Financial Resources During Covid-19 (NYC Specific)

During these uncertain times, we wanted to share with you some helpful information and resources available to small businesses, employers,

and self-employed.

 

As always, please reach out to us with any questions you may have regarding your personal situation.

 

Small & Medium Sized Businesses 

With the Families First Coronavirus Response Actemployers with up to 500 employees must provide paid sick leave and paid family leave while also providing a refundable payroll tax credit to employers to cover 100% of the cost of wages.

Employers with less than 50 employees must apply for a hardship exemption in order to qualify.

The U.S. Small Business Association is providing assistance through the Economic Injury Disaster Loan program. Small businesses can access up to $2 million in low-interest working capital loans to help overcome the loss of revenue caused by the COVID-19 outbreak.

Kabbage is accepting and reviewing applications for PPP loans (as of 4/22). 

Click here for all of the details regarding the Families First Coronavirus Act.

Additional resources: 

https://www.forbes.com/sites/advisor/2020/03/20/list-of-coronavirus-covid-19-small-business-relief-programs/#18610345e89d

 

https://www1.nyc.gov/nycbusiness/article/nyc-employee-retention-grant-program

 

https://www1.nyc.gov/site/sbs/businesses/covid19-business-financial-assistance.page

Calculate your estimated PPP Loan using the document below 

Download the document below for all of the details about the PPE Loan

 

Employees 

Everything you need to know about the Croronavirus Aid Package: 

Who qualifies for stimulus checks?

Virtually all tax-filing American adults earning up to $99,000 annually will be eligible for some form of direct assistance from the government. Married couples and joint filers who earn up to $198,000 are also eligible, as are heads of household who earn up to $146,500.

How much will the stimulus checks be worth? 

Individuals who make up to $75,000 per year and heads of household who earn up to $112,500 will receive a $1,200 rebate from the federal government, while couples who earn up to $150,000 annually will receive $2,400. For those who exceed those income levels, the benefits are gradually reduced at a rate of $5 for every $100 of additional income, and are eventually capped at $99,000 for individuals, $146,500 for heads of household, and $198,000 for couples. Additionally, parents are eligible for a $500 rebate per child.

When will the stimulus checks be sent out?

This is where it gets tricky. Treasury Secretary Steven Mnuchin has said that he'd like to see Americans start receiving direct assistance in as little as two or three weeks after the stimulus package is signed into law-but that seems exceedingly optimistic. As Erica York of the Tax Foundation think tank notes, the quickest time frame in which the federal government has previously been able to issue stimulus checks has been six weeks.
 

"Historical precedent, plus the unprecedented crisis we're in, leads me to believe May is the earliest the [Internal Revenue Service] would be able to start sending any checks," York says.

How will I get my stimulus check? Will it be delivered through direct deposit?

For the roughly 70 million Americans who have already provided their direct-deposit bank account information to the IRS, rebates should be pouring into these accounts within weeks of the bill's passage, Senate aides told the New York Times on Wednesday. But those who haven't provided such information may have to wait up to four months for their checks to arrive-a time frame that surely works against the bill's intention of providing financial assistance to struggling Americans as soon as possible.

Is the stimulus check a loan-and will I have to pay it back?

No. As a direct payment designed to assist Americans through difficult economic times, the stimulus checks are yours to keep.

Are the stimulus checks taxable?

No. However, for Americans who have yet to file their 2019 income taxes, the rebates will need to be based on their 2018 income levels. That means that they could be subject to adjustment once people finally file their 2019 taxes, depending on whether they received too large or too small a rebate based on their most recent income levels.

 

The Tax Foundation's Erica York notes that the most recent version of the bill indicates that taxpayers who receive too large a rebate would not be required to return funds to the government, while those who received too small a check would see their rebate adjusted upwards.

Will retirees and Social Security beneficiaries get stimulus checks?

Yes. The proposed bill includes language that allows Americans receiving Social Security-many of whom are retired and don't file taxes-to obtain direct financial assistance through the coronavirus stimulus package. In such cases, the government would access their data through the Social Security Administration to determine their rebate.

 

That said, not all older people who are already reliant on government assistance are immediately eligible for a rebate. According to Steve Wamhoff of the Institute on Taxation and Economic Policy (ITEP) think tank, the current bill excludes recipients of Supplemental Security Income (SSI), a federal welfare program granted to elderly and disabled people who are often living in poverty and, in many cases, aren't required to file tax returns.
***Thank you to Fortune.com for this great information. 

ADDITIONALLY: 

NYS is waiving the 7-Day waiting period for Unemployment Insurance benefits for people who are out of work due to Coronavirus (COVID-19) closures or quarantines.

 

You may be able to work with your banks and credit cards companies to arrange a payment plan that works for your current situation. ​Additionally, payments for student loans held with the federal government are suspended until September 30.

Unemployment benefits of an extra $600/week depending on the state.

Additional resources:
 

https://www.bankrate.com/personal-finance/smart-money/what-to-do-if-lost-job-coronavirus/

https://www.cnn.com/2020/03/27/politics/stimulus-check-calculator/index.html

https://www.forbes.com/sites/advisor/2020/03/25/what-you-need-to-know-about-expanded-unemployment-benefits-for-covid-19/#6d39439236e4

 

https://labor.ny.gov/unemploymentassistance.shtm

 

https://www.labor.ny.gov/ui/pdfs/Unemployment-Filing-Instructions.pdf

 

https://www.ny.gov/sites/ny.gov/files/atoms/files/care-for-family-member.pdf

 

Self-Employed

For those who are self-employed, there is a refundable income tax credit available. 

Those who are self-employed or are freelancers are eligible for unemployment benefits but details are still cloudy on how the amount is calculated. We will add information as it comes in. 

Additional resources: 

https://www.forbes.com/sites/advisor/2020/03/25/what-you-need-to-know-about-expanded-unemployment-benefits-for-covid-19/#6d39439236e4

Download the document below for information on applying for

unemployment in New York State 

 

Tax Relief

The tax-return and payment filing deadline has now been extended to July 15.

New York is not extending its sales tax payment deadline, but is waiving late payment penalties. 

Due to the current restrictions put in place by the State, we have suspended all in-person meetings until further notice. We continue to offer the option for you to upload your tax documents online. This feature allows you to submit your documents to us any time from home, without an in-person meeting. The Genius Scan App on your phone allows you to scan documents and save them as PDFs. We will confirm with you once we receive all of your documents and reach out if we need any more information.

Additional resources: 

https://taxfoundation.org/state-tax-coronavirus-covid19/

Send Us a Message

WALLS FINANCIAL GROUP 

435 WEST 23RD STREET

SUITE 1BB

NEW YORK, NY 10011

Located in Chelsea, NYC

Just West of 9th Avenue

Closest trains - 1, C, E, F & V at 23rd Street

OFFICE (212) 372 3403

FAX (212) 202 4896

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