(Updated 3/23/2020 at 1:33 pm)

COVID-19 is having a dramatic impact on our lives and businesses.

We want to share an update on what Kallas is doing to keep our customers and our people safe while continuing to provide necessary accounting and payroll assistance to our clients.  

Please continue to send your bookkeeping to Kallas as usual. Mail, fax and e-mail are still on and working. 

Per the “Stay At Home” order issued by Gov. Whitmer on March 23, 2020, Kallas must temporarily reduce staff to critical infrastructure only. The phones will be on during normal business hours but only one or two people will be in at any time to provide critical support. Please be patient.

Kallas is following the guidance of global health experts at the World Health Organization (WHO) and U.S. Centers for Disease Control (CDC) on preventing the spread of the COVID-19 virus. We are reminding employees of the importance of:

• Washing hands often with soap and warm water for at least 20 seconds.
• Avoiding touching your eyes, nose, and mouth.
• Cleaning things that are frequently touched (like doorknobs and countertops) with household cleaning spray or wipes.
• Covering coughs and sneezes with a tissue or the inside of the elbow.
• Staying home when feeling sick.

Thank you for trusting us with your business.

(Updated 4/1/2020 at 4:12 pm)

7. START NOW with an application for the direct SBA EIDL loan. This loan offers an immediate $10,000 advance and any remaining loan can be rolled over into the forgivable PPP loan later. This will help you pay bills including payroll during shut down or partial shutdown and some or all of it may be forgiven. We are recommending to borrow the maximum amount now. If it turns out you do not need the money just pay it back. Repayment can be deferred up to 12 months.

8. If you do not want to prepare the application yourself, call the bank you do business with or our recommended SBA loan experts at Independence Business Consulting (IBA) at 248—924-2410.

9. Once the application is completed, request a $10,000 advance on the loan. SBA is supposed to cut you a check within 3 days.

10. As business picks up, start calling back employees to work.

11. As you re-start business and add payroll again, the new CARES Act has a provision to help your cash flow immediately. There is a provision to allow you to delay paying a certain portion of your payroll taxes for over one year. We are waiting for those rules to be issued and will let you know as soon as they are.

(Updated 4/22/2020 at 3:05 pm)

The PPP money is finally reaching restaurant owners. If you have not received your PPP money, and you previously applied, check the status with your bank or other agents.

There are rules on how you can spend this money and how much of it is forgivable.

Understand that the money you receive is initially a loan. The terms are 1%, 2-year payback starting 6 months after receiving it. If you spend the money at least 75% for payroll and the remainder on other items such as rent, utilities, and interest on business or mortgage notes over the 8 week period after receiving the funds, then it becomes forgivable.

Also, please understand that the rules have been constantly changing so what we are advising now could change. Kallas will send e-mail updates as more information becomes available.

To put you in the best position possible for forgiveness, we suggest you do the following:

1.      Either open a separate checking account for this money or you can deposit it into a payroll account if you already have one.

2.      Your goal should not be to spend all the proceeds thinking that everything is forgiven. Likely, a portion of the PPP money will not be forgiven.

3.      Start spending it only on payroll. Your goal is to get your employee count up to pre-crisis levels and spend at least 75% of the proceeds for payroll costs. You lose forgiveness if your employee count goes down from the prior year and if you pay individuals a rate less than they earned pre-crisis.

4.      You can hire new employees, you can pay an employee tips and you can pay bonus incentives as part of the payroll

5.      You will lose forgiveness if you pay any one individual over $1,900 per week or $15,200 to any one individual in the 8 week period.

6.      You can pay state unemployment with the funds.

7.      As the rules are written now, if you spend more than 75% of the funds for payroll and you get your employee count up to pre-crisis levels the more likely the whole amount will be forgiven.

8.      Our advice is to cover payroll costs first. Then pay back rent, (going back to Feb 15) utilities and interest on loans in effect prior to Feb 15, 2020.

9.      Any amounts not forgiven can be returned with no penalty or converted to a loan.

We are aware that because Michigan is still in quarantine, trying to bring payroll up to pre-crisis levels is almost impossible. We urge you to call or email your representatives to change the 8 weeks requirements. In the meantime, we recommend you hold the funds for now until there is more guidance or pay any payroll you have now.

We also urge you to contact your representatives regarding the forgiveness formula. It is too complicated, and could result in an unpleasant surprise for many small business owners when they least can afford it.

Contact your state and federal Congress people and tell them the PPP money is wasted unless they 1) extend the 8 weeks to spend PPP money and 2) make the formula for forgiveness easier.

Kallas will keep you posted via e-mails.

(Updated 4/23/2020 at 11:47 am)

• Personal, partnership and corporation federal tax returns do not have to be filed until July 15, 2020.
• The deadlines to FILE and PAY federal & Michigan income taxes are extended to July 15, 2020. This includes first and second quarter estimated tax payments normally due April 15 and June 15.
• February and March sales tax payments are delayed until May 20.
• As of today, all payroll taxes are still due on their regular due dates.
• Continue to send your payroll & bookkeeping to Kallas as usual.

(Updated 3/23/2020 at 1:33 pm)

(Updated 3/23/2020 at 1:33 pm)

(Updated 4/1/2020 at 4:33 pm)

2. The process is very slow. Expect 3-4 hours at least. Be patient. It is working.
3. Try doing it during non-business hours when it is not so busy.
4. Hit the save button often.
5. You must register first. The register button Is at the top of the first page.
6. You might want to have someone help you who is computer savvy.

(Updated 3/23/2020 at 1:33 pm)

Michigan Economic Development Corporation has compiled information and resources for small businesses, major employers, entrepreneurs and others regarding our response to the economic impact of COVID-19. Please visit their COVID-19 resource page for more information.

The Michigan Small Business Relief Program will provide up to $20 million in support for small businesses negatively impacted by COVID-19. The funding is divided between $10 million in small business grants and $10 million in small business loans to support businesses facing drastic reductions in cash flow and the continued support of their workforce. Funds for the program are expected to be available no later than April 1, 2020.

Provide small business loans to businesses immediately impacted by COVID-19. Funds for the program are expected to be available no later than April 1, 2020. Additional details on how to apply will be forthcoming. 

(Updated 3/27/2020 at 8:49am)

(Updated 3/23/2020 at 1:33 pm)