Kandell, Farnworth & Pubins, CPA's P.C.

CARES ACT PRELIMINARY LOAN APPLICATION CHECKLIST We have been in contact with several lending institutions over the last few days regarding the CARES Act Payroll Protection Loan Program. The SBA is currently in the process of developing applications and procedures related to these loans. Once the SBA has approved they will advise the banks as to the process and the banks will then have to develop their application procedures. Based on our discussions our expectation is that t...hey will begin accepting applications in the next 1 - 2 weeks. They are working as hard as they can to get this up and running as quickly as possible. At the current time we suggest all businesses that intend on applying begin to gather certain information that we feel will be requested. The below list are items that should be gathered now in preparation. Articles of Incorporation / Organization of each borrowing entity Bylaws/Operating agreement of each borrowing entity Copies of all owners' drivers licenses Payroll expense verification documents to include: IRS Form 940 and 941 and NY NYS 45 for all quarters 2019 Payroll Summary report for prior 12 month period by employee 1099 Forms Group health insurance costs for last 12 months Employer retirement plan contributions for last 12 months Trailing 12 month Profit and Loss Statement Most recent mortgage or rent statements Most recent utility bills Please reach out to us if you need assistance on gathering the above information.

Pay Obligations if Business Chooses or Must Close Operations KFP understands that businesses are making very difficult decisions regarding whether to continue operating during this ongoing public health crisis. ... If a business decides to shut down during the crisis, generally, the business would still be responsible to continue to pay benefits for anyone who was an employee on the date of closure. Below is a further clarification of businesses responsibilities: Would a business have to continue to provide FMLA benefits to an employee? Yes, but only for those who have already been quarantined (because they have the symptoms or self-quarantine)(at this stage, stay at home orders do not qualify) or those who have already taken leave to take care of children under 18 due to school closure or child care closure. What are the businesses responsibilities if it is confirmed that an employee has coronavirus and had contact with the entire staff requiring the business to shut down because every employee must be quarantined? Assuming the business has fewer than 100 employees, the dealer must pay 80 hours of sick pay for full-time employees and the average number of hours worked by part-time employees over a 2-week period under the federal paid sick leave law. Is the business required to pay out accrued sick, vacation and personal leave to employees? Yes, if the business closes and employees are laid off during the COVID-19 pandemic, the business would be obligated to pay the benefits described above. In addition, companies should pay accrued but unused sick pay. Companies may be obligated under a CBA or their own policies to pay out accrued but unused vacation, personal days. Are businesses required to provide specific notices to employees if the dealer decides to cease operations during the State of Emergency? Yes. Companies must provide a COBRA notice and WARN Act Notices if the dealership is eliminating at least 25 employees AND 33% of its workforce. The COBRA Notice must be provided within 30 days of the closure and WARN Notices must be sent as soon as is practical following the closure. Sample WARN Notices can be found on NYS DOL website in the Coronavirus section. A chart showing numerous scenarios and the variety of COVID-19 related state and federal leaves has been prepared by James E. McGrath, III, Esq. of Putney, Twombly, Hall and Hirson can be found below. https://mcusercontent.com//SCENARIOS_FOR_COVID_RELATED_LEA

Senate Passes $2 Trillion Coronavirus Relief Package Late last evening, the Senate passed the nearly $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act. This bill, known as Phase 3, is extremely beneficial for businesses of all sizes and includes generous and unprecedented provisions to help provide liquidity for businesses and to help businesses keep their employees on the payroll. The House of Representatives is expected to vote on the Senate measure tom...Continue reading

For many business owners, a company car is a sign they’ve achieved success. Here are the basic tax breaks and tax implications involved in this fringe benefit. http://bit.ly/2UaD6Ym

Attention employers! You may be able to reduce the tax you owe with a valuable credit. It’s called the employer credit for family and medical leave. Among other things, to be eligible, you must have a written policy that meets certain requirements and provide at least two weeks of paid family and medical leave to full-time employees and prorated leave to part-time employees. Pay must equal at least 50% of the employee’s normal wages. The credit is a percentage of leave pay, ranging from 12.5% to 25%, and is available for wages paid after Dec. 31, 2017, and before Jan. 1, 2020. For more details: https://bit.ly/2L2TYwg