Federal Payroll Tax Deferral Guidance

 

On August 28, the Department of Treasury and Internal Revenue Service released guidance (Notice 2020-65) that implements President Trump’s recent memorandum directing the Secretary of the Treasury to allow employers to defer certain payroll taxes if they so choose.

The deferral applies to wages or compensation paid from September 1 through December 31, 2020.

Employers that defer the tax collections from September 1 through year’s end will need to collect unpaid taxes from that period starting on January 1 and remit them by April 30.

The guidance allows employers to defer withholding and paying the employee portion of the Social Security payroll tax if the employee’s wages or compensation during any bi-weekly pay period generally are less than $4,000, calculated on a pre-tax basis, or the equivalent amount with respect to other pay cycles.

Additional tax relief related to the COVID-19 pandemic can be found on IRS.gov.

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  • Next up: Find Your 2020 Summer Intern

    Find Your 2020 Summer Intern

     

    The Greater Cleveland Partnership’s Internship Central program is again collaborating with Tri-C to offer GCP members the opportunity to participate as an internship host employer for Tri-C’s 5th annual Summer Internship Program. The internships will be 100 hours in duration, i.e. 20 hours/week for 5 weeks or 10 hours/week for 10 weeks, from May 26 to August 7, 2020. Employers are able to host more than one intern.

    As an external host employer, the company would be placed with an intern that best matches your needs. Tri-C manages the HR functions of the internship such as hiring, placement, background check, and internship compensation. Students will be compensated by the college at $11 per hour.

    Other benefits to the host employer include:

    • Screening of interns for 2.0 minimum GPA, active student status and other requirements will be conducted by the College.
    • Speed networking internship fairs (opportunity for employers to interview potential interns) hosted by the College.
    • Students will be considered Cuyahoga Community College employees (on Tri-C’s payroll).
    • Thorough background check and drug screening conducted by the College.

    The host employer is responsible for:

    • Providing the internship job description by 12/6/2019, click here for the job description template
    • Attending an information session on 2/11/2020 (Metropolitan campus 9:00am-10:30am) to learn about the role of the host/employer, timelines for hiring and next steps
    • Providing supervision, coaching, feedback, and support to the intern during the internship period
    • Providing meaningful work and learning experiences for the intern
    • Developing and sharing a work plan for the intern, outlining objectives and deliverables throughout the 5 or 10-week internship
    • Ensuring the internship is complete between May 26, 2020 and August 7, 2020.
    • Providing a workspace and other resources (e.g. access to computer, reference materials, and telephone)
    • Attending ONE of the Internship Fairs. Attending an internship fair is essential because this is where you will meet and interview potential interns and make your top intern selections.
      • Metropolitan Campus (downtown Cleveland) – Friday, March 6, 2020,
      • Western Campus (Parma)- Tuesday, March 10, 2020

    Internship host opportunities will be filled on a first-come, first-serve basis.  If you are interested in hosting a student during summer 2020, please complete the Summer Internship Job Description and return to Angela Finding at afinding@gcpartnership.com by December 6, 2019. For questions regarding the program, call Angela at 216-592-2385.

     

     

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  • Next up: Rooted in Our Communities: First Federal Lakewood Helps Businesses Weather Uncertain Times for 85 Years

    Rooted in Our Communities: First Federal Lakewood Helps Businesses Weather Uncertain Times for 85 Years

     

    “Our vision and mission is that all people have a right to affordable housing,” said John Habat, President/CEO at Greater Cleveland Habitat for Humanity.

    First Federal Lakewood is helping Habitat for Humanity realize that vision with access to funding through a business line of credit and more recently, a loan through the CARES Act Paycheck Protection Program (PPP). 

    “Nobody was coming forward offering us a line of credit. I said, ‘Let me try reaching out to First Federal Lakewood.’ What they did was arrange for us to have a line of credit,” said Habat. “There’s just no comparison. You go into the bank and they know you.”

    Habitat for Humanity again turned to First Federal Lakewood to apply for a loan through the PPP to be able to keep its workers on the payroll. Habat said he was on the phone right away with someone at First Federal Lakewood. “In 10 days, we had our approval. When your banker comes through for you like that, that’s just the best,” he added.

    Helping Local Businesses Thrive
    Habitat for Humanity is just one of hundreds of organizations and small businesses First Federal Lakewood works with to invest in the local economy and help local businesses thrive.

    Thinking Cap Child Care in Cleveland is an all-female, family-owned small business that provides child care services. Thinking Cap’s relationship with First Federal Lakewood began with a PPP business loan. Since then, Jaishawna Bates, Thinking Cap Director, has opened business and personal accounts, and referred friends and family to First Federal Lakewood.

    “Receiving paperwork or an application can be so tedious. They gave me a little push and the reassurance that we would figure it out together. They go above and beyond in wanting to help. I think that it’s a wonderful thing,” said Bates.

    IT-services firm UCG Technologies, which is located in Independence, was looking to secure flexible funding. A business line of credit from First Federal Lakewood was just what the company needed.

    “We chose First Federal Lakewood primarily because of the people. I can pick up the phone and get them on the phone, send them an email or meet with them quickly in person. At other banks, that may not be the case,” said Jim Kandrac, President, UCG Technologies.

