Hiring and Growth

January 29, 2021: Deadline—Distribute W-2s to Your Team by Monday, Feb. 1

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January 29, 2021

You’re reading Gusto’s COVID-19 newsletter for small businesses. If you’d like these weekly updates in your inbox, you can subscribe here. New to Gusto? Try a free demo today.

PPP loan calculators

One thing we consistently hear from small business owners applying for Paycheck Protection Program (PPP) loans is how tricky it can be to figure out what loan amount to put on their applications. It can be complicated: Depending on your type of business, number of employees, and the different ways you compensate them, you’ll probably need to do some math to figure out the correct amount you’re eligible for. 

We created a PPP Loan Calculator to help. Drop your information into our spreadsheet tool, and it’ll help you figure out a) what your payroll costs are and b) based on that, how much PPP funding you can borrow.

Speaking of handy calculators, we also recently published a comprehensive guide on how to apply for a second-draw PPP loan, including how to calculate whether you meet the 25% revenue reduction. You’re welcome.

Download both tools on our blog:

Community Advantage program

While the PPP has been a lifeline for many small businesses, we can’t ignore the communities it has left out. A Center for Responsible Lending report revealed that the PPP did not offer guidance to lenders about prioritizing borrowers in underserved and rural markets. Luckily, other programs are designed to bridge the gap. 

The SBA Community Advantage (CA) program aims to help small businesses in underserved or low-income areas access 7(a) loans. CA loans have many of the same application requirements as traditional 7(a) loans, but they are particularly targeted toward businesses in low-income areas and rural towns that have been operating for less than three years and do not qualify for traditional financing elsewhere. 

Bonus: It’s part of the SBA program, so while the loan won’t be forgiven, the SBA will cover at least six months of principle and interest payments for loans approved between February 1 and September 30, 2021.

Learn more about CA loans here.

W-2 deadline

Employers are required to distribute Form W-2s to their employees each year by the end of January–for 2021, the deadline is Monday, February 1. If you haven’t already, verify that all your employee information appears accurate, and distribute the forms to your team either by mail or electronically. 

One extra detail to be aware of this year is that the IRS has issued specific requirements for how employers should report wages paid for emergency paid sick and family leave under the Families First Coronavirus Response Act (FFCRA). Pay for FFCRA wages should be reported separately on Box 14 of the W-2, or on a separate statement provided alongside the regular W-2. If applicable, ensure you follow the IRS’s instructions here.

If you’re a Gusto customer, Gusto sends all of the required federal, state, and local filings of Forms W-2 directly to tax agencies on your behalf. Check out our guide to distributing W-2s to your team in-app.

Watchlist

How To Achieve Permanent Profitability Within The Next 24 Hours

On Tuesday, February 23, at 10am PT | 1pm ET, learn how to master the Profit First methodology to drive permanent profit in your business. Join our conversation with Mike Michalowicz, the author of Profit First, and Cyndi Thomason, President at Bookskeep, as they unpack profitability best practices for your small business. 

Register here.

ICYMI: What You Need to Know About PPP Round 2: Applications, Forgiveness, and Tax Implications

Earlier this week we teamed up with our partners at Bench for a live event covering PPP borrowers’ biggest questions. Watch the replay for info on how to apply for first- and second-draw loans, what’s new with forgiveness, and how PPP will affect your taxes this upcoming filing season.

Watch here.

ICYMI: A Discussion on the Employee Retention Tax Credit with Rep. Stephanie Murphy

Rep. Stephanie Murphy was the first member of Congress to recommend an updated version of the employee retention tax credit (ERC) and was crucial in its inclusion in the CARES Act. Watch a recap of Gusto’s discussion with her, plus a helpful FAQ on the ERC.

Watch here.

Top relief options for the week

  • Philadelphia COVID-19 Restaurant and Gym Relief Program (RGRP) is designed to provide financial relief to small businesses located in Philadelphia that have been adversely affected by the latest round of pandemic-related restrictions. Eligible businesses are limited to restaurants with indoor dining, gyms, and businesses whose primary activity is indoor exercise. Grant awards are estimated to be up to $15,000 per business.
  • Palatine, Illinois is opening applications for a small business grant program on Monday, February 1, 2021. Grants will be first-come, first-served for local businesses and amount up to $10,000. 
  • City of Benton, Kentucky is now accepting applications for its Small Business Relief Grant program. Grants of up to $2,000 will be available for small businesses within the city limits of Benton.
  • See more relief options in our Small Business Relief Finder.

Want more small business news and resources? Check out past editions in our archive.

Updated: April 30, 2021

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