The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, is a $2 trillion stimulus bill that was signed on March 27. This historic government funding dwarfs the two rescue packages from the Great Recession. It is aimed at supporting large and small businesses, industries, individuals, families, gig workers, independent contractors, and hospitals. But, its hefty price tag, quick signing, and less than stellar rollout have left many individuals and businesses wondering how it will relieve their burdens.
1. Paycheck Protection and Loan Forgiveness
The Paycheck Protection Program offers guaranteed loans of up to 250 percent your monthly payroll average, based on your previous year’s numbers. This loan is designed to allow you to continue to pay your workers during these difficult times. If your business is eligible, you can obtain this loan anytime between February 15 and June 30.
The portion of the Payment Protection loan spent on payroll, rent, mortgage, interest, or utilities is also forgivable by the SBA as long as all employees are kept on the payroll for eight weeks. Any portion of the loan that is unforgivable will be treated as a two-year loan with a 1% interest rate. However, payments on this amount will be deferred for 6 months. While the current Paycheck Protection Program funds have been accounted for and are set for distribution, Congress is working diligently to provide additional funds to continue offering the program to assist businesses.
2. Unemployment Benefits
Unemployment benefits are also being extended. Individuals that can qualify for unemployment now include those diagnosed with COVID-19, have a household member with the disease, are caring for someone with the disease, or are quarantined due to the disease. It also applies to individuals who cannot go to work due to coronavirus, is unable to begin their job, has become a widower of someone who was diagnosed with coronavirus and was the primary money maker, someone who quit due to coronavirus, and if your business closed. In addition, gig workers and self-employed workers are also covered under the CARES Act.
3. Penalty-Free 401(k) Withdrawals
Typically, if you’re younger than 59 1/2, the IRS slaps you with a 10% penalty when you withdraw money from your 401(k). But under the CARES Act, you can withdraw up to $100,000 penalty-free during the 2020 fiscal year to ease financial hardships caused by the coronavirus.
Withdrawal will still be subject to your ordinary income tax rate, but instead of paying the lump sum this year, you can disburse payments over a three-year term.
4. Employee Retention Credit
To encourage businesses to keep employees on their payroll during the slowdown, the IRS is offering a refundable 50% tax credit of up to $10,000 in wages paid by an eligible employer.
An eligible employer is defined by a business that is temporarily suspended in any form due to coronavirus, or that is making less than half its average revenue.
Employers can immediately claim the tax credit by withholding taxes that they would otherwise deposit each quarter. If credits exceed their tax liability, then employers can file a Form 7200 to receive an advance refund.
5. Employer Payroll Tax Delays
Ordinarily, business owners collect 6.2% of their employees’ wages for Social Security Tax and then match their contribution dollar for dollar. But the CARES Act allows employers to delay paying their portion of payroll tax in full until December 31, 2022, with at least 50% being due by December 31, 2021.
It is important to note that all businesses are approved for the deferral, but if you receive a loan under the SBA’s Paycheck Protection Program, you will not be eligible.
6. Paid Leave
Under the Families First Coronavirus Response Act, businesses with fewer than 500 employees will receive tax credits for the cost of providing paid leave to employees if taken for specified reasons related to COVID-19.
The tax credit will reimburse employers for 100% of the employee’s salary and health insurance costs. Employers will also face no payroll tax liability for the paid leave.
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Barbara Warmuth joined Bumgardner Morrison in 2014 as an administrative assistant with over 40 years of experience in accounts payable and administration. Barbara is responsible for welcoming and greeting clients, tracking accounts payable, maintaining up-to-date files, document processing and production, and providing administrative assistance to the Bumgardner Morrison team.
Barbara is a graduate of Victoria College and lives in Victoria, Texas with her husband of 40 years, Eddie. She enjoys spending time with her grandchildren, remodeling her home and landscaping the yard.
Lori joined Bumgardner Morrison in 2015 as an administrative assistant with over 31 years of experience in administration. Lori is responsible for welcoming and greeting clients, providing administrative assistance to the Bumgardner Morrison team, and producing the firm's newsletter.
Lori and husband Gilbert live in Victoria, Texas. She enjoys reading, quilting, crochet and spending time with family - especially their two granddaughters, Sydney and Avery.
