COVID Relief for Kansas Businesses

To all of our Kansas business clients impacted by COVID – which is pretty much everyone – we wanted to highlight a Kansas program that is available beginning tomorrow, August 19th. There is a “Small Business Working Capital Grants” program that will award grants to companies until funds are depleted.

ELIGIBILITY REQUIREMENTS

  • Must be a for-profit or not-for-profit business owned and/or operated in the state of Kansas.

  • Business must have 500 or fewer employees.

  • Business must have been in operation since July 1, 2019.

  • Business must be in good standing with the Kansas Secretary of State.

  • Business must be able to demonstrate a loss of at least 25% of gross revenues from January 1, 2020-June 30, 2020, over the previous period of January 1, 2019-June 30, 2019. *If a business was not in operation Jan. 1-June 30, 2019, revenues from July 1-Dec. 31, 2019 can/should be used.

  • Business plans to use all awarded funds exclusively for working capital expenses and can articulate how the funds will be used.

  • The business must not have received more than $350,000 in prior COVID-related local, state and/or federal funding.

  • Awarded funds may not be used to duplicate any expenses paid for by previous local, state or federal CARES Act funding programs.

AWARD AMOUNTS & NOTIFICATION

  • Maximum award amounts will vary by business activity. While businesses may request the maximum grant amount for their category, there is no guarantee the maximum amount will be received.

  • Award determinations will be made on a number of factors including business activity type, number of employees, lost revenue due to COVID-19, future plans for business resiliency, etc.

  • Grants will be awarded on a rolling basis until funds have been depleted.

  • A formal grant agreement will be required prior to any funds being awarded.

The link to the application is below:

https://kansasdepartmentofcommerce.formstack.com/forms/small_business_working_capital

Payroll Tax Holiday

President Trump signed an Executive Order for a payroll tax holiday to begin September 1st and run through December 31st. Guidance is still being sought on this order, but a summary is listed below:

  • “Payroll taxes” are the Social Security and Medicare taxes paid on wages and self-employment income. The executive order delays the withholding and payment of the employee Social Security portion only. That amounts to 6.2% on the first $137,700 in wages.

  • The order is written for this to be a delay and not a permanent holiday, so those taxes that are delayed and not paid in during this time period would need to be withheld/paid at a later time. Timing for repayment is not clear.

  • It is unclear if employers are required to participate. We believe the intent of the order is for it to be mandatory participation in the tax holiday.

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    Cornerstone CPA Group, LLC

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    Overland Park, Kansas 66212

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