Tag: COVID-19

COVID-19

ERC vs. PPP

Written by Robert Lowe

If you didn’t get a Payroll Protection Program (PPP) loan before the SBA ran out of funds, there are still other benefits available under the CARES Act that was recently passed by Congress.

The CARES Act also provides for the Employee Retention Credit (ERC) which is a tax credit equal to 50 percent of the qualified wages paid to employees up to $5,000 per employee.   If you get a PPP loan, one big negative consequence is that you cannot claim the ERC.   So each business needs to make a determination of whether it’s better off with a PPP loan or ERC.   This is a complicated decision which will vary from business to business. Continue reading “ERC vs. PPP”

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COVID-19, Tax

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”

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COVID-19

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”

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COVID-19, Estate Planning, Trusts & Estates

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”

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COVID-19, Tax

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”

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COVID-19, Labor & Employment

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”

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COVID-19, Labor & Employment

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”

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COVID-19, Labor & Employment

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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COVID-19, Trusts & Estates

COVID Conversion

Written by Allan B. Cutrow

Unfortunately, the current health and economic crises have significantly and negatively affected asset values. However, these depressed asset values create significant planning opportunities to consider. One is the conversion of a traditional IRA into a Roth IRA.

Many investors often consider converting their traditional IRA into a Roth IRA as part of their overall retirement planning. Investments in a Roth IRA have the potential to not only grow tax-free (in the same manner as a traditional IRA), but also do not have required minimum distributions during the lifetime of the original owner and his or her spouse. Continue reading “COVID Conversion”

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