How to calculate your Payroll Protection Loan

Dear WZ Client,
In effort to keep you informed and provide you with the most current information, please see the attached chart as an example of how to calculate your SBA Payroll Protection Loan. This is simply an example and it might change as the information continues to come in.
We remain committed to providing you with the most up-to-date information as we know it. As always, we are in this together with you.
Stay healthy,
WZ Partners

SBA Payroll Protection Loan Program

March 29, 2020

Dear Clients,

You may want to consider applying for this particular SBA loan program for any entity that has payroll costs. This loan will give you up to 2.5 times of your average monthly payroll and then look at your payroll, health insurance, rent and utilities cost for the 8 week period immediately after you receive the loan and if those costs exceed the loan amount, and you do not reduce salaries by more than 25% or lay anyone off, then the entire loan is forgiven. Even if you have let some staff go, if you bring them back by a certain date it will not count in the loan forgiveness calculations.

Basically the government is covering your payroll and partial rent for 2 months.

They do not consider any payroll in excess of $100,000 so you would just have to cap the payroll calculation for anyone in excess of that amount but you still get to include them in the calculation for the first $100,000 of salary.

Applications are available at any SBA Lender (check and see if your current bank is an approved lender as it’s always best to work with a bank where you have an existing relationship).

If you already applied for the Economic Injury Disaster Loan and you decide to apply for this loan then you must choose one loan or the other or use the proceeds from this loan to pay off the other loan.

We have not yet seen the application since the program just passed Congress on Friday, but our understanding is that this loan application is more streamlined than the typical SBA loan application so it’s much easier to complete.

As previously mentioned, we have a partnership with a law firm in the city that is helping out clients with the application (they bill you directly) if you cannot do it yourself.

You may want to watch this video to assist you.

Video link here .

The WZ team is available to assist you with any questions and guidance.

Stay safe and healthy,

WZ Partners

Coronavirus Stimulus Bill Moves One Step Closer to Enactment

March 27, 2020
Dear WZ Client:
The C.A.R.E.S bill moves on to the House, which is reported to be planning a vote for this morning. If approved, the legislation would then proceed to the President to be signed.
In regards to the C.A.R.E.S act and its porovisions, Wagner & Zwerman LLP has initiated a joint COVID-19 collaboration group with our friends and associates from Falcon Rappaport and Berkman PLLC. This response group will address Disaster Relief Loans and help implementing all provisions of the C.A.R.E.S. act. More information on this collaboration to follow this afternoon.
The following are some of the bill’s key proposed provisions:
Relief for Individuals
  • Direct payments of $1,200 would be sent to most middle-income and lower-income individual taxpayers ($2,400 for joint taxpayers). The payment amount begins to phase out at $75,000 for singles and $150,000 for joint taxpayers at 5 percent per dollar of qualified income, or $50 per $1,000 earned. It phases out entirely at $99,000 for single taxpayers and $198,000 for joint taxpayers.
  • Expanded unemployment insurance for laid-off workers would allow for four months of full pay (typically three). Maximum unemployment insurance benefit would be raised by $600 per week for all workers including self-employed.
  • Required minimum distribution rules would be temporarily waived for certain retirement plans.
  • Federal student loan payments would be postponed without interest accruing through September 30, 2020.
  • Homeowners with federally backed mortgages could request loan forbearance for an initial period of 180 days due to financial hardships caused by COVID-19.
Relief for Businesses and Nonprofits
  • $367 billion loan program would be available for small businesses and nonprofits. The loans could be forgiven if businesses continue to pay their employees through the crisis.
  • Creditworthiness requirements for Economic Injury Disaster Loans (EIDL) would be temporarily eliminated, and $10 billion would be appropriated to the EIDL program to expedite payments to applicants.
  • The deadline for depositing employer payroll taxes would be deferred to be payable over the next two years – half due on December 31, 2021 and half due on December 31, 2022.
  • Certain employers would receive a refundable payroll tax credit of up to $5,000 for each employee on the payroll.
  • The bill lowers the amounts that employers must pay for paid sick and family leave under the Families First Coronavirus Response Act to the amounts covered by the refundable payroll tax credit ($511 per day for employee sick leave or $200 per day for family leave).
  • Limitations on excess business losses would be delayed until 2021.
  • Net operating losses (NOLs) earned in 2018, 2019 or 2020 could be carried back five years. The NOL limit of 80 percent of taxable income would also be suspended. Loss limitations would be modified for non-corporate taxpayers as well, including rules governing excess farm losses.
  • The net interest deduction limitation, which currently limits businesses’ ability to deduct interest paid on their tax returns to 30 percent of earnings before interest, tax, depreciation, and amortization (EBITDA), would be expanded to 50 percent of EBITDA for 2019 and 2020.
  • The bill includes a technical amendment regarding qualified improvement property.
Relief for Industries, States and Cities
  • $500 billion lending fund for industries, cities and states would include $25 billion for passenger airlines, $4 billion for cargo airlines, and $3 billion for industry contractors.
  • Healthcare system would receive more than $150 billion, including funding for hospitals, research, treatment and supplies.
  • State and local governments would receive $150 billion to address Coronavirus-related spending shortages.
  • Charitable Contribution Incentives – The bill includes a new above-the-line deduction for charitable contributions up to $300. The incentive applies to contributions made in 2020 and would be claimed on tax forms next year.
  • The existing cap on annual charitable contributions for those who itemize would be lifted, raising it from 60 percent of adjusted gross income to 100 percent. For corporations, the bill raises the annual limit from 10 percent to 25 percent.
We remain committed to providing you with the most up-to-date information as we know it. As always, we are in this together with you.
Stay healthy,
WZ Partners

