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Important PPP Update

Good morning my Concierge Family,

We have some exciting news. Last week the House of Representatives passed a bill updating the PPP

program. Yesterday, the U.S. Senate passed the House version of Paycheck Protection Flexibility

Act, H.R. 7010, tripling the time allotted for small businesses and other PPP loan recipients to spend the funds and still qualify for forgiveness of the loans. The bill passed in a unanimous vote. Among the key provisions is a change in the threshold for the amount of PPP funds required to be spent on payroll costs to qualify for forgiveness to 60% of the loan amount. The bill moves the June 30 deadline for spending the PPP funds to Dec. 31 to accommodate the new 24-week window.

The Senate approval sends the House bill, to President Donald Trump, who is expected to sign it.

Following is a summary of the legislation’s main points:

● Current PPP borrowers can choose to extend the eight-week period to 24 weeks, or they can keep the original eight-week period. This flexibility is designed to make it easier for more borrowers to reach full, or almost full, forgiveness.

● New PPP borrowers will have a 24-week covered period, but the covered period can’t extend beyond Dec. 31, 2020.

● The payroll expenditure requirement drops to 60% from 75% but is now a cliff, meaning that

borrowers must spend at least 60% on payroll or none of the loans will be forgiven.

● Borrowers can use the 24-week period to restore their workforce levels and wages to the pre-pandemic levels required for full forgiveness. This must be done by Dec. 31, a change from the previous deadline of June 30. The legislation includes two new exceptions allowing borrowers to achieve full PPP loan forgiveness even if they don’t fully restore their workforce. The amount of loan forgiveness will NOT be reduced when a borrower experiences a loss of FTEs if the borrower, in good faith, is able to document any of the below:

○ There was an inability to rehire individuals who were employees of the eligible recipient on

February 15th,

○ There was an inability to hire similarly qualified employees for unfilled positions on or

before December 31, 2020, or,

○ There was an inability to return to the same level of business activity as such business was

operating at before February 15th due to compliance with requirements established or guidance

issued by the Secretary of Health and Human Services, the Director of the Centers for Disease

Control and Prevention, or the Occupational Safety and Health Administration during the period

beginning on March 21, 2020, and ending December 31, 2020, related to the maintenance of standards

for sanitation, social distancing, or any other worker or customer safety requirement related to

COVID– 19. This is the BIG ONE. It basically provides that if the world is such that on December

31st, restaurants, and bars, for example, are unable to fully open due to government orders, any loss in FTEs resulting from such restrictions should NOT be taken into account in computing the required reduction in the forgivable amount.

● The maximum amount that can be paid to any one employee that will be forgiven is capped at an annualized salary of $100,00. For a 24-week covered period, this limit will be reached once an employee receives $46,153 in cash compensation. H.R. 7010 does not make that clear, but here’s to hoping that soon-to-be-released guidance does.

● New borrowers now have five years to repay the loan instead of two. Existing PPP loans can be extended up to 5 years if the lender and borrower agree. The interest rate remains at 1%.

● First payments on the loan were originally deferred for six months. Under H.R. 7010, the

deferral of loan payments is granted until the date the lender receives the forgiveness amount from

the SBA, which in most cases will be significantly longer.

● The bill allows businesses that took a PPP loan to also delay payment of their payroll taxes,

which was prohibited under the CARES Act.

I know this is a lot of information to take in. As always we are here for you to answer any comments, questions, or concerns. We are just a phone call email or text away and remember we are all in this together and will get out of this together.

Have an amazing day everyone!

Please call or email us for more information and questions.

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Jocelyn Sihathep (Jo1)

Office Manager

We have a Sun Devil in the house! We are honored to add to our team, Jo. She is a graduate of Arizona State University (Fear the Fork) and is looking to broaden her knowledge and understanding of business and accounting.

She is the engine of our fine-tuned machine. Her “can do” attitude, commitment to customer service and outstanding organization skills allows us to focus on what matters most, our clients. She is amazing with technology and strives for excellence. She embraces the entrepreneurial spirit and is a great asset to our team.

Jocelyn Weatherley (Jo2)

Accountant

Jo was previously an accountant for a $60M company and their 13 subsidiaries. She is in charge of our accounting and bookkeeping department and serves our clients on their time schedule. Whether it is weekly, monthly or quarterly she helps provide reliable, useful and accurate information to our clients on their terms.

Jo performs full accrual accounting and is responsible for reconciling all accounts, journal entries, month end closing procedures and preparation of internal financial statements and analytics. She also assists in the preparation of sales and payroll tax returns. She holds a wide range of knowledge, from QuickBooks to travel (she spent most of her life in the UK), she’s your girl. She is excited to join the CCA team and ready to conquer tax season head on!

Dixie Cary

CPA and Tax Manager

Dixie is a Minnesota CPA and experienced accountant. She has over 25 years of accounting in both audit and tax, but her passion is tax. After years in the cold, she decided to leave the mid west and find a new home in Sunny Arizona. We are so happy that Dixie has joined our team.

Dixie leads and manages our entire tax department. She assists and leads a team through our busiest times while delivering quality, complete and accurate tax services for our clients. She is proficient in preparation, planning, and education of federal and state income taxes for individuals, businesses, estates, trusts, and exempt organizations.

Theresa Elaine Valade

CPA and Managing Partner
Theresa has over 27 years of experience in tax, audit and consulting. She was with the International CPA Firm of Arthur Anderson in Phoenix and San Francisco. She most recently was a partner with Moffitt & Company, P.C. Her areas of specialization are business consulting and advisory, audits, income tax planning and preparation, and IRS audit representation. Her industries of specialization are nonprofits, real estate, hospitality, franchises, mortgage banking and brokering, title insurance, escrow, health, and beauty.
One of Theresa’s biggest honors is being named the 2020 CPA firm of the year for her commitment and service to her clients during the challenges imposed by the COVID-19 pandemic. Putting passion and personalization at the forefront Theresa has led her firm to excellence by not only providing measurable results for clients but making them feel well taken care of during times of great uncertainty.
Theresa is also a member of the prestigious, Arizona Society of CPAs, ASCPA, 100% Membership Club. It is an honor to be part of this club that exhibit’s a high level of commitment to the Arizona Society of CPAs. We are privileged to be able to convey to our clients, staff, and colleagues of Theresa’s significant commitment to the CPA profession.