Recently the S&P 500 hit a new intraday high, which was driven both by some certainty around election results as well as optimism for a COVID-19 vaccine on the horizon. The morning after election day, it seemed fairly clear that the Republican party would maintain control of the Senate. Stock markets rallied after having been positioned for a “blue wave” of Democratic control that would have led to more sweeping reforms.
As borrowers approach the end of their 24 weeks for the Payroll Protection Program (PPP), the question “What do I need to do to apply for forgiveness?” goes through their minds. Many borrowers scrambled getting items put together to apply for the PPP loan because funds were limited, but they do not need to rush when applying for forgiveness. The borrower must apply for forgiveness within ten months following the end of the covered period of 24 weeks. If forgiveness is not applied for, loan payments will begin at the end of this 10-month period. Once forgiveness is applied for, the lender has up to 60 days to review the forgiveness application.
October’s positive uptrend in the stock market has been a welcome respite. As of yesterday’s close, October’s month-to-date performance of the S&P 500 has basically made up for September’s decline. On a total return basis, the index is up 9.4% year-to-date and has gained 18.5% over the past 12 months. That is impressive performance considering we continue to live under COVID-19 rule in a partially opened economy, and it is only 18 days from a contentious election between two radically different candidates.
It is hard to believe we are already in the fourth quarter of 2020. Usually by this time of year, vacations are over, children and grandchildren are settled back into school, and the focus begins to shift toward the upcoming holidays. However, as we are all reminded daily, 2020 has been anything but an ordinary year. We are in the midst of a global health pandemic. There is civil unrest across the country and we are approaching a presidential election with a close race between two individuals who are vastly different.
August continued the recovery from the March 23rd bottom, with a total return of 7% for the S&P 500 Index through the end of the month. The index reached new all-time highs on September 2nd but has recently given back some gains.
As you may know, President Donald Trump sent a memorandum on August 8, 2020 to the Treasury Department to defer collection of the employee portion of Social Security tax from September through the end of 2020 as part of COVID-19 relief. September 1, 2020 marked the first day of the payroll tax “holiday” or deferral period of the employee portion of Social Security tax. On August 28, 2020, the IRS issued guidance to allow employers to suspend withholding and paying eligible employees’ Social Security payroll taxes.
The rebound in equities from the March lows continues, with major stock indices trading once again near the all-time highs seen in February. Between the sharp first quarter drop and gains since, this leaves the index up 5.6% year-do-date including dividends as of yesterday’s close.
Shifts in technology are always on the move, and micro-processor manufacturing is not immune to the challenges of evolution. In recent weeks we have heard significant announcements coming from two major influences in the computing arena. Intel and Apple have decided to part ways with one another.
This year has been a turbulent one, as much of the news and market fluctuations have been centered around the COVID-19 pandemic. Even with COVID-19 still very much in the news, investors are already starting to look beyond the virus and out to the election that is several months away.
We get a lot of questions from small business owners about paying for their employees’ health insurance premiums. Many believe they can pay for employees’ health insurance premiums tax free. The reality is that as of July 1, 2015, employers are no longer allowed to reimburse employees for health insurance or pay for individual health insurance premiums. All healthcare premium payments must be paid through a group healthcare plan. Violations could result in a penalty of $100 per day per employee.