July 1, 2020
September Financial Update
You don’t need me to tell you how crazy this year has been – and it’s not even over yet! This month we’ve continued to grapple with the coronavirus and surges in cases from new sources like returns to college campuses. Meanwhile, we all keep working from home and wondering how school home learning is going to go this year. I read a great article called “Your ‘Surge Capacity’ is Depleted – it’s why you feel awful” on our various abilities and inabilities to deal with months of crisis.
For people following the Small Business Administration’s recent guideline updates, it’s easy to feel like enough already, we’re already trying to hit a moving target with these forgiveness applications.
For a full list of tax deadline dates, see the IRS Tax Calendar, but briefly:
- September 15: Due date for corporations, partnerships and individuals who filed 6-month extensions to file their taxes.
- September 15: Individuals must file the third installment of their Estimated Taxes on 1040-ES.
Government Aid in Coronatimes
Have you filed your Paycheck Protection Program forgiveness application yet? The SBA published updated Guidance in August on August 4 and again on August 24. The deadline to apply for the program was August 8 (links to Forbes articles). The opening date for forgiveness applications was August 10.
A few great resources for PPP help in case you’re thinking about applying for forgiveness. Some CPAs are wondering if we shouldn’t wait and see how this initial round of forgiveness applications goes:
- the FMA PPP Toolbox for Nonprofits
- the Freelancers Mutual Aid Circle,
- the SBA’s Coronavirus Small Business Guidance page
- Quickbooks has a Q&A Forum on the PPP
- Gusto Payroll has a Step-by-Step Guide to the forgiveness application
- Paychex has a PPP Practical Guide
What’s Happening, in Charts
The recession that hit as a result of the coronavirus has been felt across the board, but recovery isn’t so even – many Americans are struggling and haven’t felt any recovery at all. The Washington Post reports that while stocks soar and white-collar workers work from home, those in lower-earning wage groups continue to grapple with lost wages and unemployment. From the Washington Post, “As much of the economy has moved to work-from-home mode, the shift has mainly benefited college-educated employees who do most of their work on computers. A Fed survey found that 63 percent of workers with college degrees could perform their jobs entirely from home, while only 20 percent of workers with high school diplomas or less could work from home.”
Speaking of the top tier of income, the Economic Policy Institute reports a continuing shift in compensation away from the workers in a company toward the top position of CEO in a company. For real numbers, if an average worker makes $15 at a company, the CEO would make $4800 per hour these days.
From their report, “CEO compensation surged 14% in 2019 to $21.3 millionCEOs now earn 320 times as much as a typical worker,” the chart below shows how CEO compensation has grown since the sixties, with marked surges in the 1990s toward today’s high marks.
The folks at Shopify have launched a show about quitting your job and starting your own business. The show follows six groups who are competing for $100,000 for their businesses.
Craft Industry Alliance reports on increased sales on Etsy's site during the pandemic. See more about what sold well, and where the sales came from.
Faire, the online marketplace, releases its 2020 holiday season trend predictions, great to know as wholesalers begin to start shopping in September. What's on the list? Handmade items, tie dye, and political accessories, among other things.
Continuing to function despite disruptions and crises is on the forefront of everyone’s mind. Yet many were caught unprepared for the remote work and financial hardship COVID-19 has brought. How can your business work to prepare for future disruption?
Craft Industry Alliance asks what kind of entrepreneurial venture you're engaged in, and explains the difference between the two.
This article from ASAE talks about investments as one way to think about financial uncertainty for associations and nonprofits. The article considers investment policies, and how they impact returns.
What greater obstacles to some people versus others face with remote work? How can those obstacles be overcome? Issues such as parenting, gender, race, disabilities, and more affect people differently at home than at work.
ASAE talks membership uncertainty in CoronaTimes. How some associations are trying to predict membership renewals. Also great for nonprofits with memberships and donations!
Virtual meetings are great, except the networking leaves something to be desired. How to facilitate hallway conversations virtually? Associations Now has three ideas.
TechRepublic reports that most Americans view privacy as a fundamental right. But do their actions help or hurt? It seems like the latter.
Axios reports on a poll conducted in June that sheds light on the frustrations that most Americans feel about not having control over their online data or privacy.