England Advocacy Coalition
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In March, MSCPA President and CEO Amy Pitter formed the New England Advocacy Coalition, which is comprised of CEOs from each of the New England state societies. To stay in touch and share best practices, the group agreed to meet once every quarter and share monthly updates distributed via newsletters graciously compiled by our friends at the Connecticut Society of CPAs. We are excited about this endeavor and look forward to building upon our strong relationships with our friends and neighbors.
To read the May issue of the New England CPA Society Government Relations Update, click here.
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AICPA Resources
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The AICPA has a dedicated resource page for the PPP, including an infographic outlining recommendations for the PPP Application Documents for Lenders and a set of FAQs identifying keys areas in need of immediate relief and latest developments to the "20 most frequently asked questions on tax filing and payment relief." Both can be found here.
To view the AICPA Coronavirus Resource Center webpage, click here.
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Massachusetts Relief Programs
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Massachusetts COVID-19 Relief Fund
The relief fund is dedicated to supporting healthcare workers, first responders, frontline essential employees and our most vulnerable neighbors. To learn more, click here.
Small Business Relief & Assistance
Some local banks and municipalities may be providing relief for residents and small businesses that are experiencing issues making rent or mortgage payments. Call your city or town hall to inquire. Click here to view a list of available programs.
Safely Support Those in Need during the COVID-19 Outbreak
Many firms and companies are giving back to their communities in a number of creative ways. Please check out this list of Massachusetts organizations you can give back to as an individual or as a firm/company.
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DPH Updates
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Click here to read updates from the Massachusetts Department of Public Health (DPH) regarding COVID-19.
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COVID-19 Resources and Guidance for Municipal Officials
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For those who work with cities and towns across the Commonwealth, the Division of Local Services has a dedicated webpage that provides finance guidance to city and town officials related to the state of emergency. For more information, click here.
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Massachusetts Health Connector Enrollment Period Extended
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The Health Connector extended its enrollment period through May 25 due to the COVID-19 outbreak. If you've lost your health insurance due to a job loss and want to see if you qualify for health coverage, click here.
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DOL Updates
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The Department of Labor (DOL) is now processing Unemployment Insurance (UI) applications for self-employed individuals. To apply, click here.
To view the U.S. Department of Labor COVID-19 resource page, click here.
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Connect with Your Peers on The HUB
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To ask questions and share resources with your fellow CPAs in Massachusetts, you can always head to our online community. New posts and information are being added every day. Head to The HUB by clicking here.
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