COVID-19 Tax Relief
Written by Jeffrey Davine
COVID-19 Related Legislation
As has been widely publicized, the federal government has enacted legislation that is designed to provide tax and other relief to employers as a result of the COVID-19 crisis. The tax relief is principally in the form of tax credits for payroll taxes that an employer is required to remit to the IRS when paying wages to its employees.
One of the laws enacted is the Coronavirus Aid, Relief, and Economic Security Act (the “CARES” Act). The CARES Act was signed into law on March 27th. It provides for a refundable payroll tax credit for employers whose businesses have been adversely affected by the Coronavirus.
Another statute enacted is the Families First Coronavirus Response Act (the “FFCRA”). It was signed into law on March 18th. The FFCRA provides small and midsize employers with refundable payroll tax credits to reimburse them for the cost of providing paid sick and family leave wages/salary to employees for an absence that is related to COVID-19.
The relief that is provided by both of these laws applies to both for-profit and nonprofit entities. Continue reading “COVID-19 Tax Relief”
COVID-19 Client Communication, Vol. 9
As COVID-19 continues to affect various policies and laws, our COVID-19 response team remains committed to providing you with the latest updates. Below please find our latest alerts. Feel free to read and share, and contact us if there is anything we can do to help you or your business maintain compliance in this ever-evolving situation. Continue reading “COVID-19 Client Communication, Vol. 9”
Public Spaces = Covered Faces, Part 2
Written by Susan Kohn Ross
City of Los Angeles Mayor Eric Garcetti has issued an order stating that all workers who are deemed exempt by virtue of their services must wear face coverings over their noses and mouths. These face coverings are to be just that, not medical grade, but rather scarves, bandanas and similar coverings. Any which are reusable are to be washed frequently, at least once a day. If single use, they must be properly discarded. Continue reading “Public Spaces = Covered Faces, Part 2”
Estate Planning in the Time of COVID-19
Written by Rachel Ronca and Seth W. Krasilovsky
Preparing and properly executing estate planning documents requires much care and consideration under “normal” circumstances. The COVID-19 pandemic, with its attendant shelter-at-home orders and social distancing guidelines, has made the estate planning process a logistically complicated necessity. Under the California Probate Code, the execution of estate planning documents requires a combination of notarization and witnessing. How can this be accomplished when non‑essential businesses are closed or working off‑site, and people are increasingly cautious of interactions outside of their homes? The Trusts & Estates department at MSK is prepared to assist you through the preparation and execution of your estate planning documents, allowing you peace of mind in these uncertain and difficult times. Continue reading “Estate Planning in the Time of COVID-19”
Charitable Contributions Show You CARE
CARES Act Tax Benefits for Charitable Contributions
Written by David Wheeler Newman
The CAREs Act – the recently enacted gigantic economic stimulus bill – contains two provisions designed to boost charitable giving with enhanced tax benefits. One provision will provide tax savings to donors making more modest gifts, while the other will benefit donors writing big checks. Continue reading “Charitable Contributions Show You CARE”
Los Angeles Makes Big Moves for Big Employers
Los Angeles Enacts New Emergency Paid Sick Leave Ordinance For Large Employers
Written by Jeremy Mittman and Stephen Franz
On April 7, 2020, Los Angeles Mayor Eric Garcetti approved the City Council’s Emergency Ordinance (“the Ordinance”) mandating employers of either (a) 500 or more employees within the City of Los Angeles; or (b) 2,000 or more employees within the United States, to offer Paid Sick Leave for COVID-19 related reasons. The Ordinance is effective April 7, 2020. The Ordinance is in response to the enactment of the federal Families First Coronavirus Response Act (“FFCRA”), which does not cover employers with more than 500 employees from its paid leave provisions. While the Ordinance is designed to supplement the FFCRA and provide paid sick leave for Los Angeles employees of larger employers (with some exceptions), it differs from the FFCRA in several respects, set forth below. Continue reading “Los Angeles Makes Big Moves for Big Employers”
Hague Service Convention Out of Reach for Foreign Parties Who Select California Arbitration Forum and Agree to Informal Notice of Suit Methods
Written by Tiana A. Bey and Theresa B. Bowman
Last week, in Rockefeller Technology Investments (Asia) VII v. Changzhou Sinotype Technology Co., Case No. S249923 (Cal. April 2, 2020), the California Supreme Court held that the Hague Service Convention does not apply to the state’s arbitration enforcement proceedings where transnational parties agree to informal notice of suit methods. The Court concluded that when these parties agree to submit to California arbitration, the California Arbitration Act ultimately governs service of process. And because the Act allows parties to enter into informal service arrangements, formal service of process procedures – including the Convention’s service mechanisms – are waived. This result should prompt foreign parties to re-evaluate the pros and cons of submitting to arbitration in California and agreeing to include informal notice of suit provisions in their underlying contracts.
The outcome presents a notable exception to the norms that foreign entities typically rely on in the Hague Convention. Generally, the Convention requires parties to serve notice of suit through each signatory’s Central Authority, which in turn carries out service consistent with their respective country’s domestic laws. As the U.S. Supreme Court held in Water Splash v. Menon, 137 S. Ct. 1504 (2017), additional methods of service are also allowable if the receiving country does not expressly prohibit it and if the domestic law of the forum country provides for it. One benefit of the Convention is that it protects international litigants from being hauled into a foreign court based on application of inconsistent and unfamiliar rules for providing them with notice of suit.
COVID-19 Client Communication, Vol. 8
Please find our latest alerts below surrounding COVID-19 and its effect on various policies and laws. Also, note that we have provided updates to the following alerts: “Shelter In Place Orders” and “Public Spaces = Covered Faces.”
As always, feel free to read and share these alerts, and contact us if there is anything we can do to help you or your business maintain compliance in this ever-evolving situation.
America CARES About Unemployment
DOL Issues Guidance on New CARES Act Unemployment Insurance Provisions
Written by Jeremy Mittman and Thea Rogers
Last week, the DOL issued two guidance letters (available here and here) to state workforce agencies (such as the California EDD) on the unemployment insurance provisions of the recently enacted CARES Act. The CARES Act, which has been discussed in prior blog posts at length (see, e.g. here, here and here), provides emergency assistance for certain individuals, families, and businesses affected by the COVID-19 pandemic. Most notably, the DOL guidance instructs state agencies on how to implement and operate two programs that were included as part of the CARES Act involving unemployment insurance benefits: the Pandemic Unemployment Assistance (PUA) program and the Federal Pandemic Unemployment Compensation (FPUC) program. Additionally, the federal government will provide 100% reimbursement to states that provide compensation to individuals beginning on their first week of unemployment (i.e., states which do not require a waiting week) and enter into an agreement with the DOL. Continue reading “America CARES About Unemployment”
Georgia Employers On the Hook
Georgia: Employers Must File Partial Unemployment Insurance Claims for Their Employees
Written by Jeremy Mittman and Carly Epstein
On March 16, 2020, Georgia’s Department of Labor (the “Georgia DOL”) became the first state to adopt a rule that requires employers to file partial unemployment claims for any week during which an employee (full-time or part-time) has his or her hours reduced or eliminated due to a partial or total company shutdown caused by the COVID-19 pandemic. Under Georgia law, partial unemployment claims apply to employees who will experience a reduction in hours or a temporary layoff. Employers must file partial unemployment claims online by visiting the Employer Portal, and must file partial claims for each weekly pay period during the temporary reduction/layoff. Continue reading “Georgia Employers On the Hook”
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