PPP Update: New Interim Final Rule and Simplified Forgiveness Application for Borrowers of $50,000 and Less

In the time since last week’s seminar, “Your PPP Covered Period is About to End: Now What? – What We Know as of October 8, 2020”, the Treasury and SBA have released a new Interim Final Rule (IFR) and a simplified application for the forgiveness of PPP Loans.

This new application form — PPP Loan Forgiveness Application Form 3508S — can be used by borrowers with loan balances of under $50,000.  These borrowers are also now exempt from any reductions in forgiveness based on reductions of full-time equivalent employees (FTEs) and reductions in employee salary or wages.  The IFR streamlines the forgiveness process for borrowers of under $50,000 because they will not be required to perform potentially complicated FTE or salary reduction calculations.  Borrowers will still need to submit documents to the lender to support the eligibility of forgiveness.  The documents needed to be submitted with the application will vary based on individual lenders.  The IFR also included further guidance on lender responsibilities. Here are the instructions for completing Form 3508S.

Treasury Secretary Steven Mnuchin has stated the Treasury continues to be in favor of further legislation to simplify the forgiveness process.

As a reminder, the SBA opened its forgiveness application portal with lenders on August 10th. This new streamlined process was introduced two months after and there is still strong support for further legislation. Since the application and forgiveness process remains unclear at best, most borrowers have hesitated in filing their applications. Most banks have restricted their acceptance of the application in some manner as well.

With this new streamlined process, we suspect you may see lenders open their application process to loans under $50,000.  Keep in mind, as we stated in our Zoom Presentation on October 8th, the expenses paid with PPP loans at this point remain non-deductible. Thus, the loan is essentially taxable if forgiven. There continues to be support to make the expenses paid as deductible, so borrowers may still want to consider waiting to file their forgiveness applications – even with this new streamlined process.  However, there may be reasons to file as soon as possible as well. Each borrower will have to work with their advisor individually to determine what is best.

As always, if you have any questions, please do not hesitate to contact us.

Pennsylvania Construction Employers Must Now Comply with E-verification of Employee Social Security Numbers

As of October 7, 2020 employers in the construction industry must comply with Act 75: Pennsylvania’s Construction Industry Employee Verification Act, which prohibits the employment of unauthorized employees. Under this Act employers must now verify their employees’ Social Security numbers using the United States’ E-Verify system, which confirms a person’s eligibility to work in the U.S. Non-compliant employers will incur penalties.

If you have questions about Act 75, or another payroll concern, please call us at 215-723-4881 or contact us online.

“Your PPP Covered Period is About to End: Now What? – What We Know as of October 8, 2020” – Seminar Recording

Your covered period for your PPP Loan is coming to an end. Now what? On Thursday, October 8, 2020, Steve Moyer, CPA PFS CGMA CSEP and Brent Thompson, CPA CMA CGMA presented a seminar via Zoom featuring the latest information on the status of Paycheck Protection Program loan forgiveness, including:
  • Review of the logistics and timing of forgiveness applications
  • Accounting for the PPP loan
  • How the new Interim Final Rules issued since 6/11 affect the application
  • How the new FAQs issued since 6/11 affect the application
  • Pending legislation that may affect the forgiveness process
  • Review of other miscellaneous updates and planning opportunities, including payroll options

Watch the recording of the seminar and access a PDF file of the presentation.

If you have any questions, please contact us online or via phone at 215-723-4881. We will continue to issues these updates as information becomes available.

Canon Capital Wealth Management Achieves CEFEX Certification of Fiduciary Excellence for Thirteenth Consecutive Year

We are honored to announce that Canon Capital Wealth Management has successfully achieved CEFEX (Centre for Fiduciary Excellence) recertification for the thirteenth consecutive year. This designation places Canon Capital Wealth Management in an elite group of investment advisory firms that are certified in this global program.

“Our CEFEX certification means that we understand the importance of having a documented investment process, allowing our clients to have confidence that their investment strategies are being prudently organized, formalized, implemented, and monitored,” said Dr. Peter Roland, Managing Director of Canon Capital Wealth Management & Family Office Services. “Additionally, this certification ensures that our firm is monitored annually by an independent third party, which effectively helps our clients manage their fiduciary obligations.”

CEFEX is an independent global assessment and certification organization, working closely with investment fiduciaries and industry experts to provide comprehensive assessment programs to improve risk management for institutional and retail investors. CEFEX certification helps determine the trustworthiness of investment fiduciaries, providing an independent recognition of a firm’s conformity to a defined Standard of Practice as described in the handbook “Prudent Practices for Investment Advisors.”

