03/23/2020
🔴 UPDATE FOR BUSINESS OWNERS 🔴
Sorry this is long, but the COVID-19 situation is evolving fairly quickly, so I'm summarizing info about updates that may affect your business:
1️⃣ The Families First Coronavirus Response Act
First, this past Wednesday, the "Families First Coronavirus Response Act" became a law, providing for many new emergency leave under the Family Medical Leave Act as well as emergency paid sick leave for employees across the nation.
Here is a link with details & additional info: https://bit.ly/COVID19FamiliesFirst
Also, today at noon our colleagues at Clark Hill Law will be having another free webinar to discuss what employers need to know about this law and how it affects you.
Register here: https://bit.ly/ClarkHillWebinar
2️⃣ SBA Loans
NJ businesses may be eligible for Economic Injury Disaster Loans, working capital loans, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster.
These loans are intended to assist through the disaster recovery period. To be eligible for EIDL assistance, NJ based small businesses or private non-profit organizations must have sustained economic injury & be located in a disaster declared county or contiguous county; all New Jersey counties are now eligible.
For additional info: https://www.sba.gov/disaster-assistance/coronavirus-covid-19 -header-21
3️⃣ Expected Rise in Hacking and Cyber Crime
As more people are working from home without the same virus and breach protections they would have at work, the Cybersecurity and Infrastructure Security Agency (CISA), part of the U.S. Department of Homeland Security, told individuals to be on high alert and vigilant about scams related to COVID-19.
For additional info: https://bit.ly/COVID-19Cyber
4️⃣ Federal Stimulus
The Federal Stimulus failed to pass at the Senate yesterday, but the good news is that it seems that there is bipartisan support for the provisions designed to help small businesses. The stimulus would provide for small-business loans worth up to $349 billion overall, capped at $10 million per loan, for use in maintaining payroll, providing paid leave and payments for rent, mortgages, utilities and other obligations; loan amounts used for such costs would be forgiven.
While not part about this stimulus, there is an approach to address business interruption that is gathering steam as well. This proposal would establish a financial facility, administered by a Special Master and housed within the Department of Treasury, that would compensate businesses for business interruption resulting from the outbreak.
5️⃣ NJ Executive Order #107 ordering the closure of all "non-essential" businesses
The full Executive Order states, in part that 'All businesses or non-profits in the State, whether closed or open to the public, must accommodate their workforce, wherever practicable, for telework or work-from-home arrangements. For purposes of this order, "telework" means the practice of working from home or alternative locations closer to home through the use of technology that equips the individual to access necessary materials.
To the extent a business or non-profit has employees that cannot perform their functions via telework or work-from-home arrangements, the business or non-profit should make best efforts to reduce staff on site to the minimal number necessary to ensure that essential operations can continue. Examples of employees who need to be physically present at their work site in order to perform their duties include, but are not limited to, law enforcement officers, fire fighters, and other first responders, cashiers or store clerks, construction workers, utility workers, repair workers, warehouse workers, lab researchers, information technology maintenance workers, janitorial and custodial staff, and certain administrative staff."
Additional info FAQ: https://bit.ly/NJEO107
6️⃣ Tax Day Moved to July 15
The Treasury Department and the IRS issued new guidance related to federal tax payments. According to the guidance, “all individual and other non-corporate tax filers” can defer federal tax payments of up to $1 million until July 15, 2020, (normally April 15) without interest or penalties. Corporations have a similar deferment option of up to $10 million.
Treasury Secretary Steven Mnuchin said the tax filing deadline would also move to July 15, giving Americans three more months than the original deadline. He stressed that individuals should file sooner rather than later if they wished to see a tax return in a timely fashion. Employers don’t need to make any changes at the moment. This guidance is intended to help reduce the economic burden of COVID-19, so employers may take advantage of this new deferment option as they see fit. The IRS and Treasury Department said they will continue to update policies and issue additional guidance as needed during this time of crisis.
