On March 27, 2020 the the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act or Act), H.R. 748, became law. The Act provides eligible employers a tax credit against employment taxes equal to 50% of qualified wages. The credit is determined quarterly and effectively capped at $5,000 per eligible employee.
Eligible employers include any employer that was carrying on a trade or business in 2020 whose operations were impacted by the Coronavirus crisis. Two tests are used to determine whether a business was impacted by the Coronavirus. The tests are applied quarterly. The ...
The CARES Act, enacted on March 27, 2020, includes several provisions that change the rules for employee benefit plans, ranging from providing greater access to retirement benefits and HSA funds to offering funding relief to single-employer pension plans.
The CARES Act adds a new tax-favored withdrawal option that applies to the following types of retirement plans: IRAs, qualified plans (e.g., profit sharing and 401(k) plans), 403(a) and (b) plans, and 457(b) governmental plans. The withdrawal is permitted only if it is a Coronavirus-related distribution, which is defined as a ...
The COVID-19 or Coronavirus has disrupted demand in many industries and is wreaking havoc on budgets and cash flow projections. On March 27, 2020 the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act or Act), H.R. 748, became law. The CARES Act seeks to incentivize employers to retain their employees and to provide enhanced unemployment benefits for employees who are not retained. The CARES Act contains a number of tax related provisions to assist employers.
Paycheck Protection Program
The Act establishes a forgivable loan program (the Paycheck Protection Program ...
March 25, 2020 – The IRS announced a major suspension of many “tax compliance” dates and tax collection measures. Published in IRS Information Release 2020-59 as the “People First Initiative”, the IRS announced that it is “temporarily adjusting our processes to help people and businesses during these uncertain times” and where the announced changes range from postponing certain payments related to Installment Agreements and Offers in Compromise to suspending tax collection measures and limiting certain enforcement actions. The IRS will be announcing more ...
On March 17, 2020, the South Carolina Department of Revenue announced, through SC Information Letter #20-3, that all South Carolina tax filing and payment deadlines starting on April 1, 2020 were extended to June 1, 2020. Penalties and interest are waived by SCDOR during this period. This includes not only state income taxes, but also sales taxes, admission taxes, and other taxes administered by SCDOR.
The IRS had initially announced that the due date for 2019 federal income tax payments was extended to July 15, 2019, but that the April 15th tax return filing date was not extended. The ...
On March 18, 2020 President Trump signed the Families First Coronavirus Response Act (Act) to provide relief to employees and small and midsize businesses. The Act is effective until December 31, 2020. The Act requires covered employers, except those with fewer than 50 employees who receive an exemption,[1] to provide the following:
- Two weeks (up to 80 hours) of paid sick time at the employee’s regular rate of pay where the employee is unable to work because the employee is quarantined (pursuant to Federal, State, or local government order or advice of a health care provider), and/or ...
The IRS announced today that it has temporarily closed all Taxpayer Assistance Centers and discontinued face-to-face service throughout the country until further notice. The IRS also announced that it is continuing to process tax returns, issue refunds, and help taxpayers through this difficult time.
In response to the COVID-19 Coronavirus pandemic, Treasury Secretary Steven Mnuchin announced Tuesday that Americans will have until July 15th to pay their 2019 federal income taxes – and without late payment penalties or interest during this extended payment due date. The IRS has now followed with the issuance of specific guidance in IRS Notice 2020-17.
Under the new IRS notice, any person with a Federal income tax payment due April 15, 2020, is affected by the COVID-19 emergency and is considered an “Affected Taxpayer”.
For an Affected Taxpayer, the due date for making ...
In what is appearing to be a fairly fluid situation with the United States Treasury Department and the IRS, Treasury Secretary Steven Mnuchin announced, via Twitter, that not only tax payments but also the filing of individual tax returns will be extended from April 15 to July 15. Secretary Mnuchin specifically tweeted that “At @realDonaldTrump’s direction, we are moving Tax Day from April 15 to July 15. All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.”
This tweet from the Treasury Secretary represents a ...
In response to the COVID-19 Coronavirus pandemic, Treasury Secretary Steven Mnuchin announced Tuesday that Americans will have until July 15th to pay their 2019 federal income taxes – and without late payment penalties or interest during this extended payment due date. No special filing with the IRS is required for this payment extension. The announced payment extensions are limited, however. Individuals can defer payment of up to $1 million in taxes, and corporations can defer payment of up to $10 million, and without penalties or interest. Individuals and businesses with 2019 ...
“Employer securities” in retirement plans have been the source of a significant amount of litigation under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). In general, “employer securities” are common stock issued by an employer of the employees covered by the retirement plan. In many cases, “employer securities” are traded on a national exchange which is registered with the U.S. Securities and Exchange Commission (the “SEC”).
In relevant part, ERISA Section 404 contains an exclusive purpose requirement which requires a ...