News & Insights

Recent Posts

Covid-19: Assessing the Legal Risk of Infectious Diseases

WSHB Employer Alert: FFCRA and DOL Regulations 4.2.20

Employment Practices Consultation & COVID-19

It’s a No-Win Situation: The Perils Facing Hospitals Due to the Coronavirus

COVID-19 Employer Alert: Summary of the CARES Act

COVID-19: New York Malpractice Law Alert

COVID-19 Employer Alert: Enactment of Families First Coronavirus Response Act (FFCRA)

WSHB Co-Founder Stephen Henning to Announce the Winner of CLM's 2020 Outside Counsel Professional of the Year Award

WSHB Partner Robert Hellner Shares Mediation Tactics at CLM’s 2020 Annual Conference

Risk Transfer and Contractual Indemnification – Who Gets Left Holding the Bag?

New Developments in Challenging Certificates of Merit — Seeking Dismissal for Failure to Concurrently File Certificate with the Original Petition

Seven Habits that Define a Highly Effective Claims Team

Social Media Do's and Don'ts

WSHB Partner Kelly Waters Named to NJBIZ's 2020 Best Fifty Women in Business List

WSHB Names Andrew S. Kessler as Managing Partner of the Firm's Philadelphia Office

WSHB Employment Alert: California Law Banning Arbitration Agreements Temporarily on Hold

Sam McDermott on the Dos and Don’ts of Construction Project Termination

Full Disclosure! Insurer Beware: Colorado’s New Automobile Policy Disclosure Law Has Teeth!

Andrew S. Kessler Named Legal Counsel for Northeast Community Center for Behavioral Health

WSHB Elevates Ten Partners to Defined Equity Status

Eleven WSHB Attorneys Elected Into Partnership

Eighteen Attorneys Elected to WSHB Senior Counsel

Supreme Court Allows Suit Over Website Accessibility

Strategies for Defending Legionella and Mold Claims

Residential Revolution

Time Limit Demand Issues Arrive in North Carolina

Temp Agency Absolved of Liability in Hotly Contested Action

Alternative Fee Agreements and Construction Issues: Oil and Water or Perfect Pairing!?

WSHB's Graham Miller Helps Demystify Construction Claims in the Pacific Northwest

WSHB Partner Janice Michaels Named to The Best Lawyers in America© 2020 List

One Bad Apple: Navigating through Sexual Battery and other Intentional Torts

Leading Construction Litigator Cynthia Tari Joins WSHB's Dallas Office

WSHB’s Philadelphia Partner Secures Summary Judgment in Catastrophic Premises Liability Matter

WSHB Welcomes New Partner Andrew Kessler

New Bill In New York Proposed for Signature by Governor Andrew Cuomo is Set To Make Employers "SWEAT"

Renowned Litigator Jason Williams Joins WSHB's Nevada Office

Litigator Richard Young Joins WSHB's Nevada Office

Published Appellate Opinion Upholding Summary Judgment in Favor of Commercial Tenant Against $3.5M Subrogation Suit

17 WSHB Lawyers Honored as 2019's Rising Stars

Arizona Supreme Court Allows Court of Appeals Decision Expanding Defendants' Ability to Enforce Settlements to Stand

WSHB’s Jason Klein Breaks Down the Good, the Sad and the Funny Sides of Claims

Litigating Sexual Battery and Other Intentional Torts: Navigating the One Bad Apple in Medical Negligence

WSHB Partner Michelle Arbitrio to Moderate Panel on Insurance and Risk Management in the Age of Mass Shootings

Girl on Fire: The Price of Pursuing the Truth in the #MeToo World

Pragmatic Issues on Settlement Versus Trial for Legal Malpractice Cases

A Withering Assault

The Natural Progression of Natural Disasters

Nevada’s Governor Signs Chapter 40 Reform Bill

WA Condo Law Changes Hope to Curtail Frivolous Defect Lawsuits and Stimulate Production