Abatement of Penalties and Interest for Sales and Use Tax due to COVID-19

March 25, 2020
Dear WZ Client:
The following was announced 3/23/2020 from the NYS Department of Taxation and Finance:
“Governor Cuomo has issued an executive order expanding the Tax Commissioner’s authority to abate late filing and payment penalties.
This will allow the Commissioner to abate interest on quarterly and annual sales and use tax filings and remittances with a due date of March 20, 2020, for those who were unable to timely file and pay as result of the COVID-19 virus.”
To view the guidance issued, visit N-20-1, Announcement Regarding the Abatement of Penalties and Interest for Sales and Use Tax due to the Novel Coronavirus, COVID-19.
We remain committed to providing you with the most up-to-date information as we know it. As always, we are in this together with you.
Stay healthy,
WZ Partners

Fed Tax Filings and Payments Postponed to July 15

The IRS is extending the federal income tax filing deadline from April 15th to July 15th as part of a growing effort to stem the financial pain from the coronavirus pandemic, Treasury Secretary Steven Mnuchin announced this morning.

This move gives you three additional months to file your income tax returns for the 2019 tax year, without incurring interest or penalties.

Per Mnuchin, “all taxpayers and businesses will have this additional time to file and make payments without interest or penalties,”.

Mnuchin urged taxpayers who might receive refunds this season “to file now to get your money.”

Some individual states already have extended their own tax filing deadlines to various dates to give people relief. The IRS will be increasing pressure on states to align their deadlines with the new one for federal income tax returns.

Here is a helpful link here that lets you know each states tax filing requirement.

New York Gov. Andrew Cuomo, asked at a press conference if state residents should pay their state income taxes by the New York deadline of April 15, said the new federal guideline should be followed.

It is not yet clear if the deadline extension also will include the deadline for funding Individual Retirement Accounts for the 2019 tax year.

We remain committed to providing you with the most up-to-date information as we know it.  As always, we are in this together with you.

Stay healthy,

WZ Partners



March 20, 2020

Dear WZ Client,

As we press through these trying times, we are working hard to uncover all the available options to help you and your business. A potential option is the SBA Express Loan Program.

In order to qualify, a business must meet the eligibility requirements determined by the SBA under the SBA 7(a) program, which are:

  • You must be registered as a for-profit business
  • As the business owner you can’t be on parole
  • Your business must have fewer than 500 employees and less than $7.5 million revenue on average each year for the past three years
  • Your net income must be under $5 million (after taxes and not counting carry-over losses), and your tangible net worth must be less than $15 million
  • You must show you’re investing your own time and money into the business, having “invested equity”
  • Your business must be physically based in the United States
  • Your business must not be speculative, illegal, or non-profit
  • You’ll need to show you tried and failed to get funds from other financial lenders
  • You’ll need to prove you have a sound business purpose
  • You’ll need to prove you are not delinquent on any existing debts to the U.S. government

The key terms for the SBA Express Loan include:

  • Max loan amount: $350,000
  • Maturity: 5-10 years (7 max for a line of credit), or up to 25 years for real estate
  • Application turnaround time: Within 36 hours
  • Fund Dispersal time: 45-90 days after approval


We highly encourage all eligible businesses negatively impacted by COVID-19 to click on the link here for further information on how to apply for the SBA Express Loan Program.

The WZ team remain committed to keeping you “in the know” and support you, your family and your business in every way that we can.

