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The Coronavirus Aid, Relief, and Economic Security (CARES) Act allows taxpayers to defer paying the employer portion of Social Security taxes through the end of 2020, with all 2020 deferred amounts due in two equal installments, one at the end of 2021, the other at the end of 2022: Employers can defer payment for the employer portion of payroll taxes incurred between the date the CARES Act is enacted, March 27, 2020 through December 31, 2020. If deferred, the employer would instead pay 50% of this amount by December 31, 2021, and the remaining 50% by December 31, 2022.  The eligible payroll taxes are the employer’s portion of Social Security taxes (6.2%). Payroll taxes are shouldered by workers and employers: Each pays 6.2% toward Social Security and 1.45% toward Medicare. Employers are still on the hook for paying the 1.45% of wages that goes toward funding […]

The CARES Act Section 2301 creates a new employee retention credit (the Retention Credit) for wages paid from March 13, 2020 to December 31, 2020, by employers that are subject to closure or significant economic downturn due to COVID-19. The credit amount takes into account up to 50% of qualified wages, up to $10,000. Thus, the maximum Retention Credit amount is $5,000 per employee. The Retention Credit applies to: The employer’s share of Social Security tax under IRC Section 3111(a) (6.2% of wages) The portion of the employer’s and employee representative’s share of RRTA tax under IRC Sections 3211(a) and 3221(a) that corresponds to the 6.2% Social Security tax rate due Qualified wages for employers with 100 or fewer employees qualify for the entire credit. To be eligible for the Retention Credit an employer must carry on a trade or […]

You may be worried about how this pandemic will affect the finances of your funeral home and what steps you should be taking to address the business impact of COVID-19. Foresight’s Dan Isard participating in a round table discussion sponsored by The International Order of the Golden Rule. This discussion provided information on what you need to know now so that you can make the best business decisions during this time of economic uncertainty. Listen to the recording below to hear about various topics including: Conserving cash during the COVID-19 pandemic (Hint: It has to do with the bills you usually pay) Prepare to borrow money, possibly through the SBA’s Economic Injury Disaster Loan Program Steps to take to protect your staff financially Getting the right messaging out to your families and community How the way you handle funeral services […]

As a result of the COVID-19 pandemic, we have created a document to serve as a template for funeral homes to use to develop an emergency action plan in light of the recent outbreak of COVID-19 (the Coronavirus). But it should also be useful in anticipation of future outbreaks of any infectious disease including the seasonal flu. Certain state or local laws, ordinances, and orders must be taken into consideration of course, so this template, in order to be used in various jurisdictions, must be generic. Therefore, it is meant to simply be a guide for you to develop your own plan. You should have a plan in place that also considers other possible disaster situations such as hurricanes, tornadoes, and floods. It should also contain plans in the event of a fire in your facility, an active shooter situation, […]

To ease the burden and assist small business owners and their employees during the COVID-19 pandemic, emergency legislation has been signed into law.  Here are some highlights of the new law.  Overview of the Law: The Families First Coronavirus Response Act (FFCRA) is effective as of April 1, 2020. It includes amendments to the current FMLA (Family and Medical Leave Act) and stipulates requirements for paid sick leave. Employers covered by the FFCRA Emergency Paid FMLA (Family and Medical Leave Act) and paid sick leave will be responsible for paying out the costs themselves and will be reimbursed through certain tax credits, which may not happen until 2021.  FMLA Provision: FMLA is calculated based on the number of hours the leave-taking employee would normally be scheduled to work. This cannot be less than two-thirds the employee’s regular rate of pay. The amount […]