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  • PPP Round 2 Funding Insights for Your Farming Operation

    The Economic Aid Act of 2021, signed into law on December 27, 2020, made changes to the original Paycheck Protection Program, “PPP” and added another round of funding, PPP Round 2. We are writing you to provide guidance on how the changes may impact your farming operation. The changes in the Economic Aid Act of 2021 made funding more accessible for farming operations that file their taxes on a Schedule F 1040. Previously, operations did not qualify for PPP Round 1 funding if they did not have payroll and did not show a net profit (line 34) on their Schedule F. Operations that did not receive PPP Round 1 funding can now apply for funding using the following calculations: Schedule F 1040 Farmers with no employees: o Step 1: Find Schedule F Line 9, Gross Income – If this amount is over $100,000, reduce it to $100,000. o Step 2: Divide the amount from Step 1 by 12. o Step 3: Multiply the amount from Step 2 by 2.5. Example: If the Schedule F Line 9 Gross income is over $100,000, the calculated loan is $20,833. Schedule F 1040 Farmers with employees: o Step 1: Find Schedule F Line 9, Gross Income – If this amount is over $100,000, reduce it to $100,000. o Step 2: Sum Lines 15, 22, and 23 – these lines represent the farm’s payroll costs. o Step 3: Add amounts from Step 1 and Step 2 together. o Step 4: Divide amount from Step 3 by 12. o Step 5: Multiply the amount from Step 4 by 2.5. Example: Schedule F Line 9 over $100,000. Lines 15,22, and 23 add up to $24,000. The calculated PPP loan is $25,833. If a 1040 Schedule F farm received a PPP Round 1 loan less than the maximum amount allowed based on the calculation above, they may request a recalculation of their loan based upon gross income with the original lender to receive an increased loan amount if forgiveness has not been already granted. No changes were made to the calculation for farming operations that file a 1065 (Partnership), 1120S (S-Corporation), or 1120C (C-Corporation) for PPP Round 1 or Round 2. PPP Round 2: · To qualify for PPP Round 2, borrowers must have received PPP Round 1 and demonstrate that they have or will expend all PPP Round 1 funds. A PPP Round 1 loan does not require forgiveness prior to applying and receiving PPP Round 2. · Borrowers must demonstrate a reduction in revenues of 25% in any quarter of 2020 compared to the corresponding quarter in 2019. · If your operation now qualifies for PPP round 1 based on the changes outlined above, you may be able to also qualify for PPP Round 2 if you can demonstrate the reduction in revenue. · If the above qualifications are met, 1040 Schedule F farmers will use the same calculations outlined on page 1. 1065 (Partnerships), 1120S (S-Corporations), and 1120C (C-Corporations) will use the same calculations they used for PPP Round 1. Borrowers must make several certifications as part of the application. One certification states “Current economic uncertainty makes this loan request necessary to support ongoing operations of the Applicant.” This is a certification we want to highlight, but it is one you as the borrower must make. Steps to move forward in the process: · If you did not receive any PPP Round 1 funding and believe you now qualify or are eligible for an increased amount, contact your lender. · Gather and summarize gross income by quarter for 2020 and 2019 and determine if you meet the 25% reduction in gross income. If there is a 25% reduction in revenue, contact your lender. We are here to help and look forward to serving your operation. If you need further assistance or have questions, please reach out to your trusted advisor at ELO. With Respect and Appreciation, ELO CPAs & Advisors PPP Applications can be found at www.sba.gov. PPP Round 1 - https://www.sba.gov/document/sba-form-2483-ppp-first-draw-borrower-application-form PPP Round 2 – https://www.sba.gov/document/sba-form-2483-sd-ppp-second-draw-borrower-application-form

  • 1099/W-2 Filing Deadline is Approaching Fast

    Copies of 1099s & W-2s must be mailed to recipients by January 31st. Complete information is due to ELO by this Friday, January 22nd or we cannot guarantee timely filing of year-end forms, you are responsible for any and all late penalties. NEW! Form 1099-NEC has replaced Box 7 on Form 1099-MISC for reporting non-employee compensation. 1099-NEC is due to the IRS by January 31st. Forms can be submitted online at www.elocpa.com > Resources > 1099 Online Form or W2 Online Form Do not hesitate to contact the CAS team at ELO CPAs & Advisors immediately with questions related to your 1099s and W-2s. Information submitted after January 22nd is subject to expediting fees to ensure filing by January 31st.

