Department of Labor Answers Employer Questions About Unemployment Process

Note that all Sheehey guidance regarding COVID-19 is subject to change, as the legal landscape is evolving rapidly. Please note the date of publication for this bulletin, and be aware that things may have changed since then. Please check our COVID-19 landing page for the most up-to-date posts and contact us with any questions.

The Vermont Department of Labor is fielding an unprecedented number of unemployment claims, and many employers have questions about their role in the process. On April 9, 2020, the Department held a Virtual Town Hall to guide employers with laid off employees. Below are a few common questions addressed by the Department’s presentation.

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Small Business Administration Clarifies PPP Rules Under CARES Act

Note that all Sheehey guidance regarding COVID-19 is subject to change, as the legal landscape is evolving rapidly. Please note the date of publication for this bulletin, and be aware that things may have changed since then. Please check our COVID-19 landing page for the most up-to-date posts and contact us with any questions.

The CARES Act Paycheck Protection Program (“PPP”) provides loans to certain covered businesses. PPP borrowers are eligible for partial loan forgiveness. The CARES Act provided the general framework for the program and deferred to the SBA to create specific rules for the program to operate. The SBA released an interim final rule for borrowers and lenders under the PPP adding extra loan and forgiveness limits. The most notable limits are as follows.

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Labor Department Answers Questions About COVID-19 Leave Policies

Note that all Sheehey guidance regarding COVID-19 is subject to change, as the legal landscape is evolving rapidly. Please note the date of publication for this bulletin, and be aware that things may have changed since then. Please check our COVID-19 landing page for the most up-to-date posts and contact us with any questions.

The United States Department of Labor (DOL) has issued a detailed memo, in question and answer format, about the paid sick leave and the expanded family and medical leave contained in the recently enacted Families First Coronavirus Response Act (FFRCA), i.e., the second coronavirus (COVID-19) relief legislation. While the memo is mostly about the leave provisions themselves, it does contain some information about the employer tax credits that are based on the leave provisions.

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Explaining The Employee Retention Credit

Note that all Sheehey guidance regarding COVID-19 is subject to change, as the legal landscape is evolving rapidly. Please note the date of publication for this bulletin, and be aware that things may have changed since then. Please check our COVID-19 landing page for the most up-to-date posts and contact us with any questions.

The CARES Act provides for an Employee Retention Credit that eases employers’ burden of maintaining payroll as the COVID-19 crisis unfolds. If a business is negatively impacted by the COVID-19 Pandemic, then the business may be eligible for a credit to apply against federal payroll taxes.

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The CARES Act: Relief For Individuals And Tax Consequences Part II

Note that all Sheehey guidance regarding COVID-19 is subject to change, as the legal landscape is evolving rapidly. Please note the date of publication for this bulletin, and be aware that things may have changed since then. Please check our COVID-19 landing page for the most up-to-date posts and contact us with any questions.

As discussed in our previous post on this topic, the CARES Act provides for payments to individuals to help them stay afloat during this crisis.  In addition, it also waives or alters certain tax rules as discussed below.

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The CARES Act: Relief For Individuals And Tax Consequences

Note that all Sheehey guidance regarding COVID-19 is subject to change, as the legal landscape is evolving rapidly. Please note the date of publication for this bulletin, and be aware that things may have changed since then. Please check our COVID-19 landing page for the most up-to-date posts and contact us with any questions.

To help individuals stay afloat during this time of economic uncertainty, the government will send up to $1,200 payments to eligible taxpayers and $2,400 for married couples filing joints returns. An additional $500 additional payment will be sent to taxpayers for each qualifying child dependent under age 17 (using the qualification rules under the Child Tax Credit).

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Relief For Small Businesses: The Paycheck Protection Program

Note that all Sheehey guidance regarding COVID-19 is subject to change, as the legal landscape is evolving rapidly. Please note the date of publication for this bulletin, and be aware that things may have changed since then. Please check our COVID-19 landing page for the most up-to-date posts and contact us with any questions.

The CARES Act, passed by Congress and signed into law last week, provides extraordinary support for small businesses to help them weather the consequences of the coronavirus and COVID-19. The law expands the category of entities eligible for Small Business Administration (“SBA”) loans. In addition to a business qualifying as a “small business concern” under the Small Business Act, any business, certain nonprofit organizations, veterans organizations, or tribal businesses with 500 or fewer full and part-time employees are eligible to receive an SBA loan with generous forgiveness provisions. Even entities over 500 employees could qualify for a loan if they meet certain standards. Sole proprietors, independent contractors and those who are self-employed are also eligible.

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What The CARES ACT Means For Student Loans

Note that all Sheehey guidance regarding COVID-19 is subject to change, as the legal landscape is evolving rapidly. Please note the date of publication for this bulletin, and be aware that things may have changed since then. Please check our COVID-19 landing page for the most up-to-date posts and contact us with any questions.

On Friday, March 27, 2020 President Trump signed the CARES Act into law. Among its many provisions are several that pertain to student loan payments.

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Vermont Department of Labor Announces It Will Not Enforce Mini-WARN Act For Layoffs Caused By Effects of COVID-19

Note that all Sheehey guidance regarding COVID-19 is subject to change, as the legal landscape is evolving rapidly. Please note the date of publication for this bulletin, and be aware that things may have changed since then. Please check our COVID-19 landing page for the most up-to-date posts and contact us with any questions.

Ordinarily, under Vermont’s Notice of Potential Layoffs (the so-called “Mini-WARN Act”) requires qualifying employers to notify the State 45 days in advance of closing or laying off 50 or more employees over a 90-day period. It also requires qualifying employers to give 30 days’ notice to the affected employees and the chief elected or administrative official of the municipality where the layoff or closing occurs. [Read more…]

Updates on Federal Payroll Tax Credits Under the Families First Coronavirus Response Act

Note that all Sheehey guidance regarding COVID-19 is subject to change, as the legal landscape is evolving rapidly. Please note the date of publication for this bulletin, and be aware that things may have changed since then. Please check our COVID-19 landing page for the most up-to-date posts and contact us with any questions.

Updated March 25, 2020

The IRS, Department of Treasury and Department of Labor have issued updates in anticipation of formal guidance related to the recently passed Families First Coronavirus Response Act (“Act”). Expect more guidance related to tax credits and small employer exemptions later this week. Note this post does not go into detail about eligibility for either type of paid leave. See our previous post describing the new Emergency FMLA Leave and Paid Sick.

Background

The Act provided paid sick leave and expanded family and medical leave for COVID-19 related reasons and created the refundable paid sick leave credit and the paid child care leave credit for eligible employers. Eligible employers are businesses and tax-exempt organizations with fewer than 500 employees that are required to provide emergency paid sick leave and emergency paid family and medical leave under the Act. Eligible employers will be able to claim these credits based on qualifying leave they provide between the effective date (April 2, 2020) and December 31, 2020. Equivalent credits are available to self-employed individuals based on similar circumstances. [Read more…]