Homeland Security Updates Due to Covid-19
Homeland Security Updates Due to Covid-19
I-9 Compliance
The Flexibility for I-9 compliance for remotes workers & workplaces is extended to November 19. You can find more information about it here: Form I-9 Requirements Flexibility Extended for an additional 60 Days
Employment Authorization Documents
Some Employment Authorization Documents (EADs) are delayed – particularly those related to asylum seekers. So, a Form I-767 can be used as a List C #7 EAD. Here is a link if you need further information: Employment Authorization Document (EAD) Delays Due to COVID-19
E-Verify
If you use E-Verify and have a tentative non-confirmation (TNC) on an employee, you must take action on that TNC within 10 government working days. The Dept. of Homeland Security is planning to begin enforcing the TNC legal requirements starting on November 5. You can find more information about it here: E-Verify Requirement – Employer Action Required on Tentative Non-confirmations within 10 Federal Government Working Days
FMLA & The Hybrid School Calendar
The DOL has addressed the expanded FMLA and the hybrid school calendar, and related to choosing an all-online option if available.
- If your child is on a hybrid plan, then expanded intermittent FMLA is available for the days they are learning at home.
- If your employee has opted to go entirely online despite school being open (hybrid or completely), the DOL says you can use expanded FMLA on the days your child would be doing online learning anyway because the school is “closed” to that family on those days of online learning.
The new guidance is below:
· My child’s school is operating on an alternate day (or other hybrid-attendance) basis. The school is open each day, but students alternate between days attending school in person and days participating in remote learning. They are permitted to attend school only on their allotted in-person attendance days. May I take paid leave under the FFCRA in these circumstances? (added 08/27/2020)
Yes, you are eligible to take paid leave under the FFCRA on days when your child is not permitted to attend school in person and must instead engage in remote learning, as long as you need the leave to actually care for your child during that time and only if no other suitable person is available to do so. For purposes of the FFCRA and its implementing regulations, the school is effectively “closed” to your child on days that he or she cannot attend in person. You may take paid leave under the FFCRA on each of your child’s remote-learning days.
· My child’s school is giving me a choice between having my child attend in person or participate in a remote learning program for the fall. I signed up for the remote learning alternative because, for example, I worry that my child might contract COVID-19 and bring it home to the family. Since my child will be at home, may I take paid leave under the FFCRA in these circumstances? (added 08/27/2020)
No, you are not eligible to take paid leave under the FFCRA because your child’s school is not “closed” due to COVID–19 related reasons; it is open for your child to attend. FFCRA leave is not available to take care of a child whose school is open for in-person attendance. If your child is home not because his or her school is closed, but because you have chosen for the child to remain home, you are not entitled to FFCRA paid leave. However, if, because of COVID-19, your child is under a quarantine order or has been advised by a health care provider to self-isolate or self-quarantine, you may be eligible to take paid leave to care for him or her. See FAQ 63.
Also, as explained more fully in FAQ 98, if your child’s school is operating on an alternate day (or other hybrid-attendance) basis, you may be eligible to take paid leave under the FFCRA on each of your child’s remote-learning days because the school is effectively “closed” to your child on those days.
· My child’s school is beginning the school year under a remote learning program out of concern for COVID-19, but has announced it will continue to evaluate local circumstances and make a decision about reopening for in-person attendance later in the school year. May I take paid leave under the FFCRA in these circumstances? (added 08/27/2020)
Yes, you are eligible to take paid leave under the FFCRA while your child’s school remains closed. If your child's school reopens, the availability of paid leave under the FFCRA will depend on the particulars of the school’s operations. See FAQ 98 and 99.
Sanitation Guidelines
Protecting the health and safety of employees during the COVID-19 pandemic outbreak is essential to ensure the spread of the virus is stopped and it does not spread within the workplace. The emergence of the COVID-19 virus has created a situation where every printing operation needs to institute a cleaning and disinfection program that will minimize the possibility of an employee becoming infected. The information presented below is based on the guidelines issued by the Center for Disease Control for businesses.
