The knowledge you need

The economic conditions created by the COVID-19 pandemic have been easing in recent months due to the widespread distribution of the vaccine. Rolled-back restrictions have restored consumer confidence and increased demand. It was reported that the state unemployment rate for June had fallen to 4%, sharply lower than the 5.9% national average. Despite this, many Atlanta businesses are still struggling to overcome a year of lost sales and lackluster financials. Unfortunately, the recent closure of the Paycheck Protection Program (PPP) and Restaurant Revitalization Fund (RRF) has made it even more difficult. Although it may seem options are running out, it is important not to forget about the Employee Retention Tax Credit (ERC).

How is the IRS doing? According to key leaders on the inside, not so good. The Treasury Inspector General for Taxpayer Administration’s (TIGTA) interim report combined with the National Taxpayer Advocate's midyear report highlighted a federal agency that was already struggling to keep up … and then COVID-19 hit. Subsequent rounds of stimulus legislation and changing tax laws created what Erin Collins, National Taxpayer Advocate, called a “perfect storm.”

Since the Paycheck Protection Program (PPP) officially closed on May 31, 2021, there have been very few updates issued by the Small Business Administration (SBA). Most Atlanta borrowers have been focused on assessing loan forgiveness requirements, classifying expenses, making needed calculations, compiling documentation, and completing certifications.

The financial and economic conditions created for Atlanta families, individuals, and businesses, by the COVID-19 pandemic have been very challenging. For many businesses, initial stay-at-home and forced business closures meant a steep drop in revenue almost overnight. Faced with this reality, difficult decisions about employee furloughs and terminations were made. The result was a sharp increase in unemployment.

Managing a benefit plan can be a challenging task. There are multiple rules and regulations which must be followed including those mandated by both the IRS and the Department of Labor (DOL). Many of these originated with the Employee Retirement Income Security Act of 1974 (ERISA) which was designed to provide a broad framework for how plans should function including rules on plan administration, participant access, annual audits, and more.

The COVID-19 pandemic presented several and significant challenges for many Atlanta nonprofit organizations. The stay-at-home orders combined with social distancing rules not only impacted daily operations, the ability to deliver programs and services, but also had a devastating impact on revenue generation. In-person fundraisers, annual events, award programs, and more, which generate needed funds were scrapped requiring many to heavily rely on online efforts.

Since the start of the COVID-19 pandemic, there have been over 6,311 reported cases of fraud perpetrated against Atlanta individuals, families, and businesses. The primary communication method used to identify, manipulate, and extract financial information was email. The tactic, commonly referred to as a phishing attack, occurs when scammers (bad actors) attempt to solicit personal financial or other information by posing as a trustworthy organization or individual.

The COVID-19 pandemic created significant and serious challenges for Atlanta individuals, families, businesses, and nonprofit organizations. The forced business closures, stay-at-home orders, and social distancing guidelines meant an almost complete disruption to daily activities. While necessary to prevent widespread infection, it also caused businesses to fail, unemployment to skyrocket, and left many without work. Despite these unique conditions, it appears the pandemic had little impact on retirement savings.

The Cox Automotive Dealership Sentiment Index for Q1 2021,  found that many dealers are focused on staying in business and new inventory acquisition. In fact, employee retention and workforce issues do not appear to be a significant concern. Despite current challenges, it appears most believe the rest of 2021 will result in improving business conditions.

Over the past year, Atlanta businesses have endured new and unexpected financial, operational, and safety challenges. The COVID-19 pandemic created unpredictable conditions which forced many to make difficult expense-cutting decisions while seeking assistance from one of the many Small Business Administration (SBA) relief programs. Given these challenges, it is unthinkable that employees, customers, or vendors would be engaged in a fraud scheme draining precious funds so desperately needed.