False Claims Act Implications for PPP and Disaster Relief Loans: What Small Businesses Should Be Ready For
As the Code Section 139 relief period is scheduled to end soon along with the end of the COVID-19 national emergency, employers that assisted employees with personal expenses attributable to the COVID-19 pandemic should...more
On December 27, 2020, President Trump signed the Consolidated Appropriations Act of 2021 (the “Stimulus Act”), which not only gives taxpayers another stimulus payment but changes to retirement plans, including qualified...more
Last year, in response to the COVID-19 pandemic, the United States Congress and the Puerto Rico Department of Treasury (Hacienda) granted favorable tax treatment to coronavirus-related distributions (CRDs) and participant...more
As the 2020 year draws to a close, businesses should review the tax-related provisions adopted in the CARES Act and related IRS guidance with their tax advisers: EMPLOYER REFUNDABLE CREDIT AND PAYROLL TAX DEFERRAL: -...more
With its chaotic rollout, conflicting regulations, and breakneck disbursements, the Paycheck Protection Program (PPP) is primed to create a wave of litigation. This includes actions taken under the False Claims Act (FCA),...more
In the face of the unprecedented COVID-19 pandemic, many employees may experience financial hardship. For example, they may incur unexpected expenses as a result of COVID-19, including being quarantined or under a stay at...more
Businesses, employees, and other taxpayers are incurring new and often significant expenses as they adapt and respond to the changes brought on by the COVID-19 pandemic. Several tax provisions may help to mitigate the impact...more
Q: In addition to the CARES Act and other provisions of employee benefit plans described below, what other forms of hardship assistance are employers considering in order to support their employees who are facing health and...more
As more employees face financial hardship due to COVID-19, many employers are exploring additional options available for providing paid leave and other financial relief. This advisory provides a high-level summary of the...more
Employers providing support to employees during the COVID-19 pandemic can do so without triggering tax requirements in many cases — but executives seeking to return compensation to the company to aid employees should be...more
A timely and robust response to the COVID-19 virus demands the attention and resources of, and action by, federal and state regulators, employers, and individuals alike. The stakes could not be higher. State and local...more
The COIVD-19 pandemic is placing new and unprecedented demands on both taxable and tax-exempt employers and their employees. One option many employers may not have previously considered is the use of a tax-exempt employee...more
The President declared a national emergency in connection with the COVID-19 pandemic triggering Section 139 of the Internal Revenue Code. Thus, disaster assistance/relief payments are not taxable to the recipients if they...more
Employers may provide disaster relief payments and/or charitable assistance to employees in several ways. The following includes brief descriptions of each scenario in the context of the COVID-19 pandemic and corresponding...more
The landscape for employers has been changing quickly in the wake of COVID-19. Many employers are adapting to new ways of working and looking for ways to support employees with living and working through the COVID-19...more
With life upended for many employees during the COVID-19 pandemic, we want to highlight one way for employers to offer potential tax-favorable financial relief: implementing a disaster relief program under Section 139 of the...more
As the COVID-19 pandemic continues, businesses may consider having their affiliated company foundations take the lead on providing assistance to affected employees and their families. This is permitted, but companies must...more
With the worldwide spread of coronavirus, this is an unprecedented and unsettling time. Our health care systems are overwhelmed. Markets have been upended. Social distancing and self-quarantine are terms and practices we...more
During this unprecedented crisis, for-profit corporations have strategic options to assist their workers by providing deductible hardship and disaster grants that are tax-free to employees. Hardship and disaster grants...more
On March 13, 2020, the President issued a determination under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (the “Stafford Act”). A consequence of that action is that payments from employers to employees...more
Millions of Americans may potentially benefit from a disaster relief tax exemption following a declaration of a national emergency by President Donald Trump. On March 13, President Trump issued an emergency declaration in...more
You have dedicated employees that continue to courageously and diligently work the “front lines” during this time. Or, perhaps you’ve had to furlough or issue temporary layoffs to employees and you want to find some way to...more
More Relief Provided Late on Friday - On March 20, 2020, a joint news release issued by the Internal Revenue Service, the U.S. Treasury Department, and the U.S. Department of Labor announced regulations to be issued this...more
COVID-19 is presenting novel challenges for employers across the globe. Last week, we issued a general advisory that provides guidance to employers on how to navigate these challenges. One issue facing employers is how to...more