Sanitation FAQs
Paycheck Protection Program
The Paycheck Protection Program (“PPP”) authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. All loan terms will be the same for everyone. The loan amounts will be forgiven as long as: The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and Employee and compensation levels are maintained. Payroll costs are capped at $100,000 on an annualized basis for each employee. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
Loan payments will be deferred for 6 months. Read more in the fact sheet below
Paycheck Protection Application
Borrower Information Fact Sheet
Covid19: Resources and Links
Printing Industries of America Covid-19 Resources for Printers
CDC Guidance:
OSHA Guidance:
Cares Act Summary
Letters for Essential Businesses
Maryland Resources:
Closure of Non-essential businesses
Small Business Relief Efforts
SBA's Economic Injury Disaster Loan Program
Maryland Small Business COVID-19 Emergency Relief Loan Fund
Virginia Resources:
Virginia Department of Labor Guidance
Virginia Covid-19 Resources
Virginia Department of Health
Letters for Essential Businesses
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Below please find two letter templates, one for your employees and one for your suppliers in case they are questioned in regards to whether or not they are involved with an essential business. Feel free to alter in any way you choose, this is just suggested copy.
ESSENTIAL BUSINESS ACTIVITY
Date
To Whom It May Concern:
The bearer of this document is an employee of [company name]. The company is a printing and packaging company that supports and/or serves Essential Businesses. As such [company name] conduct Essential Activities and is critical to the operations of Essential Businesses. Pursuant to the Governor’s order of March 23, 2020, we are “needed to maintain continuity of operations of the federal critical infrastructure sectors” and thus exempt from closure.
[Company Name] applies best practices in its effort to limit the spread of COVID-19. As possible, employees are required to follow the latest guidelines for social distancing and personal hygiene. Where possible, employees are working remotely. Only those employees whose job requires tools, machinery, etc. are working onsite. In some cases, an employee may be required to work on site temporarily such as to process payroll, administer cash receipts and cash disbursements which are consider Minimum Basic Operations required for the Company to continue operations in support of Essential Businesses.
If you have any questions, please contact:
Officer Name
Company Address
Telephone Number
ESSENTIAL BUSINESS ACTIVITY- supplier
Date
To Whom It May Concern:
The bearer of this document (NAME OF SUPPLIER) is a supplier to [company name) and provides us with materials necessary to manufacture our crucial products. It is essential that we continue to receive these materials on a timely basis in order to fulfill our customer’s need in these critical times. Without the products provided by SUPPLIER, we will be hard pressed to meet the needs of our clients who are doing work that is necessary in the fight against COVID-19
We have been assured that [Company Name] applies best practices in its effort to limit the spread of COVID-19. As possible, their employees are required to follow the latest guidelines for social distancing and personal hygiene.
If you have any questions, please contact:
Officer Name
Company Address
Telephone Number
Virginia Response FAQ
SOME OF THE FREQUENTLY ASKED QUESTIONS ADDRESSED BY THE GOVERNOR’S OFFICE REGARDING GOVERNOR NORTHAM’S EXECUTIVE
ORDER 53 ISSUED MARCH 23, 2020
When does this order go into effect? What areas of the state are covered?
The order is in effect from Tuesday, March 24, 2020 at 11:59 PM until Thursday, April 23 at 11:59 PM. It applies to the entire Commonwealth of Virginia.
Will this order be changed?
Governor Northam, in consultation with State Health Commissioner Oliver, may adjust this order or issue new orders as needed, given the quickly-changing public health situation.
Can I leave my house?
Yes. However, Governor Northam is urging Virginians to limit all non-essential travel outside the home, if and when possible. If you choose to go to the park, for a walk, or exercise outside, please practice strict social distancing and keep six feet apart from others. All public and private gatherings of more than 10 people [PGAMA Note: Employment settings are not considered gatherings for purposes of Executive Order 53] are banned.
Are you limiting interstate travel:
No. Our roads and highways will remain open to move essential personnel and critical supplies.
Are there restrictions for any other categories of business?
