The Small Business Administration (SBA) has published guidance for the $349 billion Paycheck Protection Program (PPP) contained in The CARES Act. The PPP is designed to help small and mid-sized businesses offset the economic impact of the COVID-19 pandemic.
On March 25, 2020, New Jersey passed another law to help ease the burden faced by employees who must miss work due to COVID-19. The new law allows employees affected by COVID-19 to utilize New Jersey’s Earned Sick Leave Act, Family Leave Act, Temporary Disability Insurance, or Family Leave Insurance. The most significant change to these laws is that it provides benefits to employees who must be quarantined or care for a family member who must be quarantined.
Employers operating in New Jersey who find themselves needing to reduce their workforces for reasons related to COVID-19 should seek guidance from counsel with regard to the application of obligations set forth in New Jersey’s WARN Act (“NJ WARN”). In addition to the federal law, New Jersey’s version, which is considered one of the nation’s most stringent, requires employers to provide employees with notice of a mass layoff, termination, or transfer of operations, affecting 500 or more full-time employees, or 50 or more full-time employees if such represents one-third or more of the employees at the business establishment. Presently, the law requires employers to provide at least 60 days’ notice, and requires that employers pay certain severance in the event that they do not fully comply with the notice requirement.
The COVID-19 pandemic combined with the current economic uncertainty may leave many families and individuals with questions and concerns about their estate and financial planning. The Wealth Preservation team at Porzio has compiled a list of some frequent questions to assist during this time.
The Internal Revenue Service has extended the time to file your 2019 Federal Form 1040 from April 15, 2020 to July 15, 2020. The rule extends the time to pay any tax due with the filing of your 2019 Federal Form 1040. The first quarter Federal estimated tax payment typically due on April 15, 2020 has also been extended to July 15, 2020. However, the second quarter Federal estimated tax payment due on June 15, 2020 has not been extended. The total amount of tax that can be deferred is $1 million.
We are living in uncertain and unprecedented times, and businesses are not exempt from the impact of the COVID-19 virus. Government shutdowns and workforce restrictions have left business owners guessing as to whether their companies are “essential” or “non-essential,” and can remain open under lockdowns imposed by state governments. Recent Executive Orders by state governors Murphy and Cuomo identify the “essential” industries and business that can remain open during the lockdowns provided the businesses follow workplace distancing practices.
Porzio, Bromberg & Newman’s Employment Team created a breakdown of benefits available in COVID-19 work-related situations according to the New Jersey Department of Labor and Porzio’s analysis of the federal legislation passed on March 18, 2020.
The onslaught of news and information regarding COVID-19, which evolves daily and often seems contradictory, has led to anxiety and confusion for many companies. In particular, for those individuals in charge of Human Resources, the questions with regard to wages and leave issues are countless. Although the response to inquiries will continue to evolve as the situation develops, the following summary will provide guidance to companies looking to navigate this emerging public health situation.
We are living in uncertain and unprecedented times, and businesses are not exempt from the impact of COVID-19. Government shutdowns, workforce restrictions, and the stock market’s plunge have unsteadied the economy and affected businesses large and small as they fight to adapt to the “new normal” while trying to maintain a “business as usual” approach. Business owners need to manage today but must look ahead to identify and prepare for risk caused by the COVID-19 virus.
The impact of COVID-19 is far-reaching and causing anxiety and confusion for businesses, economies, and markets. At Porzio, Bromberg & Newman, P.C., and the Porzio family of companies, our attorneys and business consultants are monitoring the news, legal, and community updates so that we can serve the legal and business needs of our clients during this difficult time.