According to the Managing Director of the Centre for Fiduciary Excellence, Carlos Panksep, “Maintaining certification requires continued adherence to the industry’s best practices, which is verified through our annual renewal assessment.”

The standard is substantiated by legislation, case law, and regulatory opinion letters from the Employee Retirement Income Security Act (ERISA), the Investment Advisor’s Act of 1940, Uniform Prudent Investor Act (UPIA), Uniform Prudent Management of Institutional Funds Act (UPMIFA) and the Uniform Management of Public Employee Retirement Systems Act (MPERS) in the U.S.  A full copy of the standard can be downloaded from CEFEX at www.cefex.org/advisor.

A copy of our certification information and certificate can be viewed here.

I’ve Been Working My Philadelphia-based Job from Home in the Suburbs. Do I Need to Pay Philadelphia Wage Tax?

The City of Philadelphia has issued guidance for employees working for Philadelphia-based organizations who have been required to work from their homes outside of Philadelphia due to the COVID-19 pandemic. The key word being “required.” It states:

The City of Philadelphia uses a “requirement of employment” standard that applies to all non-residents whose base of operation is the employer’s location within Philadelphia. Under this standard, a non-resident employee is not subject to the Wage Tax when the employer requires him or her to perform a job outside of Philadelphia including working from home.


A non-resident employee who works from home for his or her convenience is not exempt from the Wage Tax – even with his or her employer’s authorization. On the other hand, if a Philadelphia employer requires a non-resident to perform duties outside the city, he or she is exempt from the Wage Tax for the days spent fulfilling that work.

If your Philadelphia-based employer continues to withhold Philadelphia Wage Tax from your paycheck while you are required to work from your home located outside of Philadelphia, you can request that they stop this withholding until you stop working from home due to the COVID-19 pandemic.

At the end of the 2020 tax year, you will be able to file for a Philadelphia Wage Tax refund. The application form is available here.

If you have questions about this or any other payroll issue, please call us at 215-723-4881 or contact us online.

The Latest on PPP Loan Forgiveness

As you are probably aware, many banks have been promoting that they have started to accept applications for PPP loan forgiveness. However, the banks are finding that most of the forgiveness applications they receive are incomplete or incorrect. This is partly due to the lack of significant guidance from the SBA and the Treasury Department on the filing of applications prior to the completion of the 24-week covered period. The SBA and Treasury continue to release guidance containing definitions and limits vs. the logistics and mathematics of filing for forgiveness early.

To that end, an Interim Final Rule (IFR) was issued on August 24th. This IFR contains information on certain situations like sublets, mortgage interest, and home-based businesses. It speaks to some more common scenarios as well. This interim final rule clarified the following:

  • Corporate owners with less than 5% ownership are NOT subject to the limits on owner compensation (see this chart on owners’ compensation limits).
  • Partners in a partnership, however, are still subject to the $20,833 guaranteed payment limit for the 24-week covered period.
  • Related party rent expense is now limited to the equivalent of the mortgage interest on the property during the covered period.
  • Mortgage interest paid to a related party is NOT eligible for forgiveness

If any of the above circumstances apply to your situation and you filed the forgiveness application prior to August 24th, it is most likely wrong. You should contact your bank immediately to see what can be done to correct your application.

We, as a firm, are STILL advocating patience in filing the applications. There will definitely be more guidance issued on the logistics and mathematics of completing the application. There will also most likely be more guidance issued on dollar limits, definitions, etc. Most of all, we believe there will be more legislation passed possibly affecting the PPP program.

We will continue to monitor the situation and communicate significant developments. We will also consider holding a Zoom Meeting on the topic for the end of September or beginning of October.

As always, if you have any questions, please do not hesitate to call us (215-723-4881).

Payroll Tax Holiday Begins September 1, 2020

In early August, 2020, President Trump issued an executive order deferring the employee portion of Social Security Tax beginning September 1, 2020, through the end of the year.  As of today, the Treasury Department has not issued guidance as to how employers should implement this Payroll Tax Holiday deferral. 

Until guidance is issued from the Treasury Department, we will continue to withhold Social Security tax from our client payrolls but are offering the deferment option upon request. If you are opting for deferment of the employee portion of Social Security Tax for your company’s payroll, you may wish to inform your employees that this is a deferment and not a reduction of the Social Security tax. Employees will owe this tax when they file their 2020 personal tax returns.
As always, if you have any questions, please do not hesitate to call us (215-723-4881).