All other categories of business [PGAMA NOTE: We believe Virginia printers fall in this classification for purposes of Executive Order 53] should utilize teleworking as much as possible. Where telework is not feasible, such businesses must adhere to social distancing recommendations, enhanced sanitizing practices on common surfaces, and other appropriate workplace guidance from state and federal authorities while in operation.
The following sources provide workplace guidance for operations that remain open:
- Virginia Department of Labor and Industry Guidance:
https://www.doli.virginia.gov/wp-content/uploads/2020/03/Coronovirus-Hazard-Alert.pdf
Do I still have to pay taxes?
Yes. Businesses impacted by COVID-19 can also request to defer the payment of state sales tax due, March 20, 2020, for 30 days. When granted, businesses will be able to file no later than April 20, 2020 with a waiver of any penalties.
The Virginia Department of Taxation has extended the due date of payment of Virginia individual and corporate income taxes. While filing deadlines remain the same, the due date for individual and corporate income tax will now be June 1, 2020. Please note that interest will still accrue, so taxpayers who are able to pay by the original deadlines should do so.
I have to lay off employees. Will I be penalized when they apply for unemployment benefits?
Regional workforce teams have been activated to support employers that slow or cease operations. Employers who do slow or cease operations will not be financially penalized for an increase in workers requesting unemployment benefits.
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Covid-19: The Maryland Response
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COVID-19 – Maryland Response – PGAMA FAQ & Resources March 24th, 2020 _____________________________________________________________________
1. If someone is showing mild symptoms of illness and you’ve asked them not to work out of an abundance of caution, what benefits are available to help them maintain their income?
Federal Law: Emergency legislation, entitled H.R. 6201; entitled, Families First Coronavirus Response Act was signed into law today (3.19.20). The new law provides paid sick leave, free coronavirus testing, expands food assistance and unemployment benefits, and requires employers to provide additional protections for health care workers.
• Emergency paid sick leave: Small businesses will be required to provide two (2) weeks of paid sick leave to an employee that: o Has a current diagnosis of COVID–19, or is under quarantine at the instruction of a health care provider, employer, or a local, State, or Federal official. o Is engaged in caregiving for an individual who has a current diagnosis of COVID–19 or is under quarantine. o Is engaged in caregiving, because of the COVID–19-related closing of a school or other care facility or care program, for a child or other individual unable to provide self-care. o This does not apply to businesses with over 500 people and small businesses with under 50 employees may avoid the requirements if they “would jeopardize the viability of the business as a going concern”. o These provisions would expire at the end of calendar year 2020. • Family medical leave: The bill expands the Family and Medical Leave Act to include leave needed to care for an employee’s child whose school or care provider is closed due to COVID-19. o This leave can be used by employees who have been employed by their current employer for at least 30 days. This applies to any private sector employers under 500 employees.
o The first 10 days of FMLA leave may be unpaid — beyond that time employers must compensate employees for the remainder of FMLA-leave taken (up to 10 work weeks) at 2/3 of their regular rate of pay. o FMLA paid leave is capped at $200 per day and $10,000 per employee total. • Tax credits for paid family and medical leave: The legislation has a refundable tax credit equal to 100% of paid family or medical leave wages paid by the small business each quarter. o The credit can be used against the employer’s social security taxes and applies to amounts paid to employees who are sick or quarantined. A smaller credit applies to amounts paid to employees caring for a family member or for a child whose school or place of care has been closed. o Individuals who are self-employed also qualify for refundable credits. The tax credits would offset not just the 6.2% Social Security portion of payroll taxes on affected wages, but also the separate 1.45% Medicare tax. Limits apply. • Emergency unemployment stabilization o Provides $1 billion for emergency grants to states for activities related to processing and paying unemployment insurance benefits. o $500 million will be used to provide immediate additional funding to all states for staffing, technology, systems, and other administrative costs, so long as they met basic requirements about ensuring access to earned benefits for eligible workers. Those requirements are: ▪ Require