The knowledge you need

he COVID-19 pandemic has created disruption across the economy impacting businesses in every industry. It started in March with forced business closures and stay at home orders and has continued with modified operating rules issued by the state and Centers for Disease Control (CDC). While necessary to protect public health, it has resulted in one of the most challenging business climates in decades. Although each industry has been impacted differently, construction has not been immune to the fallout.

On October 8, 2020, Treasury issued a new Interim Final Rule (IFR) which introduced a Simpler Loan Forgiveness Application for borrowers with loans less than $50,000. The purpose of the change is to make the application and loan review process faster and result in the timely issuance of forgiveness funds. In addition, the IFR also provides an exemption in the forgiveness amount resulting from reductions in full-time equivalent (FTE) employees and salary/wages.

Over the past few years, there has been a renewed focus by the IRS and Department of Labor (DOL) on worker classification. Atlanta employers have the option of classifying a worker as either an employee or an independent contractor depending on a number of factors. While a background detail to those working for the company, in either capacity, there are tax ramifications for the business depending on classification.

It can be difficult to find a silver lining in a year when so much has happened, often unwelcome, due to the COVID-19 pandemic. Many Atlanta businesses fought hard to survive the forced business closures, stay at home orders, and changing consumer behavior due to transmission fears. Now, more than ever, maintaining positive cash flow and working capital rank amongst the highest concerns. With this in mind, businesses are leveraging every option which includes exploring tax-saving opportunities. The good news is there are many new and expanded tax incentives available including bonus depreciation. Since the Tax Cuts and Jobs Act (TCJA) extended it through 2023, taxpayers have been waiting for the final rule and additional guidance.

The COVID-19 pandemic caught many businesses by complete surprise when stay at home orders and forced business closures were announced.  Main street businesses and larger companies were required to reduce operations, modify service offerings, or completely close. The aftershock of these changes resulted in some organizations going out of business while others had to drastically cut expenses, including employees, to maintain financial solvency. Six months later it appears the situation is turning around. In fact, it was recently announced that in August there were $642M in new investments across the state including the creation of 4,036 new jobs. As the shift to recovery continues, many Atlanta businesses are looking for ways to bolster working capital to meet expenses and make new strategic investments.

As plan sponsors are quickly approaching the October 15th filing deadline the focus is on taking care of last-minute details with the plan auditor. Ensuring all questions are answered and any last-minute information is provided is essential in the final weeks. Once the deadline passes, plan sponsors will then focus on ensuring compliance with the changes mandated in the SECURE and CARES Act by the end of the year.

Stay-at-home orders and supply chain disruptions resulting from the COVID-19 pandemic were two of the biggest changes impacting the construction industry this year. The trickle-down effect as states have fully reopened is that projects are now being approached very differently particularly when it comes to bidding

The COVID-19 pandemic has had a significant impact on businesses in Atlanta and across Georgia. From the initial forced business closures to new operating guidelines many have had to be flexible and creative to maintain profitability. These rules have not only impacted how businesses serve customers, but also how a safe workplace is developed and maintained. A central theme that is woven into the regulations is a concern for the health and safety of all those involved. To facilitate this personal protective equipment (PPE) which includes facemasks, face shields, eye protection, and gloves have used. As demand for these items has sharply increased, more businesses are shifting operations to focus on the production of PPE. The good news for companies that have made the transition is that Georgia now offers a PPE Manufacturing Tax Credit.

Many are unaware of this, but Georgia is known as the Hollywood of the South because of all the film productions which choose the state as the location of choice. In fact, according to the Georgia Department of Economic Development, there was a new record set last year with 399 productions filmed representing a $2.9B infusion to the state economy.

The SECURE Act implemented in late 2019 and the CARES Act which passed earlier this year outlined several changes to how retirement plans are required to operate. While adoption of certain changes is optional, others are not, requiring the plan sponsor to make plan document amendments.