No. 13 JULY - SEPTEMBER l
l All about the IRS
coronavirus Economic Impact Payment
l Credits available for
companies affected by COVID-19
Hispanic Entrepreneurs (Hispanos Emprendedores), we have seen that in recent months a great pandemic has affected us both financially and emotionally, we want you to know that we are here to do the work that we have been committed to doing for over three years, to inform and educate our community. Like many of you, we have suffered the consequences of this world situation, but we have the Hispanic spirit of always moving forward, of overcoming the most complicated and difficult situations for our dreams, and for those whom we love and call family. Our edition tries to somewhat reflect the hope of overcoming all of this and shows what can be done during something like this. In the meantime, we continue to work and pray to God for us all.
Ă?NDICE
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All about the IRS coronavirus Economic Impact Payment
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Resources for Businesses Affected by COVID-19 in Tennessee
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Carol’s Daycare a place for the family
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Credits available for companies affected by COVID-19
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The Internal Revenue Service maintains the calculation and delivery of the Economic Impact Payment checks for coronavirus. This benefit was approved in the Coronavirus Economic Aid, Relief, and Security Act (CARES Act) and has begun rolling out since April. In Hispanos Emprendedores we explain who is eligible and clear up any of your doubts.
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Economic stimulus for citizens Due to the economic impact of the coronavirus, a series of benefits were approved through the CARES Law to provide financial assistance to workers and business owners. Among these, we find the Economic Impact Payment that began to be delivered in April. Economic stimulus checks are issued by the Internal Revenue Service (IRS) and most Americans are eligible. In the first four weeks alone, $200 billion was released to approximately 130 million people, according to information published by the Treasury Department and the IRS. People who filed a tax return in 2018 or 2019 will receive their payment automatically. In addition, Social Security, Railroad Retirement, and Veterans Affairs Department beneficiaries who are not required to file will receive automatic payment. However, there are other cases of people who are not required to file and qualify to receive this benefit. 7 questions about the Coronavirus Economic Impact Payment Next, we answer some frequently asked questions about the Economic Tax Payment.
1. Who is eligible? To receive this payment, you must be a US citizen or resident alien, have a valid Social Security Number, and not appear as a dependent on someone else’s tax return. You must have an adjusted gross income level of up to: $ 75,000 for individuals $ 112,500 for heads of household $ 150,000 for married people filing a joint return Those who receive Social Security, retirement, disability, survivor, railroad, or veteran benefits can automatically qualify. Some are not required to file but do qualify to receive the stimulus payment. In these cases, you will need to provide the IRS with your information through the non-filer tool. 2. How much will the payment be? If the individual’s income is $75,000 or less, they will receive a payment of $1,200. Married couples filing joint returns with incomes of up to $ 150,000 will receive $2,400. Parents with qualifying children will receive a payment of $ 500 per child. Those with gross income greater than this will receive a reduced payment. Individuals earning more than $ 99,000 or couples with incomes
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greater than $ 198,000 will not 5. How can I check the status of receive any payment. the payment? If you want to calculate the Check the status of your payment Economic Impact payment, check by entering the Get My Payment the IRS information. application, then entering your information, as well. 3. What do I have to do to receive the payment? 6. Will the IRS request information If you filed a tax return in 2018 or from me to send the payment? 2019 you do not need to take any action. Similarly, recipients of Social The Tax Service will not send Security, retirement, disability, any type of message requesting survivor, railroad retirement, or personal or bank account veterans may receive an automatic information. If someone asks you payment. to verify your data on behalf of the IRS or some organization that The IRS will use the information you is associated with it, it may be a already have to send payments. scam. We recommend that you However, there are some people immediately notify the IRS. who must send in their information. This can be done through Get My Another form of scam is to ask you Payment if you have already filed to call a phone number to cash a taxes. fake check that was sent to you. Taxpayers who did not file a 2018 or 2019 return must file the latter to receive payment. But if you are not required to file, you must give your information to the IRS through the non-filer tool.
7. Should I include the payment in the next statement?
Coronavirus economic stimulus checks are not part of gross income. Therefore, this benefit will not be included in the 2020 federal tax 4. How will I receive the payment? return. The IRS will deposit the payment into the beneficiary’s account if they already have this information. This information can be entered through the Get My Payment application. If the IRS does not have your account number, it will mail a check to the address on file. They will also be sending prepaid debit card payments.
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All information related to the economic impact of COVID-19 is updated frequently. Stay tuned for official information on benefits such as Coronavirus Economic Impact Payment, as well as guidelines for opening businesses from official sources.
From Hispanic Entrepreneurs, we offer you a series of resources for companies affected by COVID-19 in Tennessee. All businesses have been affected in one way or another, for this reason, we invite you to consider the options available in the state. Guidance for companies Businesses are essential in tackling the coronavirus pandemic by helping to stop the spread by complying with the standards the State of Tennessee has enacted; but also, by keeping the state’s economy going. Many have been affected by the crisis and have taken measures such as temporary closure, staff reduction, and others.
the impact of the crisis. At the same time, they offer guides for employers to know what to do in the face of the pandemic.