Jamie first began at the firm in 2000 in an administrative assistant and billing role. Through the years she has developed skills and taken on new responsibilities to meet the wealth management needs of Bumgardner Morrison clients. As wealth management assistant, Jamie supports David, the director of wealth management, with all administrative and operations-related tasks, as well as all marketing and new business activities. She looks forward to each day in the office and helping people reach their financial goals brings a smile to her face. Before joining the firm, Jamie spent five years as a paralegal for a local estate planning and probate attorney.
Jamie plays the guitar and loves riding her Harley through the great outdoors. She and her husband have two daughters, Kelsey and Courtney.
Sheri joined Bumgardner Morrison in 2016 as a bookkeeper with 40 years of bookkeeping experience. She is responsible for preparing payrolls, financial statements and reports for several clients. Prior to joining the firm, Sheri was an Executive Administrative Assistant providing bookkeeping. Sheri has a Business Accounting Degree from Commercial Business College and studied Business Administration at Odessa College.
Sheri and her husband Tracy have been married 32 years and live in Victoria, Texas. They have two children. In her spare time she enjoys spending time with her husband, children and grandchildren.
Leah joined Bumgardner Morrison in 2012 as part of the administration team. In her current role, she is responsible for managing the reception area and greeting guests as they arrive. She also maintains deposits and accounts payable, document processing and production, manages the daily mail and human resources. Leah’s drive to grow and develop her skills as a bookkeeper has made her a perfect fit for the Bumgardner Morrison team.
Leah graduated from Texas A&M University with her Bachelor of Science in animal science. She is a member of the American Institute of Professional Bookkeepers, the American Association of Notaries and Victoria Area Aggie Mom’s Club. In her free time, she enjoys reading and spending time with her family. Leah, her husband and four children reside in Victoria, Texas.
Christine has been part of the Bumgardner Morrison team since 2008. As bookkeeper, she is responsible for recording the day-to-day financial transactions throughout the firm. She is also the dedicated administrator for one of Bumgardner Morrison’s larger clients. Working each day with a positive attitude and a helpful spirit, Christine loves assisting clients and coworkers with whatever they need.
Christine earned her accounting degree from Texas Vocational School in 2008. She currently lives in Victoria, Texas with her husband, Ryan, and three children: Travis, Kaedance, and Kassandra. Her hobbies range from crocheting to car racing and she even used to build houses for a living!
Ike joined Bumgardner Morrison in 1970. As client services manager, Ike is responsible for the supervision of the client services department, which supports the tax, audit and consulting division, as well as provides services, such as tax preparation, reviewing bookkeeping, financial statements, and payroll-related reports and forms. In his role, he strives to provide professional and timely service of the highest quality by making himself readily available and always willing to listen.
Ike attended Victoria Junior College where he earned an associate degree before attending the University of Texas to earn his Bachelor of Business Administration. In his free time, Ike enjoys golfing and fishing, as well as spending time with his family. He and his wife, Marva, have three children and four grandchildren.
D’an joined Bumgardner Morrison in 2017 and is responsible for tax, attestation, and bookkeeping engagements. She previously provided accounting and bookkeeping services for real estate management and manufacturing companies. Her friendly and approachable personality combined with her prompt responses to clients’ questions and concerns have helped her build great relationships with clients.
D’an is a graduate of Texas Lutheran University with a BBA in Accounting. She enjoys spending time with friends and family, especially her husband, Chad, and children, Allie and Cole.
Julie joined the professional staff of Bumgardner Morrison in 2008 and is currently responsible for tax, bookkeeping and payroll. Prior to joining the firm, Julie worked as a staff accountant for three years at Goldman, Hunt & Notz, CPAs and also seven years as an adult education instructor at The Victoria College and two years at Victoria Independent School District.
Julie earned her Bachelor of Business Administration in accounting at Texas A&M University. In her free time, Julie enjoys traveling and spending time with her husband, Rob, and their three children.
Amber joined Bumgardner Morrison as part of the professional staff and is responsible for attestation engagements and tax returns. She is a native Victorian and was part of the first graduating class at Victoria West High School. After graduating high school, Amber attended Victoria College where she received two associate degrees. She then attended the University of Houston-Victoria where she graduated Cum Laude with her Bachelor of Business Administration in Accounting in 2017 and her Global Master of Business Administration in Accounting in 2018. Prior to joining BumgardnerMorrison, she worked as the Office Manager at the Victoria Economic Development Corporation for three years. She is currently studying for the CPA exams and is a member of the TSCPA-Victoria Chapter. In her free time, Amber enjoys traveling with her husband, Jared, and spending time with her family.
