COVID-19 Update May 3, 2021

With Q1 behind us, the team here at Delta is setting our sights on clients’ 2020 amended tax returns for ERTC. If you’re a client and believe you may be eligible, kindly note that the deadline for the 2020 amendments is May 10^th as we will be filing on May 17^th. Additionally, those looking to claim ERTC for the first quarter of 2021 should note that the deadline to make elections is May 19^th as they too will be filed by the end of the month.

Furthermore, Delta must receive a signed attestation for each quarter that your company is eligible. If you have any questions, please don’t hesitate to give us a call and ask for India or David.

The IRS has created a safe harbor for small businesses that received first-round Paycheck Protection Program (PPP) loans but did not deduct certain expenses because they relied on guidance issued before the enactment of the Consolidated Appropriations Act, 2021, in December 2020. The safe harbor provides relief to PPP loan recipients who filed their 2020 tax returns without deducting business expenses paid with funds from PPP loans.

In the latest pandemic news, most employers are encouraging employees to get COVID-19 vaccinations, while some organizations are requiring it. The legal risks of this mandate are emerging, but employers are standing their ground. The federal government’s expanded unemployment insurance benefits has led to an uptick in fraudulent claims, according to the U.S. Department of Labor (DOL). Read here about the steps you could take to help identify and prevent such fraud.

Lastly, President Biden’s imminent executive order requiring federal contractors to pay a $15 hourly minimum wage could put pressure on private sector employers to raise low-income workers’ pay. The executive order will require all federal agencies to incorporate a $15 minimum wage into new contract solicitations by January 2022 and into newly signed contracts by March 2022. The minimum hourly rate will then rise annually to keep pace with inflation.