Federal and state governments continue to provide COVID relief programs to individuals and small businesses. Here are some of the latest relief programs:
- Presidential Order to defer employee payroll taxes. Effective September 1 through December 31, employers may elect not to withhold the employee share of social security tax on any employee paycheck with wages less than $4,000 for a bi-weekly pay period. Any deferred taxes are to be paid back January 1 through April 30, 2021, meaning employees will have a pro rata amount of the deferred taxes as well as their normal withholdings deducted from their pay during the first four months of 2021. To read more, here is the IRS’s news release: https://www.irs.gov/newsroom/guidance-issued-to-implement-presidential-memorandum-deferring-certain-employee-social-security-tax-withholding.
Employers will need to watch for possible updates to their accounting/payroll software. For example, Quick Books announced on August 31 they have not implemented any changes yet, but are in discussion with the IRS and will make changes when they get more direction.
- Iowa Livestock Producer Relief Fund. For the next two weeks, small Iowa livestock producers can apply for up to a $10,000 grant if they experienced an involuntary loss of income after March 17, 2020 due to COVID. Here are the details: https://www.iowaeconomicdevelopment.com/programDetails?pid=151&ppid=26#livestock
- Iowa Small Business Utility Disruption Prevention. Certain small businesses in Iowa that experienced a COVID related loss of income after March 17, 2020 that resulted in difficulty paying electric and gas utility bills, can apply for assistance up to $7,500. For additional details visit: https://www.iowaeconomicdevelopment.com/Business/energy-recovery
Please contact us if you have questions on these, or any of the relief programs offered to help individuals and businesses financially through the COVID pandemic.
Van Bruggen & Vande Vegte, PC