Jennifer Lowder also joined the BumgardnerMorrison staff in 2019. Prior to joining Bumgardner Morrison, she worked for seven years at Harrison, Waldrop & Uherek, LLP as a staff accountant. Jennifer’s outgoing and bubbly personality allows her to build long lasting relationships with clients. She has extensive experience in governments and school districts.
Jennifer attends University of Houston-Victoria, where she is currently pursuing her Master of Business Administration in accounting. She has two children, Teryn and Michael. She is the Treasurer of the Victoria West Choir Booster Club and Treasurer-Elect for the Junior League of Victoria. She also serves as a member of the Victoria Chamber of Commerce. When not busy being a mom-chauffeur, she enjoys volunteering, dancing, spending time with family, friends and pets, and binge-watching TV.
Ashley joined BumgardnerMorrison in 2019 and is responsible for attestation engagements. Prior to joining the firm, she worked in Houston for three years performing audits for not-for-profit entities. She has a passion to serve other people and meeting client’s needs.
Ashley earned her Bachelors of Business Administration in accounting from Texas A&M University in 2014 and her Masters of Science in Accounting from Sam Houston State University in 2015. She is currently working towards attaining her CPA license. When she is not in the office, Ashley can be found spending time with her family, especially her husband, Roman, and daughter, Taylor. She loves her faith, attending concerts, and Aggie softball! Ashley is currently a member of Catholic Daughters of America in Ganado, TX.
Jackie has been part of the Bumgardner Morrison firm since 1970. He is a second generation member of the firm family; his father Jack R. Morrison, Sr. established the firm when he partnered with Joseph B. Bumgardner in 1952. Jackie once served as managing partner of the firm, but now continues to serve as CPA consultant and financial advisor. He has passed the FINRA Series 7 and 66 exams.
Jackie serves on the M. G. & Lillie A. Johnson Foundation board of Trustees. Jackie and his wife, Geanie, live in Victoria, Texas. They have two children, Lauri and Matt, and two grandchildren, Cole and Ella. Jackie’s hobbies include hunting, fishing, and golfing; he also considers himself to be a history buff.
Paula began her career with Bumgardner Morrison in 1977 and continues to serve the firm as a CPA consultant. She assists with tax and accounting services for individuals and businesses and advisory services. Paula is committed to professionally meeting the needs of clients.
Paula graduated from The University of Texas where she received her Bachelor of Business Administration in 1974. In her free time, she enjoys reading, University of Texas football, and music. She and her husband, Bill, love any time they can get with their son, Joshua and his wife, Michelle, but their granddaughters, Aubrey, Charlotte, and Morgan are the center of their attention.
Chris began his career with BumgardnerMorrison in 1973 as a staff accountant. He earned his way up the ranks, serving as a partner and managing partner. Chris recently announced his retirement, but will continue to serve as a CPA consultant and financial advisor.
Chris is very active in the community and has held many leadership roles with both professional and civic organizations. He is currently a member of the Victoria Chapter of the TSCPA, the TSCPA and AICPA, as well as the Knights of Columbus Council, Columbus Clubs, Serra Club and Our Lady of Victory Cathedral. Outside of the office and serving his community, Chris and his wife, Beverly, love spending time with their family – especially their grandchildren.
Dennis joined the firm in 1980 and currently serves as consultant, primarily focusing on taxation. In his current role, he provides tax services to his clients. Prior to joining the Bumgardner Morrison team, Dennis worked as a comptroller of a tire retailer in Athens, Ohio. Dennis earned his Bachelor of Business Administration at Ohio University. He serves on the boards of the Albert & Myrtle Gunn York Charitable Trust and the Albert and Mary Dick Charitable Trust. Dennis and his wife, Sherry, enjoy spending time with their three children, five grandchildren and pets. Dennis also loves a day on the golf course!
