We have the resources to
help reach your financial goals.
watch out for the "Gotchas"

A disturbing possibility: Many small business owners risk losing PPP loan forgiveness. 
 
Don’t fall victim to one of the “Gotchas”, which could limit or eliminate forgiveness.
  

  • Gotcha 1 – Headcount Reduction

  • Gotcha 2 – Pay Rate Reductions

  • Gotcha 3 – Missing the Rehire Window of Opportunity

  • Gotcha 4 – Missing the Pay Cut Reversal Window of Opportunity

  • Gotcha 5 – Bad Documentation

  • Gotcha 6 – The 25% Non-Payroll-Costs Rule

  • Gotcha 7 – Failing to Spend at Least 75% on Payroll-Costs Rule

  • Gotcha 8 – Self-Employed Folks Counting on Full Forgiveness
     

           
What is Connolly Steele doing to help our clients?
  

  • As we have promised, we are committed to bringing the best information to our clients as it becomes available.  We have devoted a full-time CPA on our staff as our go-to for all things COVID 19 relating to, but not limited to:

 

  • Payroll Protection Program Loan

  • Economic Injury Disaster Loan

  • Employee Retention Credit

  • Determining if you should give back the loan by May 7th deadline

    • “Need Verification” on the loan application was vague

    • Small business owners who received PPP loans are forced to quickly reassess whether they “needed” those loans

    • Treasury will deem a borrower’s initial certification of need to have been in good faith, where the PPP loan is fully repaid on or before May 7

 

  • Advisory Services will be available at our standard hourly rate. If you have questions or need information, our COVID devoted staff, along with the support of the payroll and bookkeeping department will assist.

 

  • COVID 19 Retainer Package (to help avoid the Gotchas listed above)

 

  • $1000 minimum which includes assistance in planning the use of your loan proceeds, updates on qualified expenses for loan forgiveness, review of bank loan forgiveness requirements, assistance with gathering the necessary documentation to apply for forgiveness and guidance for post loan forgiveness planning.

 

  • $750 minimum for above services offered to current Connolly Steele payroll clients, due to having payroll information readily available in our payroll system for reporting and analysis

 
There is a possibility, in some situations, planning fees may exceed the minimum.If that situation arises, we will notify you in advance to discuss.
 
 
 
 
When do I seek advisory help…as soon as loan money has been received.
 
Tracking your expenses correctly from the beginning is extremely important. Knowing the formulas to the Gotchas, and applying them, is necessary before money is spent or staffing decisions are made.
 
Lastly, be mindful of daily updates like the most recent IRS Notice 2020-32 which reads:
 
“Specifically, this notice clarifies that no deduction is allowed under the Internal Revenue Code (Code) for an expense that is otherwise deductible if the payment of the expense results in forgiveness of a covered loan pursuant to section 1106(b) of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act)”
 
Basically, meaning that the deduction for any forgiven amounts is not really a deduction. As you can see, this loan forgiveness process is currently evolving, and we are hopeful the fog surrounding PPP Forgiveness clears up soon.

Connolly, Steele + Company has kept the needed coordination between
payroll, taxes and accounting well understood and pinpoint predictable.

William Hunt


President
MEDCOM Solutions

Stay up to date on financial industry news and trends,
as well as getting an inside look into what is
happening at Connolly Steele + Co.

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pittsburgh, pa 15202

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