    First Federal Lakewood has been committed to Northeast Ohio for 85 years. As a mutual bank, First Federal Lakewood is owned by depositors and not shareholders, so the emphasis isn't on quarter-to-quarter results. That has proven especially helpful during COVID-19 in being able to refocus resources to serve the community directly, providing additional assistance and helping businesses and organizations navigate the CARES Act.

    “We continue to invest in our local economy and embody what it means to be a good neighbor and a mutual bank. We don’t just serve this community; we’re a part of it, too,” said Kurt Kappa, Chief Lending Officer at First Federal Lakewood. “We remain committed to helping our local economy and the members of our community get through good and bad times so they can thrive.”

    Paycheck Protection Program
    When the PPP was announced, First Federal Lakewood’s business team quickly got up to speed to be able to help as many local businesses and organizations connect to PPP loans as possible and weather the ensuing economic storm. The results through early July speak for themselves:

    • 1,259 total loans
    • $105.5 million in total PPP loan dollars
    • $83,722 average loan amount
    • Helped businesses retain 12,377 jobs in our communities
    • 93% of loans less than $250,000
    • 40% of total loan dollars to women and minority-owned businesses
    • 80 non-profits secured loans of more than $12.6 million

    “We believe local businesses, non-profits and local economic development departments are the fabric of our community, working to make each community better. We have been proud to support our neighbors in securing loans through the PPP and a variety of other ways to support our local communities,” said Kappa.

    He said relationships are a hallmark of working with a mutual bank, where clients get the knowledge and service of larger banks along with community knowledge and small-bank relationships—and the ability to form relationships with the decision makers at the bank.

    Jim Kandrac from UCG Technologies agrees with that assessment. “At the end of the day, people buy from people and it’s about relationships. First Federal Lakewood stepped up to the plate, addressed our needs and got it taken care of,” he said.

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  • Next up: GCP Hosts Panel to Promote Diversity in Commercial Real Estate

    GCP Hosts Panel to Promote Diversity in Commercial Real Estate

     

    Over 40 people interested in commercial real estate attended What’s Happening in Cleveland: A Conversation on Diversity & Inclusion in Commercial Real Estate on October 24. Hosted at GCP and presented by the Real Estate Associate Program (Project REAP), attendees enjoyed refreshments while Ken McIntyre, the project’s executive director, spoke. He noted that the program serves as a bridge between talented minority professionals and commercial real estate companies looking for talent, through educating those professionals on the business side of the industry. Angele Robinson-Gaylord, President of North American Real Estate at IKEA, was the Keynote speaker. Graduating Project REAP in 2009, Robinson-Gaylord detailed her experience transitioning from practicing law to working in commercial real estate. As a woman of color, she noted how graduating Project REAP gave her the tools to succeed in an industry historically under-represented by people that look like her.

    Robinson-Gaylord then sat on a panel to discuss the current state of Greater Cleveland’s commercial real estate industry. Joining her was Michael Elliot (Program Manager of Capital Access Fund, National Development Council), Christopher Nance (Director of Construction Diversity & Inclusion Program, GCP), and Shonna White (Real Estate Manager, CBRE). After answering questions from moderator David Browning (Managing Director, CBRE), the panel opened to questions from the floor.  Questions pertained to the potential impact our local colleges and universities can have on minority participation in the industry, and how we as a region can make young minorities feel like real estate is a profession that they can and want to pursue. The evening ended with networking, as attendees had the chance to speak personally with the panel members.

    For information about an upcoming REAP Academy being planned for 2020 in Cleveland, please contact Vince Adamus at 216-592-2258 or vadamus@gcpartnership.com. Learn additional information regarding the nationwide REAP program.

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  • Next up: GCP Members Participate in Statewide Roundtable on Women and Minority Businesses

    GCP Members Participate in Statewide Roundtable on Women and Minority Businesses

     

    Last week, GCP women and minority-owned business members participated in a roundtable discussion event hosted by state Senator Nickie Antonio. The discussion focused on the unique concerns of women and minority-owned businesses. It also served as a starting point to help strategize potential legislative solutions.

    Women and minority business owners from across the state of Ohio convened for the meeting, providing valuable feedback to Ohio’s lawmakers in order to support the growth of female and minority businesses. GCP has remained committed to advancing business growth among a diversity of stakeholders. In its latest public policy agenda, GCP called for the review of administrative rules for various state programs that support growing minority and diverse ownership of small businesses.

    Conversations with members who experience obstacles to growth first-hand are a critical part of engaging the state legislature to pass comprehensive solutions.

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  • Next up: GCP Raises the Bar for Support of Levy Increases

    GCP Raises the Bar for Support of Levy Increases

     

    When GCP’s strategic plan called for a better understanding of the impact of our region’s tax climate, our members mobilized to support a deep-dive analysis. The result was an in-depth report that shows our region’s residents face a disproportionate tax burden when compared to peer cities.

    In light of the report and other ongoing research, this week GCP’s Board of Directors endorsed a resolution stating the organization’s intent to oppose future levy millage increases that fail to demonstrate a unique and compelling contribution to our economy. The decision was made by GCP member leaders in anticipation of additional levy requests in 2020, on top of other potential increases that will appear before the end of 2019.

    To read the full press release and the resolution, click here. You can read Cleveland.com’s coverage on the announcement here.

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