Coronavirus: Tips and Help for Businesses

Reopening Connecticut

• Phase 3 Reopen - October 8 (hair salons, barber shops and libraries will also be allowed 75% capacity, up from 50% currently; places of worship will be allowed up to 50% capacity indoors capped at 200 people, up from 25% capped at 100 people; maximum capacity at outdoor event venues such as racetracks and amphitheaters will increase from 25% to 50%; private outdoor gatherings will now be capped at 150 attendees, up from 100) 
• Governor Lamont has issued an executive order addressing the rebuttable presumption regarding workers’ compensation benefits related to contraction of Covid-19
• Governor Lamont's Roadmap for Reopening Connecticut
• Phase 2 Reopen - June 17 (affects amusement parks; hotels/lodging; restaurants; museums, zoos, and aquariums; indoor recreation including movie theaters and bowling alleys; libraries; outdoor events; personal services including nail salons and tattoo parlors, sports and fitness facilities including gyms, fitness centers, and pools)
• Phase 1 Reopen - May 20 (affects outdoor dining, offices, retail and malls, museums and zoos, and outdoor recreation businesses)
• All businesses subject to these guidelines are required to self-certify they are following strict safety standards to keep employees and customers safe prior to opening. The certification system can be accessed here. The certification system can be accessed on the state website.

Workplace Safety 

Accounting, legal, and payroll services were all considered essential services under the Department of Economic and Community Development's final guidance, so accounting firms were never required to close. However, it is still preferred you work remotely if possible.

Executive order 7BB stipulates that all individuals must wear a mask or face covering in public spaces where the social distancing requirements of six feet are difficult to maintain - and this includes the workplace. Workers working alone in segregated spaces (private offices or cubicles) are able to remove their masks in that private space, but must wear a face covering when moving about the office. Read more safe workplace rules for essential employers.

Legislation and Relief

• Families First Coronavirus Response Act (FFCRA)
  • DOL Frequently Asked Questions
• Coronavirus Aid, Relief, and Economic Security (CARES) Act 
• Paycheck Protection Program Flexibility Act of 2020

The CARES Act and Paycheck Protection Program (PPP)

• PPP forgiveness simplified for loans of $50,000 or less 
• New PPP forgiveness guidance addresses owner-employee compensation, rent-related costs 
• New PPP guidance addresses health insurance, EIDL, other issues  
• New FAQs address PPP loan forgiveness
• The Connecticut Department of Revenue Services has posted the following Office of the Commissioner Guidance pertaining to the CARES Act:
  • OCG - 10, Regarding the Connecticut Tax Implications of the CARES Act
  • OCG - 11, Regarding Depreciation of Qualified Improvement Property for Connecticut Tax Purposes

• The Paycheck Protection Program Flexibility Act of 2020 became law on June 5, 2020. Among other items, the law:
  • Amends the PPP to give borrowers 24 weeks to spend loan funds and still obtain forgiveness, up from 8 weeks.
  • Reduces mandatory payroll spending from 75% to 60% while increasing nonpayroll expenses (rent, mortgage interest, utilities_ from 25% to 40%
  • Borrowers may now obtain full forgiveness even if they don’t fully restore their workforce.
  • Loan terms have been extended from two years to five.
  • Businesses may now delay paying payroll taxes even if they took a PPP loan.

• Paycheck Protection Program Frequently Asked Questions
• PPP Loan Forgiveness Application Instructions for Borrowers
• PPP Loan Forgiveness Calculator
• PPP Loan Forgiveness Services Matrix
• Paycheck Protection Program resources for CPAs
• CARES Act and Single Audit Requirements
• Interim final rule allows lenders to increase existing Paycheck Protection Program loans to partnerships and seasonal employers.

Connecticut Taxation Issues

• DRS Frequently Asked Questions on Extensions, DRS Operations, and More
• DRS Extends Deadlines for Filing Certain Administrative Protests and Tax Appeals
• DRS Announces Priority One Taxpayer Assistance Program to Assist Taxpayers Unable to Meet Collections Obligations Due to the Pandemic
• Connecticut DRS Extends Filing, Payment Deadlines for Certain State Tax Returns to Align with Federal Changes
• Guidance on the Suspension and Modification of Tax Deadlines and Collection Efforts
• Municipality Program Election Form

