New EZ Paycheck Protection Program (PPP) Loan Forgiveness Form

The Small Business Administration recently issued the EZ Paycheck Protection Program (PPP) Loan Forgiveness Form, which allows some qualified borrowers to fill out a smaller (a two-page rather than a four-page) form.

The EZ form still requires borrowers to do calculations and provide documentation, but not as much as the full form. (Note that borrowers still need to save documentation for proof of certifications.)

Who can use the EZ PPP Forgiveness form?

The EZ form can be used on any size loan if the borrower can affirm one of the following:

  1. The borrower is a self-employed individual, independent contractor, or sole proprietor who had no employees at the time of the PPP Loan application and did not include any employee salaries in the computation of average monthly payroll in the Borrower Application Form (SBA Form 2483).
  2. The borrower did not reduce annual salary or hourly wages of any employee by more
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What you need to know about your W-4 form (even if you aren’t starting a new job)

The W-4 form you fill out when you start a new job lets your employer know how much tax they should withhold from your paycheck. It is important to note that you should also fill out a new W-4 form any time you have changes in your financial or personal circumstances.

Filling out the form correctly is important because if you don’t withhold enough tax, you could end up owing a large sum to the IRS at the end of the year. On the other hand, if you overpay withholding you are temporarily giving money to the government that you could use for things like paying bills or investing.

The IRS issued a new W-4 for 2020. (Note: You do not need to fill out a new W-4 if your employer already has your old form on file.) The new form eliminated the ability to claim personal allowances (with the old … Read More

Retirement Risks to Consider

Planning for retirement is tough even in the best of times, and it has become even more challenging in the face of the Covid-19 pandemic. A recent study by Shwab Retirement Plan Services found that 41 percent of 401(k) survey participants have made changes to their 401(k) plans as a direct result of the coronavirus.

The survey’s results also showed that pre- and present retirees perceived retirement risks differ from their actual risks. Research economist Wenliang Hou of the Center for Retirement Research at Boston College analyzed five major sources of risk faced by a typical retiree:

  • Mortality or longevity (living longer than expected and running out of money)
  • Market (bad stock returns or a decline in housing values)
  • Health (unexpected medical expenses and long-term care costs)
  • Family (death of a spouse or unforeseen needs of family members)
  • Policy (such as a Social Security benefit reduction)

Hou’s empirical analysis found the … Read More