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Ohio Gov. Mike DeWine signed Senate Bill 18 into law, which ensures that expenses paid with forgiven Paycheck Protection Plan loans become deductible for state income tax purposes.

The legislation, which was supported by the Ohio Society of CPAs (OSCPA) will conform tax laws in the Buckeye State with recent changes to federal tax law, including deductibility of expenses from the Paycheck Protection Program and excluding $10,200 in unemployment compensation from income tax.

On Thursday, the Senate voted to extend the Paycheck Protection Program for two months.

A week before the Small Business Administration’s PPP was slated to expire, senators voted 92 to 7 to pass the PPP Extension Act of 2021.

Not only does the legislation extend the program to May 31 from the initial March 31 deadline, but it gives the SBA an additional 30 days to process loans.

The American Institute of Certified Public Accountants recently asked Congress to extend the Paycheck Protection Program’s March 31 application deadline at least 60 days. Additionally, the AICPA also asked the IRS and the Department of the Treasury to extend the April 15 tax filing and payment deadline to June 15.

The second round of Paycheck Protection Program funding has been open for two weeks and it appears funds are going to the intended recipients. 

The Employee Retention Credit is part of the reconstituted Paycheck Protection Program and is designed to help businesses who have been adversely affected by the COVID-19 pandemic retain their employees.

Bloomberg News recently reported that according to a new survey, at least one in ten small businesses in the U.S. are expecting to lay off workers once their fiscal relief funds run out.

In another survey done by the National Federation of Independent Business, 14 percent of companies, who received a loan under the Paycheck Protection Program, anticipate having to reduce their workforce after using the loan. Among those companies, half expect to dismiss one to two employees, and 12 percent say they will likely lay off at least ten people.