Stay healthy,

WZ Partners


March 19, 2020

It was just announced that NYC, Nassau and Suffolk businesses among other counties are eligible for disaster loan assistance. Check out if your state and county is eligible HERE.
Uncle Sam is offering loans of up to $2 million to businesses that have been harmed by the coronavirus and cannot secure financing to keep operating.
The U.S. Small Business Administration will provide Economic Injury Disaster Loans to companies that are experiencing a temporary revenue loss. The funds may be used to pay debts, employee wages and other bills.
To be eligible, the affected business must have 500 or fewer employees and be in a designated disaster area. The business also must not be able to obtain credit elsewhere.
****ANNOUNCEMENT for Coronavirus (COVID-19)
If applying for Coronavirus (COVID-19) disaster declarations, please only select Economic Injury when inquiring about your business losses.
At this point there are still many unknowns as this is a very fluid situation. We are monitoring it closely and will keep you updated as the information changes.
If you have any questions or concerns please do not hesitate to reach out as we are here to help.
Stay healthy,
WZ Partners

Taxpayer Deferral Guidance UPDATED*

March 19,2020

Dear WZ Client:

The IRS Chief Counsel Office issued Notice 2020-17 on March 18 titled ‘Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic’. This update provides details about the deferral of federal income tax payments.

All taxpayers are technically considered to have been impacted by the COVID-19 pandemic and defined as Affected Taxpayers are now eligible to defer federal income tax payments that are normally due on April 15, 2020. The modified due date is now July 15, 2020. Taxpayers now have until then to pay before penalties and interest start accruing. The deferral relates to income tax due up to the “Applicable Postponed Payment Amount” (APPA), defined as:

  • $10 million for each consolidated group of C corporations or for each corporation which does not join in filing a consolidated return; and
  • $1 million for other taxpayers. The Notice confirms that this latter amount applies to individuals irrespective of filing status – meaning that a single person filing a federal income tax return has the same $1 million Applicable Postponed Payment Amount as a married couple filing a joint return. This rule effectively creates a cash flow marriage penalty on joint filers.

The Notice also goes on to explain that any tax due in excess of the APPA is subject to penalties and interest if not paid by the original April 15 due date.

  • If a single individual filer owes $2 million for 2019 federal income tax purposes, including self-employment tax, the payment of the first $1 million can be deferred until July 15, 2020.
  • However, the additional $1 million would be subject to penalties and interest if it is not paid by April 15.
    • In this theoretical situation, the taxpayer could request an abatement of penalties by the IRS on the additional $1 million due to “reasonable cause”. There is no way to know whether the IRS will grant or not grant the abatement. Regardless of this, the interest would generally not be abated.

The IRS also clarified that estimated tax payments due on April 15 are also covered under this deferred payment rule.

  • However, this proposes that the second estimated tax payment normally due on June 15 is not covered unless new information comes to light.
  • The Notice notes that an individual and certain trusts/estates can seek a penalty waiver for underestimation of tax from the Commissioner, because of casualty, disaster, or “other unusual circumstances”, where the imposition of the penalty would be against equity and good conscience.
    • The right to request a penalty waiver for underestimation of tax does not apply to corporations.

The right to defer payment of tax applies only to income taxes relating to the 2019 tax return. It does not apply to other taxes such as payroll tax, gift tax, or excise tax.

The Notice also makes it clear that the deferred payment rule does not extend the filing deadlines of the income tax return. Impacted taxpayers can request extensions of time to file under the normal regime.

At this point there are still many unknowns as this is a very fluid situation. We are monitoring it closely and will keep you updated as the information changes.

If you have any questions or concerns please do not hesitate to reach out as we are ready to answer any of your questions.

Stay healthy and be well,

WZ Partners

NYC Financial Assistance for Businesses Affected by COVID-19

March 18, 2020

Dear Valued Client,
If you are seeing a reduction in your business revenue because of the COVID-19, there are 2 different programs that a business can qualify under the SBA’s Economic Injury Disaster Loan Program.
1- NYC Employee Retention Grant Program
The City is offering small businesses with fewer than 5 employees a grant to cover 40% of payroll costs for two months to help retain employees.
In order to qualify under the NYC Employee Retention Grant Program, the business must meet the following additional requirements:

 Be located within the five boroughs of New York City
 Demonstrate that the COVID-19 outbreak caused at least a 25% decrease in revenue
 Employ 1-4 employees in total across all locations
 Have been in operation for at least 6 months
 Have no outstanding tax liens or legal judgements
2- NYC Small Business Continuity Fund
Businesses in NYC with 99 employees or fewer are eligible for zero interest loans up to $75k to mitigate losses.
In order to qualify under the NYC Small Business Continuity Fund the business must also meet the following additional requirements:
 Be located within the five boroughs of New York City
 Demonstrate that the COVID-19 outbreak caused at least a 25% decrease in revenue
 Demonstrate ability to repay the loan
 Have no outstanding tax liens or legal judgements
As part of the applications, you will be required to demonstrate a revenue decrease by providing documentation such as: point-of-sales reports, bank statements, quarterly sales tax filings, 2019 tax returns, or CPA-certified profit & loss statements. If you qualify under either of the two programs, we highly encourage that you submit an online application using this link

Official press release link HERE

More information about the programs on the NYC official website HERE

As always, the Partners and WZ team remain committed to helping you, your families and your business through these unknown and stressful times.