employers to provide notification of potential unemployment insurance eligibility to laid-off workers. ▪ Ensure that workers have at least two ways (for example, online and phone) to apply for benefits. ▪ Notify applicants when an application is received and being processed and if the application cannot be processed, provide information to the applicant about how to ensure successful processing. o $500 million will be reserved for emergency grants to states which experienced at least a 10% increase in unemployment. o States that experience an increase of 10% or more in their unemployment rate (over the previous year) and comply with all the beneficiary access provisions will qualify for 100% funding for Extended Benefits. o Extended benefits are triggered when unemployment is high in a state and provide up to an additional 26 weeks after regular unemployment insurance
benefits exhausted. This section also suspends the financial penalty for states that waive the usual one-week waiting period for benefits. Maryland Law: Governor Larry Hogan signed emergency legislation (HB1663) passed by state lawmakers during the final days of the 2020 Legislative Session. The legislation ensures protections and assistance for Marylanders affected by COVID-19. The COVID-19 Public Health Emergency Protection Act allows the governor to prohibit cost-sharing by insurance carriers for COVID-19 testing, establish or waive telehealth protocols and require insurers to cover a COVID-19 vaccine when one is available. Other provisions of the law provide: • The Sec. of Labor may authorize employment benefits for employees, who need not leave the employ of their company, if: o (1) the business temporarily ceases operations, o (2) the individual is in temporary quarantine, or o (3) the individual leaves employment due to risk of exposure or to care for a family member. 2. If your business has remained open but you have people in a high-risk group that have decided to shelter at home to protect themselves or high risk loved ones, are there benefits available to help them maintain their income? See above.
3. What is the criteria for getting back to normal? We really don’t know the true number of people affected because so many experience mild to no symptoms and we’re only testing those we meet very specific criteria. I read an article that we’ve shut everything down without using data, so how do the authorities know when it’s safe to reopen?
The State of Maryland is using a combination of data gathered by the CDC and the Maryland Department of Health to determine public risks and safety. As indicated by the health experts and elected leaders, the numbers are projected to be at its peak this week. Due to the uncertainties, it is difficult for anyone to predict when it will be considered “safe” for nonessential businesses to re-open.
4. We’ve told our folks that they are considered essential and we plan to remain open, they’re asking for some type of letter they can show if they’re stopped by police on the way to work. (I told them he has not ordered shelter in place but they’re still concerned.)
At this time, Governor Hogan has not issued an Executive Order for statewide shelter. However, as expressed in today’s press conference (on 3.23.20) and his recent Executive
Order, all businesses that are considered “non-essential” to the COVID-19 response are mandated to close at 5 pm, Monday, March 23rd.
The Office of Legal Counsel issued a letter of interpretation for guidance listing sectors (and industries) that are considered “essential” and therefore remain open. The list does not fully list all these types of businesses and it’s advised to review the guidelines produced by the Department of Homeland Security.
For more information, visit: https://governor.maryland.gov/2020/03/23/governorhogan-announces-closure-of-all-non-essential-businesses-175-million-reliefpackage-for-workers-and-small-businesses-affected-by-covid-19/
5. Will there be any funding available to assist us with payroll?
Yes. The Secretaries of Commerce and Labor announced small business and labor relief efforts. Details can be found at https://businessexpress.maryland.gov/ Relief programs include grants, unemployment funding, and zero and low-interest small business loans.
o If you are a Maryland-based business impacted by the Coronavirus with under 50 full- and part-time employees, or a Maryland manufacturer, check out the programs below to see if you qualify for assistance.
▪ Maryland Small Business COVID-19 Emergency Relief Loan Fund - This $75 million loan fund (for for-profit businesses only) offers no interest or principal payments due for the first 12 months, then converts to a 36-month term loan of principal and interest payments, with an interest rate at 2% per annum.
▪ Maryland Small Business COVID-19 Emergency Relief Grant Fund - This $50 million grant program for businesses and non-profits offers grant amounts up to $10,000, not to exceed 3 months of demonstrated cash operating expenses for the first quarter of 2020.
