Each week, we’ll be compiling the top headlines and updates regarding the COVID-19 pandemic and how it impacts your company and workforce.
April 1: FFCRA Leave Requirements in Effect
The highly anticipated effective date for employers to implement new leave requirements under the Families First Coronavirus Response Act has arrived.
Both the IRS and US Department of Labor have released helpful guidance regarding Emergency Paid Sick Leave and Expanded Family and Medical Leave, and the associated tax credits.
If you have questions about your obligations as an employer or logistics of the provisions, we recommend referencing the DOL's Families First Coronavirus Response Act: Questions & Answers page for the most accurate and up to date information. Pro tip: use command+F on Mac or ctrl+F on Windows to search the comprehensive page for questions and keywords you are looking for.
April 3: Paycheck Protection Loans Available
Lenders are now accepting applications from small businesses for Paycheck Protection Program loans. The $349 billion allocated to fund these 100% forgivable loans will go fast.
We recommend getting in touch with your bank and gathering documentation ASAP if you are hoping to apply, as loans are offered on a first-come-first-served basis. All applicants are required to submit SBA Form 2483 and payroll information to their lender.
Download our fact sheet for more information about Payroll Protection Program loans
Employee Retention Credit Available Under the CARES Act
Businesses not able to obtain a loan under the Paycheck Protection Program have another tool available to them— Employee Retention Tax Credits under the CARES Act.
The tax credit is equal to 50% of qualified wages paid up to $10,000 per employee during the Coronavirus. Small businesses who have taken a Paycheck Protection loan are not eligible to receive the credit.
If you are interested in receiving these credits, we recommend visiting the IRS FAQ page.
Economic Impact Payments Will Begin Distribution in April
This week the Treasury Department and IRS announced that distribution of economic impact payments under the FFCRA will begin in the next three weeks. For most US residents, there is no action needed at this time.
The IRS will calculate payments using information from your 2019 tax return. If you have not filed for 2019 yet, your 2018 return will be used instead. Payments will be deposited directly into your bank account stated on your return. If you do not have direct deposit information on file with the IRS, the Treasury Department is working to develop a web-based portal for individuals to provide their banking information to the IRS online instead of waiting to receive a check by mail.
Read more about economic impact payments here.
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