Various government agencies have provided resources to help workers and employers navigate COVID-19 related to workplace disruptions. Here we have compiled the most up to date information and resources as of Thursday, March 19th. Given the complexity of the situation, information and resources are changing daily. Check back for more updates as they come!
And as always, please give us a ring if you need assistance navigating this new territory.
Small Business Loans
The U.S. Small Business Administration (SBA) is working directly with the state of California to provide low-interest loans to small businesses and non-profits that have been severely impacted by the coronavirus. The SBA’s Economic Injury Disaster Loan program provides small businesses with loans up to $2 million to help overcome the temporary loss of revenue they are experiencing. Information on how to apply can be found here.
Tax Assistance
California Franchise Tax Board
Delayed Filing – State Taxes
Individual filers have a 60-day extension and can pay their taxes by June 15. The State Franchise Tax Board will also waive interest and any late filing or late payment penalties that would otherwise apply. Taxpayers claiming the special relief should write COVID-19 in black ink at the top of the tax return to alert FTB of the special extension period.
Internal Revenue Service
Delayed Filing – Federal Taxes
Treasury Secretary Steven Mnuchin announced that the Internal Revenue Service will give filers 90 days to pay income taxes due on up to $1 million in tax owed. During that three-month deferral period, taxpayers won’t be subject to interest and penalties.
Payroll Tax Credits - For employers administering the new Families First Coronavirus Response Act, they are eligible for payroll tax credits on a per employee basis. For Emergency Paid Sick Leave, the amount of the credit per-employee is limited to $511/day for employees that self-isolate or have coronavirus symptoms. Other reasons, the credit is capped at $200 per day, both capping at two weeks. The amount of the FMLA leave credit per-employee is limited to $200/day and $10,000 total for all calendar quarters. For more information see below under Families First Coronavirus Response Act.
Wages, Hours and Leave
The Department of Labor is providing information and clarification on COVID-19 related issues in the workplace. This includes guidelines on proper payment of exempt and non-exempt workers and job-protected leave under the Family and Medical Leave Act. Make sure you pay your workers correctly when the business need dictates cutting hours or closing. Wage & Hour claims can be costly to employers if they are found incorrectly paying their workers. Give us a call if you need guidance through a complicated situation.
Unemployment Insurance
Over the past week, a lot has changed for Unemployment Insurance (UI) benefits in California. Presently, workers with reduced hours/work closures or caring for children due to school closures are entitled to UI benefits through the state of California. Direct affected workers to the CA Employment Development Department to file for an UI claim. The 7-day waiting period to receive benefits is waived for COVID-19 affected workers. Check back as more changes are likely to unfold this week.
Employers can apply for the Unemployment Insurance (UI) Work Sharing Program if reduced production, services, or other conditions cause them to seek an alternative to layoffs. The Work Sharing Program helps employees whose hours and wages have been reduced:
Receive UI benefits.
Keep their current job.
Avoid financial hardships.
The Work Sharing Program helps employers:
Minimize or eliminate the need for layoffs.
Keep trained employees and quickly prepare when business conditions improve.
Avoid the cost of recruiting, hiring, and training new employees.
Discrimination
The Equal Employment Opportunity Commission (EEOC) has created What you Should Know About the ADA, the Rehabilitation Act and the Coronavirus. The EEOC widened the ADA protections to include COVID-19 related illness in the workplace. If you are unsure how to handle an ADA COVID-19 claim in your workplace, give us a call to discuss the guidelines, notices and options.
Families First Coronavirus Response Act (FFCRA)
The FFCRA has been signed into law by President Trump this week. This bill responds to the coronavirus outbreak by providing paid sick leave and free coronavirus testing, expanding food assistance and unemployment benefits, and requiring employers to provide additional protections for health care workers.
Small employers are affected by the Emergency Paid Sick Leave Act that requires businesses with fewer than 500 employees to give their employees paid sick leave summarized below.
When does this take effect? April 2, 2020 - December 31, 2020.
What are the reasons employees can take this leave? (a) to self-isolate because a diagnosis with coronavirus; (b) to obtain medical diagnosis or care if experiencing symptoms of coronavirus; (c) to comply with a recommendation or order by a public health official to not report to work because of a diagnosis of coronavirus or symptoms exhibiting coronavirus; (d) to care for a family member with coronavirus or symptoms exhibiting coronavirus; and (e) to care for a child whose school or place of care is closed due to coronavirus.
Which Employers are covered? Employers with 500 or fewer employees.
Which Employees are eligible? All employees, regardless of how long they have been employed.
How much leave are employees entitled to? Full-time employees will receive 80 hours, part-time employees will receive the average hours of a 2-week period. Employees are paid their full rate when taking this to self-quarantine or seek medical attention. Employees are paid at two-thirds their regular rate when taking this to care for an affected family member or to care for a child whose school has closed.
Small employers are affected by the amendments made to the Family and Medical Leave Act summarized below.
When does this take effect? April 2, 2020 - December 31, 2020.
When is leave allowed? For the 2020 calendar year, this allows eligible employees to take FMLA leave to care for them self or a family member due to exposure or symptoms of coronavirus or care for children whose school or place of care has been closed due to coronavirus.
Which Employers are covered? Employers with 500 or fewer employees.
Which Employees are eligible? Any Employee (full/part time) who has been employed for at least 30 calendar days.
How long is the leave? The maximum amount of leave time is 12-weeks in a 12 month period.
Are Employees paid during the leave? Yes. The first 10 days are unpaid after which employers must pay two-thirds of employee’s regular rate of pay for the number of hours the employee would otherwise normally work.
Employers providing the above leaves are eligible for payroll tax credits. For Emergency Paid Sick Leave, the amount of the credit per-employee is limited to $511/day for employees that self-isolate or have coronavirus symptoms. Other reasons, the credit is capped at $200 per day, both capping at two weeks. The amount of the FMLA leave credit per-employee is limited to $200/day and $10,000 total for all calendar quarters.
