Leaders of the Accounting Industry
Stahlberg, Manuel & Associates, P.C. was formed in 1999 in Kalispell, MT and continues to be a recognized leader in the accounting industry. Stahlberg, Manuel & Associates is known for high quality professional services and integrity. It has expanded since 1999 to include additional CPAs and professional staff.
The firm is large enough to provide a wide variety of services, but small enough to provide personalized attention to the needs of each client. Thank you for you interest in Stahlberg, Manuel & Associates, please don’t hesitate to contact us with questions you have about the accounting, tax preparation, payroll, and business consulting services we offer.
Steve Stahlberg, Jessica Manuel, and the team
Coronavirus COVID-19 and Filing Updates:
March 21, 2020 UPDATE FOR THE CORONAVIRUS COVID-19 AND FILING DEADLINES:
Our office is remaining open to clients for the time-being, but if you have an appointment and would prefer to change it to a phone conference or skype interview, please call our office at 406-257-8399 and the receptionist will be happy to help you. We are being diligent to clean doors and other surfaces to help minimize the risk of spreading infections or colds. We are also providing hand sanitizer in our conference rooms and front counter for clients and staff to use as needed. We would like to encourage you to use electronic communication when possible, for your own protection and the protection of others. If you would prefer to email or fax your information to us, please use the following contact information:
[email protected] or send a fax to: 406-257-8067
FILING AND PAYMENT DEADLINES FOR THE IRS AND THE STATE OF MONTANA, updated March 21, 2020:
Both the IRS and the state of Montana have now extended the filing deadline and date to pay income taxes from April 15, 2020 to July 15, 2020.
Per the IRS: “Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax. Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief. Individual taxpayers who need additional time to file beyond the July 15 deadline, can request a filing extension by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Businesses who need additional time must file Form 7004.”
Per the State of Montana: “Governor Steve Bullock today extended the payment and filing deadlines for 2019 individual income taxpayers to July 15 in accordance with the new federal filing deadline. Extending the state filing deadline is in line with an announcement from the IRS to extend its deadlines for federal income tax filing and payments to July 15. The Montana Department of Revenue will be lenient in waiving penalties and interest associated with late tax payments and the department will work with taxpayers on an individual basis. The deadline for those making estimated tax payments for the first quarter of 2020 has also been extended to July 15. The due date for the second quarter remains July 15 at this time.”
We hope and pray that everyone stays safe and well! Please be cautious and follow the health guidelines to help stop the spread of the virus.
Payroll Updates Due to COVID-19:
March 20, 2020 Update:
Brand new law signed this week; employers with less than 500 employees are required to provide paid sick/family leave. Here are the highlights:
This applies to employees as of April 1, 2020: the bill passed by Congress requires employers with fewer than 500 employees to provide paid sick leave to employees who are forced to stay home due to quarantining or to care for a family member (“qualified paid sick leave”) or to care for a child if the school or place of care is closed (“qualified family leave”). The bill compensates employers and the self-employed for this paid leave in the form of a tax credit.
In the case of sick leave wages paid by an employer to an employee, the employer receives a refundable credit against its share of Social Security (Form 941) payroll tax. The credit can be claimed on a quarterly basis, equal to 100 percent of the amount of sick leave wages paid under the new law. The amount of the credit is limited to $200 per day. However, the credit is increased to $511 per day if the employee is on leave because he or she:
- is subject to a federal, state or local quarantine or isolation order related to COVID-19;
- has been advised by a health care provider to self-quarantine due to concerns related to COVID-19; or
- is experiencing symptoms of COVID-19 and seeking a medical diagnosis
The amount of total hours of paid sick leave is limited by the new law and the payroll tax credit is limited to 80 hours of wages.
For family leave wages paid by an employer, a separate refundable payroll tax credit applies, with different limitations. The 100 percent credit against the employer’s share of the payroll tax is limited to $200 per day, up to an aggregate of $10,000.
For self-employed persons, the credit is allowed against regular income taxes. The limit on sick leave wages is determined by multiplying the number of days (subject to limitation) the self-employed person is unable to perform services in the trade or business by the lesser of 67% of the taxpayer’s average daily self-employment income, or $200. The limits are increased to 100% and $511, respectively, in the case of the three scenarios that also apply to the employer payroll tax credit. The same calculation is made for family leave wages, with days unable to perform services (no more than 50) multiplied by the lesser of 67% of the taxpayer’s average daily self-employment income, or $200.
