HR Minute

The Department of Labor Issues Model Notices and Additional Guidance Regarding the American Rescue Plan Act of 2021 100% COBRA Premium Subsidy

Coronavirus

Purpose

We want to alert clients to the availability of Model COBRA Subsidy Notices and Frequently Asked Questions (the FAQs) issued by the Department of Labor (DOL) on April 7, 2021 in connection with the 100% COBRA premium subsidy available from April 1 until September 30 for group health plan participants who  have lost their coverage due to an involuntary termination of their employment or a reduction in hours. The COBRA premium subsidy applies to any group health plan subject to the federal COBRA laws as well as to group health plans subject to state “mini-COBRA” laws. 

The FAQs provide answers to a number of key questions.

Continue reading The Department of Labor Issues Model Notices and Additional Guidance Regarding the American Rescue Plan Act of 2021 100% COBRA Premium Subsidy ›

American Rescue Plan Act of 2021 Creates a 100% COBRA Premium Subsidy

Coronavirus

Purpose

We want to alert clients to the provision in the American Rescue Plan Act of 2021 which creates a 100% COBRA premium subsidy available from April 1 until September 30 for group health plan participants who have lost their coverage due to an involuntary termination of their employment or a reduction in hours. The COBRA subsidy applies to any group health plan subject to the federal COBRA laws as well as to group health plans subject to state “mini-COBRA” laws. Thus it can apply to large as well as small employers.

Continue reading American Rescue Plan Act of 2021 Creates a 100% COBRA Premium Subsidy ›

Updated PPP FAQs – Second Draw PPP Loans

Coronavirus

On March 3, 2021, the U.S. Treasury Department in conjunction with the Small Business Administration (SBA) posted an updated set of “frequently asked questions” (FAQs) concerning the Paycheck Protection Program (PPP). These FAQs are tied to the changes and continuation of the PPP loan program enacted under the Consolidated Appropriations Act, 2021 (CAA). The updated FAQs reflect changes or clarifications made to existing FAQs mainly to assist Second Draw PPP borrowers. Below is a summary of certain FAQs. A full copy of the FAQs can be found here.

Continue reading Updated PPP FAQs – Second Draw PPP Loans ›

Economic Aid Act Second Draw Specific Regulations and Opening of Portal to Accept Applications for Second Draw Loans

Posted In Coronavirus

Coronavirus

Eligible borrowers who would like to obtain or increase their Paycheck Protection Program (PPP) funding will be able to act as early as this week, due to recent action by Congress and the U.S. Small Business Administration (SBA). On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (EAA) (included within the Consolidated Appropriations Act of 2021) became law. On January 8, 2021, the SBA announced that the portal to accept PPP loan applications, pursuant to the EAA, will re-open Monday, January 11, 2021. To promote access to capital, the SBA will initially only accept First Draw PPP Loan applications, including requests for increases on First Draw PPP Loan amounts, from community financial institutions. Second Draw PPP Loan applications will be accepted beginning January 13, 2021.

Continue reading Economic Aid Act Second Draw Specific Regulations and Opening of Portal to Accept Applications for Second Draw Loans ›

Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Economic Aid Act) and Expansion of Employee Retention Credit (ERC) enacted by the CARES Act

Posted In Coronavirus

Coronavirus

On December 27, 2020, the Consolidated Appropriations Act of 2021 (CAA) became law. The CAA includes the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (the Act), which extends and expands the Employee Retention Credit (ERC) enacted by the CARES Act. Thus, thanks to the CAA, eligible employers may still have CARES Act tax credits available to them in 2021 that otherwise would have expired at the end of 2020, or for which they otherwise would not have been eligible, or for a larger credit than they might have qualified for otherwise.   

Continue reading Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Economic Aid Act) and Expansion of Employee Retention Credit (ERC) enacted by the CARES Act ›

Consolidated Appropriations Act of 2021: Payroll Tax Deferral Extension

Posted In Coronavirus

Coronavirus

The Consolidated Appropriations Act of 2021 was signed into law on December 21, 2020. The Act extended timeframes related to the Presidential Memorandum and Executive Order whereby the President directed the Secretary of the Treasury to allow for the deferral of the employee-portion of payroll taxes withheld under IRC Section 3101(a) (6.2% for Old-Age, Survivors and Disability Insurance) on wages earned during the period of September 1, 2020 through December 31, 2020 (“Deferral Order”). 

Continue reading Consolidated Appropriations Act of 2021: Payroll Tax Deferral Extension ›

Georgia Governor Institutes Post-Exposure Quarantine Requirements for Certain Businesses

Posted In Coronavirus

Coronavirus

In response to surging case numbers and crowded hospitals, Governor Kemp last week updated the requirements of the statewide Executive Order for the first time in several weeks. The update explicitly adopts a quarantine requirement for Georgians exposed to COVID-19 and imposes an obligation on certain businesses regarding such persons. The requirement does not apply to all businesses in Georgia, and it imposes different requirements on different kinds of businesses.

This Alert will describe the quarantine protocol and its general application to businesses in Georgia. We will publish additional guidance later this week regarding specific application of the quarantine protocol to children’s Camps, Live Performance Venues, and gyms and fitness centers.

Continue reading Georgia Governor Institutes Post-Exposure Quarantine Requirements for Certain Businesses ›

Employers Can Still Get a Tax Credit for Paid Sick Leave in 2021

Posted In Coronavirus

Coronavirus

The Families First Coronavirus Response Act (FFCRA) became law on April 1, 2020, as a measure to try to address the effect of the pandemic on businesses and employees. It required certain employers (generally those with fewer than 500 employees) to provide their employees with paid sick leave for a number of reasons related to COVID-19. Employers could seek payroll tax credits to offset, dollar-for-dollar, the cost of providing the sick leave. The obligation on the employer to provide that sick leave ends today, December 31, 2020.

Continue reading Employers Can Still Get a Tax Credit for Paid Sick Leave in 2021 ›

Deadline Approaching to Take Advantage of CARES Act Retirement Benefits

Posted In Coronavirus

Coronavirus

On March 27, 2020, Congress signed the Coronavirus Aid, Relief and Economic Security (CARES) Act into law to provide financial relief to Americans suffering from the economic fallout of COVID-19. The CARES Act contained tax benefits regarding early withdrawals from employee retirement accounts. These retirement benefits were not extended by the Consolidated Appropriations Act of 2021 (CAA of 2021) that took effect this week.

Continue reading Deadline Approaching to Take Advantage of CARES Act Retirement Benefits ›

PPP and Other Financial Assistance: Tax Treatment Clarification

Posted In Coronavirus

Coronavirus

The Coronavirus Response and Relief Supplemental Appropriations Act, 2021 was signed into law by President Trump on December 27. Section 276 of the Act clarifies the tax treatment of Paycheck Protection Program (PPP) loans, which is a welcomed clarification by many. The clarification is effective as of March 27, 2020, the enactment of the CARES Act. The Act also provides for similar treatment of PPP loans and other financial assistance provided for in both the CARES Act and the new Act.

Continue reading PPP and Other Financial Assistance: Tax Treatment Clarification ›

Stay Connected

Subscribe to blog updates via email

Contributors