Small Business Administration – Economic Injury Disaster Loan Program: The State of Maryland has received official designation from the U.S. Small Business Administration (SBA) for its Economic Injury Disaster Loan (EIDL) program, which provides low-interest federal disaster loans for small businesses impacted by the COVID-19 pandemic.
o According to the SBA, the loans will help alleviate financial strain and allow businesses to: o pay bills, o payroll, and o accounts payable, with long-term payments stretching up to 30 years.
o The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support
to small businesses to help overcome the temporary loss of revenue they are experiencing. For more information, visit: https://www.sba.gov/funding-programs/disasterassistance
6. We will be laying off some of our staff. What resources are available for us to assist our employees? Yes.
• Workforce Development and Adult Learning COVID-19 Layoff Aversion Fund: The State has launched the new COVID-19 Layoff Aversion Fund, which is designed to support businesses undergoing economic stresses due to the pandemic by preventing or minimizing the duration of unemployment resulting from layoffs.
o The award (up to $50,000 per applicant), will be a quick deployable benefit and customizable to the specific needs of your business to minimize the need for layoffs.
o Labor is accepting grant applications from small businesses for awards from now through 30 days after the State of Emergency ends (subject to funding availability).
o The fund can provide: ▪ Strategies to reduce or eliminate the need for layoffs in the small business community. ▪ Training or professional development opportunities for employees to avoid layoffs; ▪ Paying for liability insurance for restaurants that convert to delivery while under emergency circumstances; ▪ Cover the costs of cleaning/sanitization services so that small businesses are able to keep employees at work on site, but only if a frequent deep cleaning to prevent exposure occurred; ▪ Supporting businesses that take advantage of the Unemployment Insurance Work Sharing Program by supplementing the employee’s income and benefits; ▪ Purchasing software or programs that an employee would need to use from home; and ▪ Purchasing remote access (ex. computers, printers, etc.) equipment to allow employees to work remotely from home versus being laid off.
o For more information, visit: http://www.labor.maryland.gov/employment/covidlafund.shtml
7. Would they benefit in just applying for unemployment benefits right away on their own?
An employee would have to file for unemployment benefits individually – no other person or entity are permitted to do it for them. In Maryland, unemployment benefits are made immediately upon employee filing an application. Employees laid off will be paid that same day.
8. Operating capital: Will there be any funding to assist us in paying leases or purchasing raw materials (paper, consumables, etc.)?
Maryland Small Business COVID-19 Emergency Relief Loan Fund: This COVID-19 Emergency Relief $75M Loan Fund offers working capital to assist Maryland for-profit small businesses disrupted operations due to COVID-19. Loan assistance is intended to provide interim relief complementing actions with its bank, business interruption insurance, and financial partners.
GENERAL TERMS AND CONDITIONS o Loans up to $50,000 (not to exceed three months of cash operating expenses) open to Maryland businesses impacted by the COVID-19 with fewer than 50 employees. o 0% for the first 12 months, and 2% for the remaining 36 months. o Deferral of any payments for the first 12 months, and straight amortization beginning in the 13th month through the 36th month. o Business must be established prior to March 9, 2020 and in good standing. o Applicants must have employees on their payroll for whom they have had payroll taxes withheld (i.e. W-2 employees). o Two years of historical financial statements and most recent interim statement to benchmark revenue against (if available). o Six month pro forma of estimated lost revenue or other documented loss evidence. o Minimum personal credit score of 575. o No collateral requirements. o Eligible uses include: working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses that occur in the ordinary course of operations.
The business must demonstrate financial stress or disrupted operations, which may include but are not limited to: o Notices from tenants closing operations and not paying rent caused by loss of income. o Notice of inability to pay rent or make loan payments due to reduced sales, suspended operations. o Increased cost related to COVID-19 prevention measures. o Notice of disrupted supply network leading to a shortage of critical inventory or materials. o Other circumstances subject to review on a case by case basis.