The new law provides numerous requirements, limitations and definitions relating to the application of the mandate, as well as the credit.
SBA Loan Forgiveness Program (Paycheck Protection Program):
March 29, 2020 Update:
Businesses, 501(c)(3) non-profits, 501(c)(19) veteran’s organizations, and Tribal business concerns with not more than 500 employees (and in certain instances a larger number of employees), as well as sole-proprietors, independent contractors and other self-employed individuals are eligible. The SBA is also waiving its credit-elsewhere test, meaning that small businesses with credit available elsewhere are eligible for loans under the Paycheck Protection Program.
Eligible enterprises may obtain a loan of up to $10 million. The loan amount is calculated by reference to payroll costs incurred by the business and roughly equal to 2.5 times the company’s average monthly payroll costs.
Loan proceeds may only be used to support payroll (not including compensation above $100,000 in wages), such as employee salaries, paid sick or medical leave, insurance premiums, and mortgage, rent, and utility payments. Borrowers are required to certify that the loan is necessary due to the uncertainty of current economic conditions caused by COVID-19; that they will use the funds to retain workers and maintain payroll, lease, and utility payments; and that they are not receiving duplicative funds for the same uses from another SBA program (e.g. the Economic Injury Disaster Loan [EIDL] program).
No collateral or personal guarantees are required, loan payments are deferred for at least 6 months (and not more than one year), there is no prepayment fee, and all fees are waived.
Loans made under this program are eligible for loan forgiveness. The borrower must apply for forgiveness with its lender directly. The amount forgiven is based upon a formula, taking into consideration- for example- employee retention and amounts spent by the borrower on eligible payroll costs, mortgage interest payments, rent payments and utility payments during a specific period of time. Any amounts forgiven are NOT taxable to the borrower as gross income. Any loan amounts not forgiven at the end of one year must be paid by the borrower over a period of up to 10 years at a maximum interest rate of 4 percent.
How to apply:
Loan will be made through lenders that have been approved by the SBA. Applicants work directly with those lenders. The SBA will guarantee these loans. The SBA has an online tool that helps small businesses connect with SBA-approved lenders. Additionally, the U. S. Treasury has the authority to approve additional lenders. Business owners can also check with their local SBA District Office for an updated list of approved lenders participating in the Paycheck Protection Program. Treasury Secretary Steven Mnuchin has indicated that lenders should be able to issue small business loans under the Paycheck Protection Program by the end of next week (around April 3, 2020).
Emergency SBA Loan (EIDL Grants):
March 29, 2020 Update:
Earlier this month, the SBA announced that in designated states and territories small businesses and private, non-profit organizations that are suffering substantial economic injury as a result of COVID-19 may qualify for EIDLs (Economic Injury Disaster Loans). EIDLs are low-interest working capital loans- up to $2,000,000- made directly by the SBA. In connection with this stimulus package:
- Tribal businesses, cooperatives, and ESOPs with fewer than 500 employees, as well as sole proprietors and independent contractors, are also now eligible for EIDLs;
- personal guarantees on advances and loans under $200,000 are not required (but will still be required on advances and loans over $200,000);
- the requirement that an applicant must have been in business for one year is waived; and
- the credit-elsewhere test is waived, meaning that small businesses that have credit available elsewhere are now eligible for EIDLs.
The stimulus package also establishes an estimated $10 billion Emergency Grant under the EIDL Program. Details include:
- an eligible entity that has applied for an EIDL due to COVID-19 may request an advance on that loan, up to $10,000;
- the applicant must certify that it is an eligible entity under the SBA guidelines;
- the SBA is required to distribute the emergency advance to the applicant within three (3) days of the applicant’s request;
- the advanced may be used towards paid sick leave to employees, payroll, increased costs of materials, rent or mortgage payments, and repayment of other obligations that cannot be met due to revenue losses; and
- the advance does not need to be repaid, even if the applicant is subsequently denied for an EIDL loan.
This loan is subject to long-term repayment, up to 30 years, with an interest rate of 3.75% for small businesses and 2.75% for non-profits.
The application for this loan is made directly on the SBA.gov website, and not through lending institutions.
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Information at Your Fingertips
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We have compiled some key resources that will help you understand the current financial climate as well as upcoming changes and how you can benefit form them. We will periodically update these resources as new information comes available.