For example, the Center for Disease Control and Prevention published guidance for businesses and employers to respond to the coronavirus disease. This guide states how to prepare companies, what to do in case of infections, Among the most common problems how to reduce the transmission they face are access to capital, between employees, among other workforce capacity, inventory points. deficit, changes in demand, changes in marketing strategy, and sanitation In addition to these, various costs. resources have been enabled to which small companies, Because of this, both the federal and employees, and the self-employed regional governments - together can turn to overcome the crisis. The with various organizations - are following are some of them. working to help them cope with
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RESOURCES FOR COMPANIES be made online. They can also call COVID-19 Support AFFECTED BY COVID-19 the SBA Customer Service Center at Organizations (800) 659-2955 or send an email for Paycheck Protection Program more information. Various organizations have been activated to offer support As part of the Coronavirus Relief Unemployment claims to Tennessee businesses. For Aid, and Economic Security (CARES) example, Score dedicates a page Act, small Tennessee businesses The pandemic has caused a on its website to information affected by COVID-19 can apply for reduction in hours, personnel, and about the coronavirus (https:// loans through the SBA’s Paycheck temporary closure of companies. www.score.org/coronavirus). It Protection Program. Consequently, many citizens have also offers another type of support become unemployed. If this is the to the business community. The purpose of these forgivable case, they can file the unemployment loans is to help companies maintain claim through the www.Jobs4TN. Here is how some of these operations and withstand the gov website. organizations help: impact of the crisis, as well as help them support their employees. Unemployment insurance provides Score. Conducts remote mentoring, temporary benefits to people who in addition to organizing webinars Companies wishing to access the have lost their jobs through no fault and online workshops. PPP must have fewer than 500 of their own. employees. Additionally, the loans LaunchTn. They published a given are for the payment of payroll Companies affected by COVID-19 complete list of resources where and other commercial expenses can also file an unemployment claim you will find how to keep your such as rent, utilities, and mortgage for their employees. business running during and interests. after the pandemic. There are also opportunities for innovation, All application rules for the program Tennessee Talent Exchange virtual events, etc. are on the SBA website. It should also be noted that they have a maturity of The Tennessee Talent Exchange Life Science Tennessee. They 2 years, with an interest rate of 0.5% program seeks to match those also prepared a list of resources and do not require collateral. who are unemployed due to the focused on the investigation and COVID-19 crisis with companies that fight against COVID-19. Disaster Loans for Economic have job opportunities. Damage Regional resources. At this time, This TN Department of Labor and regional organizations have also It is another loan that is available Workforce initiative connects prioritized the fight against the through the SBA to help companies applicants with grocery, retail, and crisis. Go to your city’s Chamber of and non-profit organizations logistics companies, because, at this Commerce or entrepreneur center affected by the COVID-19 crisis. moment, these industries are the in search of information. Financial aid is limited to $2 million ones with the greatest demand for per applicant, with an interest rate personnel. These and other resources for of 3.75% for small businesses and companies affected by COVID-19 2.75% for nonprofit organizations. Those interested in applying to are intended to help businesses the program must do so through overcome the crisis. Stay informed The payment terms offered by the https://www.jobs4tn.gov/vosnet/ and go to support organizations to SBA are up to 30 years; however, this Default.aspx. reduce the impact on your venture. will be determined on a case by case basis. Furthermore, requests can
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David Bracamonte dbracamonte@hispanosemprendedores.com Carol MartĂnez Cala came to Clarksville with her family for the same reason that has brought thousands of families to this city - to be part of the United States Army. Like many other Hispanic families, they took the initiative to start their business, and thus, she was encouraged to open Carol`s Daycare, a company that was born from the idea of being able to share family care with other children. Carol’s Hispanic roots come from the Dominican Republic where her family is from. Before coming to Clarksville, she spent much of her life in New York where she was born, and where she began her working life at the age of 13 in summer programs, specifically in a dental office. Later, she was able to study at Baruch College where she 9
obtained her bachelor’s degree the steps necessary, it is a very in Human Resources Business delicate business because you Administration. are taking care of children, other people’s children and it’s a very Family business big responsibility. So, it is better to follow the rules, so as not to Carol worked several years in have problems later”. the daycare of the Fort Campbell military base. It is there where Retirement in peace she obtains more experience in this type of business, and learned Clarksville is a great familyhow to handle childcare and the oriented city to live in, they laws pertaining to it, “without a recognized that and they made doubt it helped me a lot, I learned the decision to stay “when we about the plans that must be retired from the Army, we decided implemented, the prices that can to stay here in Clarksville, partly be charged, working hours and for the children to finish school, what I can offer parents. ” the cost of living is less than we know New York is - for example, it Carol`s Daycare is a service is difficult to think about buying a company that came about from home in other states.” the need to spend more time with her family, “one of the reasons Business curiosity why I decided to do this business is because I wanted to spend As an entrepreneur, she more time with my children and recommends being very curious I managed to hire two more “as an entrepreneur you have people. In this way, I created to be very curious, that is part those jobs, which in turn were to of the entrepreneur’s mission, help us but they were also able discovering new problems to spend time with their families. and increasing performance. To open it we went through the Managing time well is vital, different stages, becoming well thinking strategically about informed was the first, and from what you are going to do, and there we went through all the networking will undoubtedly steps”. help you.” All businesses have a certain degree of responsibility, but Carol’s business specifically, goes a little further “to have a business like this, you have to follow all
The current situation of the pandemic has complicated work at the daycare since it could not be open to care for the children
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for a time. This type of business, mainly because of the number of families that come together in one place, was closed while waiting for directions. But they are already open again and Carol’s family is reunited with hope and faith that by complying with all hygiene measures, they will be able to get ahead. ++++ CONTACTS ++++ 3394 Dresden Way, Clarksville TN 37040 Business (931) 802-5000 / (931) 3022089 Cmartinez_cala@hotmail.com
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Given the negative effects of the pandemic, companies can access financial aid that allows them to keep employees and grant leave to those who cannot work. Learn with Hispanos Emprendedores the credits available to companies affected by COVID-19.
