If you run a small business that has been negatively impacted by the COVID-19 pandemic, it’s important to consider all the ways your small business can get support and additional liquidity as you weather this storm. While the second relief package and the small business loan reserve may be quickly depleting, there are still ways for your business to get support, and even cash. Beyond is here to help you find the relief that best fits your business’s needs—read on to find out the additional assistance programs we can help with.
Employee Retention Credit
If your business was ordered to shut down or suspend business operations due to COVID-19 and your receipts dropped below 50% as a result, you may qualify for the Employee Retention Credit. For those businesses that did not take a Paycheck Protection Program (PPP) loan, this program allows you to be reimbursed for up to $5,000 of wages per employee through a payroll tax credit. Our online payroll platform can reduce your immediate cash outflow with this credit and help you get a refund back from the government if your qualified wages were more than your payroll taxes.
Payroll Tax Deferral
The Payroll Tax Deferral can give you a significant or complete reduction of the employer portion of your payroll taxes for the rest of this year. This deferral applies to deposits and payments of your share of Social Security tax, that would otherwise be made during the period that began on March 27 and ends on December 31. While this benefit cannot be combined with a PPP loan if seeking forgiveness, it can be combined with an Employee Retention Credit to further improve your cash flow.
FFCRA Leave Pay
All employers (even small businesses) are now required to pay employees who are sick (related to Coronavirus), staying home with a sick relative, or caring for a child who cannot go to school. If you helped pay sick employees or employees home caring for a child out of school, you could qualify for a reimbursement. Your business must have less than 500 employees and each employee requiring leave much have been employed for at least 30 days.
If you’re currently paying for workers’ compensation insurance in a lump sum or installment plan based on your estimated annual payroll, consider switching to a Pay As You Go plan. This plan allows you to receive a lump-sum refund of your premium for the unused portion of what you paid upfront, spread your payments out over the full term of your policy, and pay only the premiums required based on your real-time payroll levels. This is another great option to help free up your cash flow.
Business Capital Options
If your business needs some extra capital right now, we can help. From working capital loans that will give you short-term funds to pay your vendors to merchant cash advances, and flexible lines of credit, we have various business capital options to get your business the cash it needs—fast.
Keeping your business open right now requires a lot of moving pieces, and we know it can get confusing and overwhelming. That’s why we’re offering COVID-19 related payroll reporting to assist with Form 7200 if you’re applying for tax credits.