  • SBA and Treasury reopen Paycheck Protection Program

    The U.S. Small Business Administration and the Treasury Department relaunched the Paycheck Protection Program on Monday to new borrowers, prioritizing loans from community lenders. The program, funded with $284.5 billion thanks to the latest stimulus package passed by Congress late last month, opened Monday to so-called “first draw” PPP loans for those small businesses who didn’t take advantage of the program last year. “Second draw” PPP loans will be available starting Wednesday. Initially only community financial institutions will be able to make the first-draw and second-draw loans, but the SBA and the Treasury said Friday that the program would be open to other lenders shortly thereafter. The goal is to increase the availability of loans to small businesses. When the program originally launched last year with the CARES Act, much of the money that was supposed to go to small businesses instead went to large companies who had existing relationships with large banks and the funds were quickly exhausted until Congress appropriated more money. The program will be open through March 31. Under the latest stimulus legislation, businesses can now write off expenses associated with seeking loan forgiveness, and the IRS released guidance last week to allow that, reversing its previous guidance (see story). The SBA also released updated PPP guidance outlining other changes to the program to improve its effectiveness and accessibility last week in accordance with the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act, which was part of the overall stimulus and appropriations package. “The historically successful Paycheck Protection Program served as an economic lifeline to millions of small businesses and their employees when they needed it most,” said SBA Administrator Jovita Carranza in a statement Friday. “Today’s guidance builds on the success of the program and adapts to the changing needs of small business owners by providing targeted relief and a simpler forgiveness process to ensure their path to recovery.” Some of the main updates to the program include: PPP borrowers can set their PPP loan’s covered period to be any length between eight and 24 weeks to best meet their business needs. PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs and worker protection expenditures. PPP eligibility has expanded to include 501(c)(6)s, housing cooperatives, destination marketing organizations, along with other kinds of organizations. The PPP now offers more flexibility for seasonal employees. Some existing PPP borrowers can request to modify their first-draw PPP loan amount. Some existing PPP borrowers are now eligible to apply for a second-draw PPP loan. A borrower is generally eligible for a second draw PPP loan if the borrower: Previously received a first-draw PPP loan and will or has used the full amount only for authorized uses; Has no more than 300 employees; and Can demonstrate at least a 25 percent reduction in gross receipts between comparable quarters in 2019 and 2020. “The Paycheck Protection Program has successfully provided 5.2 million loans worth $525 billion to America’s small businesses, supporting more than 51 million jobs,” said Treasury Secretary Steven T. Mnuchin in a statement. “This updated guidance enhances the PPP’s targeted relief to small businesses most impacted by COVID-19. We are committed to implementing this round of PPP quickly to continue supporting American small businesses and their workers.” The new guidance released Friday includes: PPP Guidance from SBA Administrator Carranza on Accessing Capital for Minority, Underserved, Veteran, and Women-owned Business Concerns; Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act; and Interim Final Rule on Second Draw PPP Loans. Other new guidance released last week includes: Top-Line Overview of First Draw PPP Loans Top-Line Overview of Second Draw PPP Loans Procedural Notice – Modifications to SBA Forms 3506, 3507 and 750 CA (PPP only) Procedural Notice - SBA Procedural Notice on Repeal of EIDL Advance Deduction Requirement Forms were also released, including Form 2483 – Paycheck Protection Program Borrower Application Form and Form 2483-SD – PPP Second Draw Borrower Application Form. Michael Cohn Editor-In-Chief, AccountingToday.Com

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  • Accounting Services | ELO CPAs & Advisors | South Dakota