Marissa Illingworth Earns Accredited Investment Fiduciary Designation

We are pleased to announce that Marissa Illingworth, Canon Capital Wealth Management Investment Advisor, has earned the designation of Accredited Investment Fiduciary (AIF). The purpose of this designation is to assure that those responsible for managing or advising on investor assets have a fundamental understanding of the principles of fiduciary duty, the standards of conduct for acting as a fiduciary, and a process for carrying out fiduciary responsibility. This professional certification demonstrates that Marissa has met the requirements to earn and maintain this widely respected credential.

If you have any current needs regarding your investment or retirement plans, please feel free to contact our Wealth Management department via phone at 215-723-4881 or online.

Now Is a Good Time to Do a Paycheck Check-up

To say that 2020 has brought a lot of change into our lives is an understatement. Now that businesses have started to reopen and employee pay may have been adjusted from earlier projections, it is an ideal time to do what we call a “Paycheck Check-up” to ensure the desired amount of federal withholding tax is withheld each pay period.

Access the online withholding calculator here.

We urge you to share this information with your employees so that they can take proactive measures before the end of this year.

If you have questions, please consult with your payroll service or tax advisor. If you do not currently have a payroll service or tax advisor, we welcome the opportunity to serve you. Please call 215-723-4881 or contact us here.

We Are Hiring! Immediate Need for a CPA Manager

Looking for a new challenge? Tired of the long commute to that large accounting firm in Philadelphia? Eager for that next step in your career to firm leadership?

Or perhaps you have a trusted colleague, family member, or friend who is considering a new opportunity? We are currently offering a $1,000 referral bonus to you should we hire the person you refer to us.

If you or someone you know are in search of a new opportunity in an environment where going above and beyond and having a desire to benefit our community by serving our clients well is the norm, let’s see if you/they would be a good fit for our CPA Manager position in our Harleysville office.

We are seeking a manager/leader who is a clear communicator, curious, adaptable, personable, collaborative, and above all, self-motivated. These qualities are imperative in meeting our expectations for the quality of service required by our commitment to our clients, but they are also necessary in providing leadership to our staff. The successful candidate for this position will be viewed as having a fast-track to partner status.

We provide the usual services but going over and above basic compliance is our goal. We interact on a regular basis with our small business clients, meeting throughout the year to provide consulting and other services. We are also pleased to work with a wide array of not-for-profit clients who better our community every day. Internally, we offer a friendly work environment with an emphasis on work-life balance tailored to each person’s goals and expectations. If that sounds inviting, and you think you have something to contribute to our firm, apply today with salary requirements as well as a cover letter telling us something about yourself that makes you the right person for this position.

Job Type: Full-time

Pay: $75,000.00 – $100,000.00 per year

Education: Bachelor’s (Required)

Licensing: CPA (Required)


  • Minimum 5-7 years of recent public accounting experience; A&A (preferred) or both A&A and tax
  • Proficiency in QuickBooks and Microsoft Office; QuickBooks ProAdvisor a plus, not required
  • Proficiency with Thomson Reuters UltraTax and accounting products a plus, but not required
  • Personnel management a plus, but not required

This Job Is Ideal for Someone Who:

  • Demonstrates a high degree of independent judgment
  • Possesses the ambition to embrace opportunities that present themselves
  • Excels at providing quality work in a timely and accurate manner
  • Exercises excellent communication skills, both written and verbal, in any setting
  • Multi-tasks, meets required deadlines, and works effectively as part of a team
  • Shows strong technical, analytical, and organizational skills
  • Thrives in a relatively high-pressure environment and can make frequent shifts as the job demands
  • Knows how to manage and develop staff, giving regular feedback and guidance

Responsibilities will include:

  • Providing A&A services using Thomson Reuters accounting products for compilations, reviews, and audits of not-for-profits and for-profit businesses in varied industries.
  • Providing tax services using Thomson Reuters UltraTax for Forms 706, 709, 990 series, 1040, 1041, 1065, 1120 series, and multi-state and local returns, with Thomson Reuters accounting product integration
  • Taking responsibility for planning and executing client engagements as assigned, delegating work to staff, reviewing that work, and training as necessary
  • Managing personnel as assigned, including annual reviews and interim monitoring as needed
  • Other projects as they arise

Benefits Offered:

  • Flexible work schedule
  • Referral bonus program
  • Paid time off
  • Health insurance
  • Dental insurance
  • Life insurance
  • 401(k) retirement plan
  • Flexible Spending and Dependent Care Accounts
  • AICPA/PICPA dues and CPE costs
  • Educational and professional designations reimbursement

Schedule: Monday to Friday, additional tax season hours from January to April 15

Email resume and cover letter to hresources@canoncapital.com