On January 15, 2021 the US Department of Health and Human Services released updated guidance on the PRF reporting requirements. Get an outline on what has changed since their last communication on November 2, 2020.

The Consolidated Appropriations Act (CAA) was signed into law on December 27, 2020, as part of that law the Employee Retention Credit has been extended and expanded for the first two quarters in 2021. The credit will increase from 50% to 70% and can now be utilized by organizations who have also received a PPP loan to the extent that wages paid with PPP loan proceeds are not used when calculating the credit.

• The Families First Coronavirus Response Act (FFCRA) paid emergency sick and childcare leave and related tax credits are extended through March 31, 2021. The leave is no longer mandatory, but employers that provide FFCRA leave during the first quarter in 2021 may take a federal tax credit.
• The CARES Act permits up to $5,250 in tax-free student loan repayment benefits. This provision has been extended through December 31, 2025. Organizations who offer student loan repayment assistance programs can help employees with their student loan debt and attract, recruit, and retain talented employees.

The Consolidated Appropriations Act (CAA) amended the guidance for the existing PPP and includes an additional $284 billion for a new round of Paycheck Protection Program (PPP) loans. Organizations may be eligible for PPP funding whether or not they received a loan in the first round. The parameters of the PPP have been expanded so that the uses of the funds allowed for forgiveness of the loan can now cover more expenses.

For organizations that received federal funding to assist them during the COVID-19 pandemic, there have been some updates on Uniform Guidance. Here is a brief summary of those updates, audit threshold, federal funds subject to that threshold, and other pertinent information regarding the guidance.

May 25, 2021

Join BerryDunn experts and your peers for a discussion of the current not-for-profit landscape, new and ongoing challenges of working in a remote environment, and the tax and financial reporting outlook for the next year. Together, we will prepare for the future.