WSHB Co-Founder Stephen Henning Steps Into the Spotlight at this Year's West Coast Casualty Seminar

Professional Liability Expert Weighs In On Protecting Your Practice From Opioid Doc Arrest Fallout

Penalties, Punitives, and Granny Cams: The Escalating Lure of Elder Abuse Litigation

Are Structured Settlements Still Relevant

Game Changing Trends Affecting Construction

He's Not My Guy: The Joint-Employer Doctrine

WSHB Case Update: DOL Proposes Increase to Minimum Salary Threshold

WSHB and DWF Announce Exclusive Association

The Coastal Fire and What it Portends for the California Fire Season Ahead

Stephen Henning Named a Finalist for RISE 2022 Mentor of the Year Award

New Agreement on MICRA Averts Ballot Box Uncertainty in November

Who to Pay? Florida Court Weighs in on Claim Payments to AOB and Insureds

COVID-19 Employer Alert: Summary of the CARES Act

March 26, 2020

As we all come to understand the impact of the FFCRA, effective April 1, 2020, the most common question I am asked is, “how are businesses supposed to pay for this?” The question comes even more frequently as our nation faces a wave of mandatory business closures and shelter-at-home orders. As noted in my earlier alert, the FFCRA provides certain payroll tax credits to help offset the cost of expanded paid sick leave and paid FMLA leave under the Act, and more help is on the way.

Last night, the U.S. Senate passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act which is expected to be passed by the House and signed by the President tomorrow. The CARES Act provides $2 trillion in relief to businesses, including: New Paycheck Protection Loans from the Small Business Administration (SBA) to cover payroll costs:

  • New Paycheck Protection Loans from the Small Business Administration (SBA) to cover payroll costs
    • Covered period is February 15, 2020 – June 30, 2020
    • Loan amounts are equal to the LESSER of $10 million, or 2.5 times average monthly payroll costs, plus any refinanced SBA Disaster Loan (below)
    • Loans are fully guaranteed through December 31, 2020
    • The Act provides loan payment forgiveness on a tax-free basis for the first eight weeks
      • Employers requesting loan forgiveness must verify the number of employees, pay rates, and payment of mortgage, rent, and utilities
      • Loan forgiveness amounts are reduced by any layoffs or salary reductions of more than 25% during first eight weeks
  • Expanded access to SBA Economic Injury Disaster Loans (already underway) to cover costs other than payroll
    • No personal guarantee required for loans under $200,000
    • Loan amounts of up to $2 million for small business owners who cannot meet ongoing financial obligations
    • Applicants will receive an Emergency Grant in the form of an immediate advance of $10,000, and may use the funds to maintain payroll as well as other expenses
    • Emergency Grants do not need to be repaid, even if loan application is denied
    • The Act provides certain subsidies for loan repayment for the first six months
  • Additional tax provisions for businesses
    • Employee Retention Credit toward social security payroll taxes for employers forced to close or suspend operations but continue to pay employees
    • Delayed payment of employer payroll tax
    • Changes to tax treatment of charitable contributions to encourage giving
  • Help for individuals
    • 2020 Recovery Rebate for individuals, of $1,200 per person, $500 per child, for individuals earning less than $100,000 per year, as an advance payment of a credit on 2020 tax return
    • Exclusion from income of employer payment of employee student loan debt
    • Eliminates 10% penalty on withdrawal of retirement funds for coronavirus-related need
    • Delayed tax filing deadline of July 15, 2020

While I am not a tax attorney and cannot provide tax advice, I offer this summary to alert businesses to key provisions about which each should obtain detailed advice tailored to its unique situation. Please consult your accountant or a tax attorney for details on the tax provisions of the CARES Act and how they impact your business.

We at WSHB remain available to help employers large and small navigate this challenging time.


Privacy Policy      |      Site Map

© 2022 Wood Smith Henning & Berman LLP

Subscribe to our mailing list

* indicates required