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03/31/2020

FFCRA Updates

• IRS Notice 2020-21 clarifies April 1 as the start date for FFCRA payroll tax credits
• The tax credits under the FFCRA are available for paid leave provided from April 1 to December 31, 2020
• Updates to iSolved to be effective by 4-1-20
  • Change name of system earnings from Temporary Paid Sick to
    • COVID-19 Paid Sick
  • Change name of system earnings from Temporary Paid FMLA to
    • COVID-19 Paid FMLA
  • Add new system memo:
    • COVID-19 Qualified Health Plan Expenses
  • Add 3 new system accumulators
    • COVID-19 Paid Sick
    • COVID-19 Paid FMLA
    • COVID-19 Qualified Health Plan Expenses
  • These will be used to track the amounts as needed for the payroll tax credit calculation
• The tax credits against the employer portion of Social Security tax include:
  • Paid COVID-19 leave wages
  • The employer share of Medicare on the qualified leave wages
  • Qualified health plan expenses which are amounts paid or incurred by the employer for a group health plan to the extent that the amounts are excluded from the employee’s gross income
• Instructions on processing the new paid leave will be available in iSolved University by 04-01-20
  • Using the new paid leave types, which is required to utilize the iSolved functionality for calculating the payroll tax credit
  • Updating the new system memo calc to record the qualified health plan expenses for each employee affected
• Instructions for applying the new payroll tax credit will be available in iSolved University by 4-1-20
  • Retroactive calculations for payrolls processed prior to 4-10-20 iSolved credit calculation functionality

Updates Coming Soon

• The functionality to calculate, track and automatically apply the payroll tax credits will be added to iSolved with a tentative release date of 4-10-20
  • Employers processing payrolls for qualified paid leave wages prior to the release of the functionality can either apply for the accelerated refund with the IRS or delay taking the credit until after the updates are deployed
• CARES Act that was signed into legislation on 3-27-20
  • Employee retention credit and deferral of payroll tax payment functionality are currently being reviewed and further updates will be forthcoming
  • Currently evaluating the creation of a report to assist employers in compiling information needed for the Paycheck Protection Program Loan

03/26/2020

The Washtenaw County Health Division Orders Employee Screening

The Washtenaw County Health Department issued an order Wednesday requiring businesses that are remaining open during the state stay-at-home order to screen workers for coronavirus (COVID-19).  The order will go into effect Thursday at 6 p.m.It applies to businesses deemed essential. https://www.washtenaw.org/DocumentCenter/View/15840/Emergency-Orders-to-Protect-Essential-Workers-March-25

Federal Update-CARES Act Passes

It is being reported that he federal $2 trillion stimulus package has been passed by the Senate.

Stimulus payment checks: No information available yet

At this time, the IRS does not have any information available yet regarding stimulus or payment checks, which remain under consideration in Congress. Please do not call the IRS about this. When the IRS has more specific details available, we will make it available on this page.

Update on Paid Leave Taxability and Credit

FFCRA (H.R. 6201) Update On March 24, 2020, the Department of Labor published “Questions & Answers” identifying an effective date of April 1, 2020, for paid leave under the FFCRA:

The FFCRA’s paid leave provisions are effective on April 1, 2020, and apply to leave taken between April 1, 2020, and December 31, 2020. Below is a link of FAQs posted by the DOL:

https://www.dol.gov/agencies/whd/pandemic/ffcra-questions

Paid leave taxability and credit Section 7005 of H.R. 6201 (FFCRA) identifies, “Any wages required to be paid by reason of the Emergency Paid Sick Leave Act and the Emergency Family and Medical Leave Expansion Act shall not be considered wages for purposes of section 3111(a)…”

Section 3111(a) refers to the employer portion of social security taxes.

We are aware of IRS notice IR 2020-57:

Employers receive 100% reimbursement for paid leave pursuant to the Act.

• Health insurance costs are also included in the credit.
• Employers face no payroll tax liability.
• Self-employed individuals receive an equivalent credit.

https://www.irs.gov/newsroom/treasury-irs-and-labor-announce-plan-to-implement-coronavirus-related-paid-leave-for-workers-and-tax-credits-for-small-and-midsize-businesses-to-swiftly-recover-the-cost-of-providing-coronavirus

To clarify, the taxability of paid leave is a separate topic from the credit for paid leave that can be taken against a future 941 tax liability.

We are looking forward to receiving official guidance and regulations from the IRS on whether these earnings are subject to any employer federal payroll taxes. We will continue to provide you with updates and will update the system accordingly.

  

03/25/2020

The Oakland County Health Division Orders Employee Screening

Oakland County, MI has issued an emergency order requiring essential businesses to screen all actively working employees for illness, exposure to COVID-19 and establish a social distancing protocol for customers and employees to reduce the transmission of the coronavirus.

The Order requires essential businesses operating in Oakland County to:

• Implement a daily screening program for all staff, including questions about relevant symptoms and recent travel
• Implement a plan to enforce social distancing of at least 6-feet for employees working alongside one another.

Find the employee screening here: https://www.oakgov.com/covid/resources/Documents/Screening%20for%20Businesses%203.24.20c.pdf

 
03/21/2020

Income Tax Filing and Payment Deadlines Extended

The 2019 income tax filing and payment deadlines for all taxpayers who file and pay their Federal income taxes on April 15, 2020, are automatically extended until July 15, 2020. This relief applies to all individual returns, trusts, and corporations. This relief is automatic, taxpayers do not need to file any additional forms or call the IRS to qualify.

This relief also includes estimated tax payments for tax year 2020 that are due on April 15, 2020.

03/20/2020

Implementation of the Families First Corona Response Act

Treasury, IRS and Labor announce plan to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing Coronavirus-related leave

https://www.irs.gov/newsroom/treasury-irs-and-labor-announce-plan-to-implement-coronavirus-related-paid-leave-for-workers-and-tax-credits-for-small-and-midsize-businesses-to-swiftly-recover-the-cost-of-providing-coronavirus

03/19/2020

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Introduced

The CARE Act was introduced to the house to provide emergency assistance and health care response for individuals, families, and businesses affected by the 2020 coronavirus pandemic.

03/18/2020

Families First Corona Response Act Passed by Senate

The Families First Corona Response Act was passed by the Senate, signed by The President and became a law.  Will become effective April 1, 2020 to cover leave between April 1, 2020 to December 31, 2020.

03/11/2020

Families First Corona Response Act Introduced

The Families First Corona Response Act was introduced to the house.

EMPLOYER RESOURCES:

Application for disaster loan assistance https://disasterloan.sba.gov/ela/.

For businesses looking for more information on how to apply for an SBA EIDL loan or whether it is something they should consider, visit michiganbusiness.org/covid19

Resources for Michigan Businesses During COVID-19 https://www.michiganbusiness.org/about-medc/covid19/

Corona Virus Tax Relief https://www.irs.gov/coronavirus

US Department of Labor COVID Employer Resources https://www.dol.gov/agencies/whd

Families First Coronavirus Response Act: Questions and Answers https://www.dol.gov/agencies/whd/pandemic/ffcra-questions