COVID-19 Update

At Ryder & Company the health and safety of our office staff and clients are our top priority. With the COVID-19 virus having an increasing impact in our community, Governor Wolf has ordered all non-life sustaining businesses to close.

While our office is closed we are still serving our clients by working remotely. All clients are encouraged to use our Secure Firm Portal to send us files and exchange documents online.

Email will be the best way to contact us during this time. Thank you for your patience and understanding.

Below is some important information. Please check back frequently for updates as things are changing regularly during this time.

Pennsylvania Unemployment

• Employees collecting unemployment benefits for COVID-19 related reasons will not affect the employer’s contribution rate.

• Self-employed individuals and those who work as subcontractors (1099) will be eligible for benefits.  PA is working on a separate claims procedure and these persons should not apply until it is set up.  Monitor the PA Department of Labor website for information on when and how to apply

SBA Paycheck Protection Program Loan

• This loan is available for businesses with fewer than 500 employees, individuals who operate as a sole proprietorship or as an independent contractor, and eligible self-employed individuals.  You must have been in business on February 15, 2020.

• Applications are to be accepted beginning April 3, 2020.  Applications can be found on the US Department of Treasury website

• Contact a bank that you have a business relationship with in order to apply.

• To apply, you must calculate your average monthly costs over the 2019 calendar year for payroll costs (including benefits and state taxes), debt payments, mortgage payments and rent payments.  Seasonal businesses may use the period February 15, 2019 to June 30, 2019 instead of the average.

• The amount of the loan will be 250% of your average monthly payroll costs or $10 million, whichever is less.

• Payroll costs include salaries, commissions, tips, employee benefits, state and local taxes, and certain types of compensation to sole proprietors or independent contractors.  Excluded are FICA and federal tax withholdings and the costs of an individual employee in excess of $100,000 per year as wages.

• The loan proceeds are allowed to be spent on payroll costs, employee benefits, rent, interest on mortgages or other debt (debt must have been incurred prior to February 15, 2020), and utilities.

• The first loan payment would be due at least six months after the loan origination date (interest will accrue during this time).

• The amount spent on payroll costs, interest on the payment of mortgages (debt must have been incurred prior to February 15, 2020), rent on a lease (lease must have been in force prior to February 15, 2020) and utilities (service must have begun prior to February 15, 2020) during the 8-week period after the origination date of the loan may be forgiven.

• Any amounts not forgiven will be converted into a 2-year loan at a 1% interest rate.

• There is no prepayment penalty.

• No collateral is required.

• The loan does not require a personal guarantee.

• The amount forgiven is reduced if you fail to maintain the average number of full-time equivalent employees versus the period February 15, 2019 through June 30, 2019 or January 1, 2020 through February 29, 2020 as selected by the borrower. The forgiveness amount is also reduced to the extent that compensation for any individual making less than $100,000 is reduced by more than 25%.

• Forgiven debt will not be considered income for federal tax purposes.

Note – This information is supplied to inform our clients and partners.  However, the exact terms of loans are determined solely by the lender(s) and we can make no representation as to the accuracy or completeness of any information contained herein.

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