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David joined the firm in 2009 as director of wealth management. He assists the Victoria community with personal finance, business, estate and insurance planning, as well as portfolio construction and risk management needs. David has 18 years of experience in the financial services industry. Prior to joining BumgardnerMorrison, David worked in Dallas, Texas with 1st Global. David has passed the FINRA Series 7, 52, 63 and 65 exams and has earned the Accredited Investment Fiduciary (AIF®) designation as well as the CERTIFIED FINANCIAL PLANNER™ certification. He has also passed the Texas Resident Life and Health Insurance exam. David is a member of the Financial Planning Association.
David received his Bachelor of Business Administration from Texas A&M University and his Master of Business Administration from the University of Texas at Dallas. When he’s not in the office, David enjoys studying philosophy and theology, participating in sprint triathlons and practicing martial arts. David and his wife, Natalie, have three children, Bruce, Sophia and Luke.
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Andrew joined Bumgardner Morrison in 2014 as a CPA and supervisor and was promoted to manager in 2016. He is responsible for managing audit engagements, supervising and training audit staff members, reviewing working papers and preparing financial statements. He is also a member of the peer review team and travels throughout Texas to review audit workpapers from other firms. Andrew strives to provide excellent client service while creating a positive work environment for those around him. Prior to joining Bumgardner Morrison, he spent nearly three years at BKD, LLP in San Antonio as a staff auditor and audit senior, as well as two years at Holtzman Partners in Austin as an audit senior. Andrew has worked with a diverse client base and has extensive experience in financial institutions, employee benefit plans, non-profit organizations, and non-public companies. In addition, Andrew is very involved in the community and holds two positions on local non-profit boards. He is entering his second year as Treasurer for Golden Crescent Habitat for Humanity and is the President-Elect for the Victoria chapter of the Texas Society for CPA’s.
Andrew attended Texas A&M University, where he obtained his Master of Science and Bachelor of Business Administration in accounting. He is an avid Texas A&M fan and enjoys talking about all things Aggie. In his free time, he enjoys reading, attending Aggie football games, playing the guitar, traveling with his wife, Lacie, and chasing around their toddler, Eli.
Mike joined BumgardnerMorrison in 1983 and currently serves as partner to the CPA firm and as champion partner to the Wealth Management firm. He is responsible for audit, assurance and tax services and specializes in working with financial institutions and agriculture cooperatives. Mike has passed the FINRA Series 7 and Series 66 exams and holds the Texas Resident Life and Health Insurance license. He offers additional value to clients by providing wealth management services. He believes that every question deserves attention and an answer, and wants clients to be comfortable voicing concerns throughout the entire planning process.
Mike attended Southwest Texas State University, where he received his Bachelor of Business Administration in accounting. After graduation, he worked for a national CPA firm in Houston for two years. Professional organizations in which he is actively involved include the Texas Society of CPAs and the Victoria Chapter of the TSCPA. He has served as financial advisor for the Our Lady of Victory School advisory council, and coached basketball at OLV School for many years. Mike and his wife, Mary, love spending time with their family of seven children and ten grandchildren. He also enjoys sports, especially basketball, and his faith.
Jerome Kotzur joined Bumgardner Morrison in 1980 as an entry-level accountant and currently leads the firm as the managing partner. He is responsible for developing goals and objectives for the organization and leads the team in providing outstanding solutions to our clients in the area of wealth management, taxation, and attestation services. Kotzur, along with his executive team, oversees scheduling of the professional staff, quality control of services performed and development of long-range goals and objectives. Jerome holds a Certified Public Accountant license, Texas Resident Life and Health Insurance license and has passed the FINRA Series 7 and 66 exams. Promotion of a comprehensive approach to wealth management that includes tax advantage investing and solutions is at the forefront of the goals and objectives of the firm’s executive team.
Jerome earned his Bachelor of Business Administration in accounting from Texas A&M University. He is actively involved in professional organizations, such as the American Institute of Certified Public Accountants and the Texas Society of Certified Public Accountants. Since 1980, Kotzur has served in various capacities to church, civic and non-profit organizations throughout the area. Currently, Jerome spends his free time studying theology and Catholicism in conjunction with his enrollment in the Diocese of Victoria Diaconate Class of 2020. In his spare time, Jerome enjoys spending time with his family (especially his grandson, Nathan), attending Aggie football games, and reading. He and his wife, Tammy, have four children—all of which have completed college and are now pursuing their careers.