 
Federal Taxation Issues

• Latest News and Guidance from the IRS  
• IRS announces rollover relief for required minimum distributions from retirement accounts that were waived under the CARES Act
• Notice 2020-50 - Guidance for Coronavirus-Related Distributions and Loans from Retirement Plans Under the CARES Act
• Update on IRS Operations During COVID-19
• Economic Impact Payment FAQs 
• People First Taxpayer Relief FAQs
• Deferral of Employment Tax Deposits and Payments through December 31, 2020 FAQs (CARES Act) 
• Employee Retention Credit FAQs (CARES Act)
• COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Business FAQs (FFCRA)
• Cross-Border Tax Guidance Related to Travel Disruptions Arising from the COVID-19 Emergency
• Guidance for Taxpayers with Net Operating Losses (CARES Act)   

Maintaining Your CPA and CPA Exam 

• CPE Deadline Extended to December 31, 2020 - In March, CTCPA reached out to the State Board of Accountancy to request an extension of the CPE credit deadline; we surveyed our members to determine whether Connecticut CPAs wanted additional time to earn their 40 hours of CPE, and if yes, how much additional time. We shared the information with the State Board of Accountancy, and they voted to extend the CPE deadline until December 31, 2020. Accordingly, CTCPA Professional Development Director Lisa Bugryn is reworking the education schedule to ensure that members have a selection of classes throughout the remaining calendar year that will address time and learning demands.
• Prometric Testing Sites Reopened June 1 - Prometric resumed all testing for June 1; you can learn more about the restrictions and policies here.
• CPA Exam Testing Window Extended for Candidates - Prometric resumed testing for the CPA Examination on May 1, 2020. Per the federal government, the CPA profession falls under “essential services.” NASBA had recommended State Boards of Accountancy extend NTS expiring between April 1 to June 30, 2020 with a blanket extension until September 30, 2020. The Connecticut State Board of Accountancy agreed with that proposal and approved that extension. They did word the vote in a manner to permit that extension to automatically get pushed back further, should NASBA modify its recommendation at a later date.
• CPA Exam Credit Extension - All Connecticut Exam candidates with credit expiring April 1, 2020 - December 30, 2020will be extended until December 31, 2020. 
• NASBA Invokes Emergency Testing Period - The emergency testing period extends the 20Q2 CPA Exam testing window from June 10, 2020 to June 30, 2020.

Employment Issues

• DOL Guidance for Individuals and Employers
• Families First Coronavirus Response Act FAQs from the DOL
• Paid Family Leave Amendments Under the FFCRA (in effect until December 31, 2020)
• Payroll Tax Credits for Small and Mid-Size Employers
• Access Health CT Insurance Enrollment for Employees Who've Lost Health Insurance Due to Losing Their Jobs
• Guidance on Form 7200, Advance Payment of Employer Credits Due to COVID-19
       
     

Peer Review and Accounting and Auditing Issues

Peer Review:

• CPA firms will be granted six-month extensions for peer reviews, corrective actions, and implementation plans with original due dates between Jan. 1 and Sept. 30 of this year. 
• Don’t forget subsequent event footnotes in the event of coronavirus

Audit: 

• View Coronavirus audit and accounting resources, including remote auditing and risk assessment. 
• AICPA Auditing Standards Board (ASB) Votes to Delay the Effective Dates of SAS Nos. 134-140 by One Year
• Pandemic loan audits: Some certainty in uncertain times
• Single Audit Requirements under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL)

FASB: 

• FASB Issues Proposal to Delay Long-Duration Insurance Standard and Ease Early Adoption Provisions
• FASB Issues Taxonomy Staff Q&A Document on How to Apply the Taxonomy to COVID-19 Pandemic and Relief Disclosures 
• FASB Approves New Standards and a Proposed Effective Date Delay at Final Meeting of Chairman Russell Golden 
• FASB Offers Limited Effective Date Delays on Revenue Recognition and Leases Standards 
• FASB Issues Staff Q&A Document on Hedge Accounting During COVID-19 Pandemic
• FASB Issues Staff Q&A Document on Accounting for Leases During COVID-19 Pandemic

GASB: 

• GASB Adds Resources to Emergency Toolbox Addressing Issues Arising from COVID-19 Pandemic 
• GASB Proposes Application Guidance on CARES Act and Coronavirus Diseases Issues 
• Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance  
• GASB Issues Emergency Toolbox to Help Stakeholders Identify Relevant GASB Guidance
  
  

Connect with Peers – New CTCPA Connect Group Established: 'Coronavirus Conversations'

Many of you are probably curious about what your peers are doing and how you can better help your clients.

To give you a safe space to share your concerns, questions, and recommendations, we've established a "Coronavirus Conversations" group in CTCPA Connect. You can join now to follow the conversations (remember, you can request communications come on an immediate basis or as a daily or weekly digest), or accept the invitation sent directly to your email.