Maryland Small Business COVID-19 Emergency Relief Grant Fund: This COVID-19 Emergency Relief $50M Grant Fund offers working capital to assist Maryland small businesses and nonprofits with disrupted operations due to COVID-19. Grant assistance is
intended to provide interim relief complementing actions with its bank, business interruption insurance, and financial partners.
GENERAL TERMS AND CONDITIONS o Grants up to $10,000 not to exceed 3 months of cash operating expenses for Maryland businesses and nonprofits impacted by the COVID-19 with 50 or fewer employees. o Must be established prior to March 9, 2020. o Business must be in good standing. o Applicants must have employees on their payroll for whom they have had payroll taxes withheld (i.e. W-2 employees). o Annual Revenues of the business or nonprofit not to exceed $5 million as evidenced by Financial Statement or other financial documentation. o Business or nonprofit is expected to seek longer term funding through its bank, SBA, or other source. o Eligible uses include: working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses that occur in the ordinary course of operations.
The business or nonprofit must demonstrate financial stress or disrupted operations, which may include but are not limited to:
o Notices from tenants closing operations and not paying rent caused by loss of income. o Notice of inability to make loan payments due to reduced sales, suspended operations. o Increased cost related to COVID-19 prevention measures. o Notice of disrupted supply network leading to shortage of critical inventory or materials. o Other circumstances subject to review on a case by case basis.
9. Trying to get an idea on terms and length of any potential funds (loans) available. – See above.
Your Financial Health During Covid-19
General comments are provided below (specific planning should be based on your company’s distress level, financial needs, resources and access to capital).
Q: Given the swift adverse effect on my business, should I borrow $$ from other sources (other than this forgivable loan) to keep my employees?
A: NO. The federal government will be providing forgivable loans (Paycheck Protection Program) totaling 2.5 months of your payroll costs, based on average monthly payroll costs for the 1-year period before the loan, times 2.5.
Payroll costs are defined as gross pay up to 100k per employee plus state and local payroll taxes, group health benefits and premiums.
Q: When will the federal government provide cash relief for my company?
A: It is expected to be several weeks after the Act is signed (3/27/20) before a same day application/cash transfer can take place.
Q: Will 100% of the loan be forgiven?
A: Possibly, as long as you retain the same level of (FTE) employees as before the CV crisis and not reduce salaries by more than 25% (excluding employees with salaries over 100k/year). If you have less (FTE) employees by June 30, 2020, or have cut pay by more than 25%, then the amount forgiven will be a pro-rata % of the loan (for example…if you receive a $1 mil loan and retain only 80% of employees, then 80%, or 800k will be forgiven).
Details:
-the amount of the loan to be forgiven is based on the lesser of, subsequent expenditures for payroll costs, interest, rent and utilities for 8 weeks after the loan date, or the loan amount.
-the calculation for change in # of (FTE) employees is based on a comparison of (FTE) employees for the period 2/15/19 through 6/30/19 or the period 1/1/20 through 2/29/20, then compared with the period 2/15/20 through 6/30/20 or 30 days after the CARES act is signed: 4/26/20 through 6/30/20 (which allows a benefit for rehires).
- Repayment terms on the balance not forgiven, if any, are up to 10 years, maximum of 4% interest, no payment for 6 months to 1 year, no prepayment penalties, no collateral and no personal guarantees.
Q: How do I apply for this federal government forgivable loan?
A: These are SBA funded loans to be administered and applied for through your bank. It is expected that the application and funding will occur on the same day, several weeks after the CARES act is signed by the President (3/27/20).
Q: Should I pursue loans and/or grants being offered by my state government or loans that currently are offered through the SBA?
A: Perhaps, but first assess the amount of federal government funding which may be forgiven then pursue other options if there are remaining needs. Most of the state and SBA “disaster funding loans”, at this time, are subject to normal lending criteria, fixed repayment terms, interest and personal guarantees if the loan is over 200k. There are state grants available, but at much smaller amounts.
Q: What should I be doing in the meantime before federal government $$ is available to my company?
A: Suggest downsizing as much as possible to meet your cash inflows while also gauging prospective sales. Also limit cash payments wherever possible to vendors and for all non-essential items.
