April 2, 2021
Back in business
A new Gartner survey of 200+ HR leaders sheds light on employers’ reopening plans. Almost half (45%) of respondents said they plan to reopen their business in Q3 2021, and nearly a quarter (24%) plan to reopen in Q4.
Gartner found that many organizations are planning for increased remote work, and very few (8%) said they will require employees to show proof of vaccination. Read more insights in the full report.
Are you preparing to reopen your business in the coming months? Tell us your story here, and we may feature it in an upcoming edition of this newsletter.
PPP: Last call
On Tuesday, a day before the Paycheck Protection Program (PPP) application deadline, President Biden signed a law extending the application period until May 31, 2021—but this may be the last of the program.
“The latest trend line has about $79 billion of program level left, which puts us on pace for… somewhere around mid- to late-April in terms of funds being potentially all used up,” Patrick Kelley of the Small Business Administration (SBA) said in a Senate small business hearing on relief programs last Wednesday.
Should the remaining funds run out as expected by the end of April, due to waning demand, Gusto’s legal experts believe it’s unlikely PPP will get another allocation of funds.
Remember, a PPP loan can mean forgivable funding for your team and business, and several updates have been made to the program so it better suits business owners’ needs. If your business is eligible, a Gusto lending partner can guide you through the application process.
SMB Tax Credit Series, Part 1: Work Opportunity Tax Credit
As we’ve mentioned previously, the IRS has recently extended the deadline for 2020 tax returns to May 17, 2021. In the run up to Tax Day, we’ll be highlighting some of the most helpful COVID-19 tax credits for small businesses each week.
First up is the Work Opportunity Tax Credit (WOTC). This credit encourages employers to hire workers in certain groups who may struggle to find work. According to the Department of Labor (DOL), over $1 billion in WOTC tax credits are claimed each year.
How much is the credit for? Companies who hire qualifying employees can earn between $2,400 and $9,600 per employee.
How long do you have to claim it? The WOTC has been extended through the end of 2025.
Interested in claiming the WOTC? Learn more here.
Tune back in next week for another tax credit spotlight, and visit our blog for a full list of COVID-19 tax credits.
Did you know Gusto hosts an online show with small business and accounting news every other week? This week our On the Margins Live hosts, Caleb Newquist and Will Lopez, discussed the IRS’s tax deadline extension and dropped wisdom and learnings from last year’s modified tax season.
Watch the playback here, and catch new episodes of On the Margins Live every other Tuesday on Gusto’s YouTube channel.
Picks from our partners
Our partners at IFundWomen have teamed up with Neutrogena® to give women-owned businesses in the health and wellness space a fresh start in 2021. The program will provide 10 qualified women entrepreneurs across the US with $10,000 grants to support their fresh start after a challenging year in business. Applications are open through April 26.
Find the latest relief options in our Small Business Relief Finder.
Want more small business news and resources? Check out past editions in our archive.