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Financial assistance for companies
tax credit of up to $10,000 in paid to everyone, will be considered, wages. whether they worked or not.
Many companies in the United States can access the financial credits that have been made available through the CARES Act. The purpose of these is to allow them to continue operating and to overcome the difficulties imposed by the coronavirus pandemic.
Businesses of any size, including organizations exempt from tax, are eligible. However, small businesses that have applied for loans through the Check Protection Program, as well as state and local governments and their instruments, will not have access to it.
The Internal Tax Service states the three new loans that these companies can access. Read on and find out what they are. We remind you that people can also access the economic impact payment for coronavirus.
To qualify, the business must have suspended all or part of its activities by order of the government due to the coronavirus. Those who have had a reduction in their gross income also qualify.
New credits companies
available
for
In the latter case, the IRS specifies that the income must be less than 50% of the equivalent quarter in 2019. When the income of the calendar quarter exceeds 80% of the equivalent period the previous year, the employer is no longer eligible.
Businesses affected by the coronavirus can benefit from financial assistance being offered by the government. In this case, How much is the credit and how we will refer to three of them: to claim it? • Employee retention credit The employee retention credit is 50% of up to $10,000 in qualified • Credit for paid sick leave wages paid to an employee. In • Expansion of family leave due to other words, the maximum amount is $5,000. illness Access to Employee Retention Credit This credit is aimed at enabling companies affected by the coronavirus to keep employees on the payroll. This is a 50% refundable
• With a higher average, credit is allowed for wages paid for the time they did not work. Employers can claim the credit for wages paid as of March 12, 2020, and before January 1, 2021. They will report total qualifying wages and health insurance costs on the quarterly tax return. It is also possible to reduce the amount of federal employment tax credit. If you do it this way, the employer must indicate the reduction using Form 941. The IRS has a page of frequently asked questions about the credit to clear up any doubts you may have. Credit for paid sick leave and expansion of family sick leave
These benefits are also part of the government’s response to the coronavirus as part of the CARES Law. This regulation establishes that companies must grant leave to employees who cannot work due to the coronavirus. These are entitled to paid leave of up to 10 days (80 hours) at the employee’s regular rate of pay up to $511 per day and Qualifying wages depend on $ 5,110 in total. the average number of full-time employees the business had in Similarly, workers who need to care 2019: for someone with coronavirus are entitled to leave. In this case, leave • If you had an average of 100 or is for up to 2 weeks (80 hours) at 2/3 fewer employees, the wages paid
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of the employee’s regular pay rate; up to $200 per day, and $2,000 total. Employees who must stay home with their children because the school or childcare provider is not available can also receive up to 10 weeks’ leave on family credit and paid sick leave at 2/3 pay. In this way, they will receive up to $200 per day and $12,000 in total.
HAY SEIS RAZONES THERE ARE SIX REASONS WHY EMPLOYEES MAY ACCESS THESE LEAVES: 1. You have an order from the authorities to remain in quarantine or isolation because of COVID-19. 2. You have self-quarantined because of COVID-19 based on advice from a healthcare provider. 3. You have COVID-19 symptoms and await the medical diagnosis. 4. You are in the care of a person who is quarantined for reasons 1 and 2. 5. You must care for a child because school or childcare is not available due to the coronavirus. 6. Due to some other similar situation to those established by the Secretary of Health and Human Services. You can consult the IRS to see if your company qualifies for any of the credits available to companies affected by COVID-19. On their website, they keep the information updated and show how your business can access these financial aids.
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