Q: Should I furlough employees while awaiting the forgivable loans?
A: That’s a close call. It is helpful to know that the CARES Act provides for significant increases in unemployment benefits, so the pain to furloughed employees will be lessened and possibly eliminated. It also may be beneficial to rehire furloughed employees up to 30 days after the Act is signed (by 4/27/20) to maximize the loan forgiveness.
Q: Are banks and other note holders offering any help with payments, if I ask?
A: Yes, most will provide 60 to 90 days of interest only and some are providing “forbearance” (no payment at all) for 60 to 90 days, though the interest will be added to the principal balance.
Q: How should I plan for the “other side of the curve” when activity is expected to pick back up?
A: LIQUIDITY, LIQUIDITY, LIQUIDITY
Your goal is to maximize cash and credit now, in order to be able to fund working capital for inventory and labor when the business comes back.
Q: Any other helpful provisions in the CARES act for my business?
A: Yes
1)If your company is losing more than 50% of revenue or has to close because of the crisis, then special payroll tax reduction provisions and deferrals are available when you reopen.
2)Tax losses in 2018, 2019 or 2020 can now be carried back 5 years and without a limitation against income
3)Building improvements can be expensed (fully depreciated in year incurred) and prior year tax returns can be amended
4)C-Corp estimated taxes for 2020 are deferred until 10/15/20
Q: How do I navigate the myriad of financing options, loan applications and planning considerations?
A: Feel free to contact us. We are here to help.
The government will be issuing further guidance, corrections and clarifications in the coming weeks and months,
so stay tuned for further updates.
FAQ: Coronavirus & HR
FREQUENTLY ASKED QUESTIONS ABOUT HR AND CORONAVIRUS SUMMARY OF THE FAMILIES FIRST CORONAVIRUS RESPONSE ACT
New laws addressing critical human resources issues have just been enacted in response to the coronavirus (COVID-19) pandemic. This legislation is called the Families First Coronavirus Response Act.
The new laws include refundable tax credits for employers that are required to offer emergency FMLA or paid sick leave.
WHAT DOES THE NEW EMERGENCY FMLA FEDERAL LEGISLATION REQUIRE?
The new legislation in response to coronavirus—which applies to businesses with FEWER than 500 employees—requires:
• Twelve weeks of job protection under the revised Family and Medical Leave Act
• The leave applies when o An employee is unable to work or telework in order to care for a minor child if the child’s school or child care has closed or is unavailable due to a public health emergency
• The first 10 days of leave can be unpaid. o The employee can use PTO (vacation, sick, and/or personal). o Employers cannot require use of PTO for this leave.
• The remaining FMLA leave MUST be paid by the employer as follows: o Pay should be at 2/3 of the employee’s regular rate. o Number of hours paid should be those that the employee would be otherwise scheduled to work. o Pay can be capped at $200 per day. o Pay can be capped at $10,000 total.
• The employee has job protection to return to their position or an equivalent position after their leave expires or their need for leave is resolved.
• Exception to job protection for employers with fewer than 25 employees: o If the employee’s position has been eliminated due to operational changes resulting from a public health emergency, the employer does not have to provide a position for the employee at the end of their leave.
CRITICAL INFORMATION:
For companies with fewer than 50 employees:
• If the required leave provisions of this new legislation will jeopardize the viability of the company’s business, the company can be excluded from the requirements of this Emergency FMLA legislation.
WHAT DOES THE NEW EMERGENCY FEDERAL PAID SICK LEAVE LEGISLATION REQUIRE?
The new legislation in response to coronavirus—which applies to businesses with FEWER than 500 employees—requires:
• All full-time employees are entitled to 80 hours of paid sick time.
• All part-time employees are entitled to paid sick time hours equivalent to the typical number of hours they are scheduled to work in a two-week time period.
• This sick time may be used by employees in the following circumstances: o Subject to a federal, state, or local quarantine or isolation order related to COVID19 o Following the advice of a healthcare provider to self-quarantine because of COVID-19