    Helping You Succeed Everyday We are the trusted Advisors that businesses and professionals from Texas to North Dakota and Colorado to Minnesota, even in Hawaii, want as partners to assist them with business consulting, tax, client accounting services, auditing and wealth management. Working Together. Finding Solutions. At ELO CPAs & Advisors, we believe when we work side-by-side with our clients as partners, we can find solutions to the most challenging issues together. OUR SERVICES What Our Clients Are Saying "Just like any other business, it is all about relationships and what you can do for me. ELO has done a great job of building that relationship of trust and offering many services to me and my businesses on top of that. ELO has earned my trust, and they provide great advice and I value that advice deeply." Terry Wieting, Managing Partner, Max Nutrition, LLC & Dak Pak, LLC "There is probably nothing that ELO has not seen or handled when it comes to Accounting & Auditing. Their broad spectrum of knowledge and speed of service is unmatched. When we need them, they can provide the support quickly and accurately which is important with our diverse and ever-changing businesses." Kevin Johnson, Managing Partner KAJ Hospitality "ELO sets themselves apart from other accounting services through their professionalism, integrity and openness. They are always willing to sit down and explain their work and provide guidance on how to maintain the financial health of our agency. They have earned our trust and business by consistently and efficiently producing high quality work that is accurate and organized." Sarah Shoffner, Executive Director Family Services, Inc. Current Insights VIEW ALL ELO CPAs & Advisors Jan 19 3 min PPP Round 2 Funding Insights for Your Farming Operation 3,567 views Write a comment ELO CPAs & Advisors Jan 19 1 min 1099/W-2 Filing Deadline is Approaching Fast 52 views Write a comment ELO CPAs & Advisors Jan 12 3 min SBA and Treasury reopen Paycheck Protection Program 38 views Write a comment ELO CPAs & Advisors Dec 7, 2020 1 min COVID-19: IRS Issues Guidance on Forgiven PPP Loans; Congress Reacts 62 views Write a comment 1 Stay Informed Get the latest industry insights sent right to your inbox! SIGN UP Our Team ELO CPAs & Advisors has served the region for over 30 years and has develop one of the finest reputations in the industry. What has made us successful is our staff of over 70 hardworking professionals. We work every day to provide expert knowledge and unmatched service from professionals that have sat in the same chair as, or alongside of, our clients for decades. That sets us apart from all the other firms in the region. MEET THE TEAM JOIN OUR TEAM

  • Services | ELO CPAs & Advisors | South Dakota

    SERVICES Experienced, knowledgable & the right resources to serve you. ELO provides the highest-level of professional business services with expertise in a variety of industries. We work hard to understand you and your company’s goals, challenges and opportunities to deliver creative solutions, solid financial management and planning guidance to help you find the success you seek. How Can We Help You? BUSINESS TAX Business Tax Agri-Business Tax Individual Tax Tax Credits & Incentives Estate & Trusts Sales & Use Tax AUDIT & ASSURANCE ​​​​​ Full-Scale Reviews Agreed Upon Procedures Financial Statement Employee Benefit Plan Gov't/School District Peer Review BUSINESS CONSULTING M&A Services & Due Diligence Succession & Exit Planning Strategic Planning & Advisory Board Services Risk Management CLIENT ACCOUNTING SERVICES Individual Business Accounting CFO & Controller Services QuickBooks Training & Support Payroll Services & Compliance WEALTH MANAGEMENT 401k Planning Individual Investing Retirement Planning Insurance Review At ELO CPAs & Advisors, our goal is to help our clients manage the ever-changing business world. Our business consulting services practice is led by a leadership, operations and finance executive with over 20 years of experience on the same side of the table as our clients. Our tax and audit assurance practices are led by homegrown CPAs with decades of experience in all areas of tax and audit. Our Outsourced & Advisory Services practice covers a variety of finance and accounting support needs ranging from accounting and payroll sources to outsourced CFO & Controller services. ELO also has a Wealth Management practice backed by the services of RIA Advisory Group and led by a practice leader with decades of experience. ELO has a full range of services to help you with everything you need to be successful in business and in life. We invite you to schedule a consultation with us to see how our approach to your needs can make a significantly positive impact for your business’s performance. GET IN TOUCH Leave us a message... Submit Thanks for submitting! Please leave this field empty.

  • Chamberlain Office | ELO CPAs & Advisors | South Dakota

    CHAMBERLAIN OFFICE CONTACT US 316 Sorensen Dr Chamberlain, SD 57325 ​ Ph: Fax: 605-234-5417 605-234-6055 GET IN TOUCH Leave us a message... Submit Thanks for submitting!

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Sioux Falls Office

Heather Ridge Village
6300 S Old Village Pl
Sioux Falls, SD 57108

Ph: 605-271-1302
Fax: 605-339-4991

Mitchell Office
1820 N Sanborn Blvd
PO Box 249
Mitchell, SD 57301

Ph: 605-996-7717

Fax: 605-996-4091

Yankton Office

118 W 3rd St
Yankton, SD 57078

Ph: 605-665-6007
Fax: 605-665-6008

Huron Office

2260 Kansas Ave SE, Ste 2
PO Box 951
Huron, SD 57350

Ph: 605-352-8573

Fax: 605-352-8594

Chamberlain Office

316 Sorensen Dr
Chamberlain, SD 57325

Ph: 605-234-6055
Fax: 605-234-5417

Miller Office

114 East 3rd St.
Miller, SD 57362

Ph: 605-853-2130

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