On March 27, 2020, the Coronavirus, Aid, Relief and Economic Security (CARES) Act was passed and signed into law to help businesses and their employees during this time. The CARES Act included a number of provisions to assist businesses and employees; including, Federal Employer Social Security Tax Deferment, Paycheck Protection Program and the Employee Retention Credit.
For additional information on the programs under the CARES Act, please visit the IRS Coronavirus Tax Relief for Businesses and Tax-Exempt Entities.
Federal Employer Social Security Tax Deferment
This provision of the CARES Act allows employers to defer the Social Security tax liabilities from March 27, 2020 to December 31, 2020. This deferment is available to any employer. The employer is responsible for responsible for repayment as follows:
For additional information on this program, please visit the Federal Employer Tax Deferment.
Paycheck Protection Program
The SBA’s PPP loans are easy to qualify for, have a low interest rate (1%) and eligible for complete “forgiveness.” This means that you may not owe anything at the end of the eight (8) week period after your loan is funded. You can borrow up to 2.5 times your monthly payroll cost. However, if you received a PPP loan, you must apply for forgiveness within 90 days after the 8 week period ends.
In general, the loan must be used for:
The SBA has not finalized the guidance and criteria for full forgiveness of these loans. This is NOT an all inclusive list you must consult with your lender, the SBA as well as our resource page for updates.
For additional information on this program, please visit the SBA.GOV PPP Loan.
Economic Injury Disaster Loan (EIDL)
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories were able to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue. This loan advance will not have to be repaid.
For additional information on this program, please visit the SBA.GOV EIDL.
Employee Retention Credit
The Employee Retention Credit is a fully refundable tax credit for employers equal to 50% of qualified wages (including allocable qualified health plan expenses). The maximum amount of qualified wages is $10,000 for each employee for all calendar quarters; therefore, the maximum credit of $5,000 (50%) for wages paid to any employee.
This Employee Retention Credit applies to qualified wages paid after March 12, 2020, and before January 1, 2021.
For additional information on this program, please visit the Employee Retention Credit.
The U.S. Department of Labor (DOL) has created a resource page for workers and employers. The DOL’s Wage and Hour Division has posted these posters and guidance:
Families First Coronavirus Response Act (FFRCA)
In response to the COVID-19 outbreak, the U.S. Centers for Disease Control and Prevention (CDC) has issued:
The CDC has also created the following posters for download:
The CDC has also compiled a list of Phone Numbers for State and Local Health Departments. Keep up to date on CDC guidance for specific industries, latest updates, and resources on the Coronavirus Disease 2019 (COVID-19) main page.
The U.S. Equal Employment Opportunity Commission (EEOC) has created a landing page entitled What You Should Know About the ADA, the Rehabilitation Act, and COVID-19, which provides links to resources and guidance.
In response to COVID-19, the Office of Civil Rights for the U.S. Department of Health and Human Services (HHS) issued a bulletin regarding HIPAA Privacy and COVID-19.
The U.S. Occupational Safety and Health Administration (OSHA) has created a COVID-19 website for workers and employers that addresses the disease and provides guidance and other resources for preventing exposure to and infection with the virus.
Topics covered include:
OSHA has also issued the publication Guidance on Preparing Workplaces for COVID-19.
The U.S. Small Business Administration has issued guidance entitled SBA Disaster Assistance in Response to the Coronavirus, explaining how the SBA is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the coronavirus (COVID-19). Also see Coronavirus (COVID-19): Small Business Guidance & Loan Resources.