On Aug. 8, 2020, President Trump issued a memorandum calling for the Secretary of Treasury to allow for the deferral of payroll tax withholding on the employee portion of certain payroll taxes. This memorandum is separate from the ability of employers to defer their own payroll tax obligations under the CARES Act and is intended to provide stimulus to the economy by temporarily boosting take-home wages. On Aug. 28, 2020, the Department of Treasury and Internal Revenue Service issued Notice 2020-65, allowing employers to defer payroll tax withholding, but requiring all ... Read More
The COVID-19 pandemic is impacting every facet of the economy, including commercial construction and real estate. While the depth of some of the impacts may not be known for months, if not years, there are several emerging trends shaping these industries now.
Construction Financing Issues
In the early days of the COVID-19 pandemic this spring, many companies looked at stopping, or at least pausing, construction projects due to the uncertainty about the economy. Many projects remain paused as owners continue to worry about their long-term viability or if there is demand for office or ... Read More
While the United States Patent and Trademark Office (USPTO) remains open for online filings, it has further extended many trademark and patent deadlines due to the COVID-19 outbreak.
Under the authority of the CARES Act, the USPTO announced yesterday evening that if one of the deadlines listed below fell between March 27, 2020 and May 31, 2020, then such a filing is timely if made on or before June 1, 2020. This enlarges by a month the prior range of deadlines subject to the prior COVID-19 extension and generally imposes a fixed deadline by which the filings should be made.
The ... Read More
The COVID-19 pandemic creates a unique set of circumstances for nonprofits. Many of them are facing similar challenges to for-profit businesses — how to manage employees working remotely, dealing with declining revenue — but without clarity about how the federal stimulus measures will benefit them. In addition, these times have created challenges for nonprofits with respect to governance issues, such as how directors and members of nonprofits can take action while remaining in compliance with the State of North Carolina’s "stay at home" orders.
The good news is, based ... Read More
The Coronavirus Aid, Relief, and Economic Security Act (CARES) enacted on March 27, 2020 contained several provisions related to the provision of loans by the Small Business Administration (SBA), including loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL). Unlike traditional SBA loans, which are not available to non-profit entities, faith-based organizations will generally be eligible for loans under these programs.
The SBA has issued guidance that any faith-based organization is eligible to receive the PPP and ... Read More
The Coronavirus Aid, Relief, and Economic Security Act (CARES) enacted on March 27, 2020 contained several significant business-related tax changes highlighted below. Many of these changes are limited in the period to which they apply, and several have retroactive application that may require filing an amended tax return in order to claim the full benefit available.
Business Interest Deductions
The amount of a taxpayer’s business income that may be offset by business interest generally is limited to 30%. CARES increases this limit to 50% for 2019 and 2020, subject to special ... Read More
Much of the focus of the attention generated by the CARES Act has been on the Payroll Protection Program (PPP) through the Small Business Association. Loans through the PPP have the potential to be forgiven on a tax-free basis. Please see our client alert for a discussion of the PPP.
The CARES Act also adds relief in the form of employee retention credits and a delay of employer payroll taxes highlighted below.
Employee Retention Credit
The Employee Retention Credit is a fully refundable payroll tax credit that qualifying employers may receive by continuing to fund ... Read More
The United States Patent and Trademark Office (USPTO) remains open for filings. Currently, as it has been for years, nearly all filings are made online.
Under authority from the CARES Act, the USPTO has extended many trademark and patent deadlines.
The USPTO is extending certain deadlines by 30 days if they fell between March 27, 2020 and April 30, 2020. When the filing is eventually made, the filing must be accompanied by a statement that the delay in filing/payment was due to the COVID-19 outbreak. “Due to” means that the practitioner, applicant, registrant or other ... Read More
This article originally appeared on the North Carolina Bar Association's Blog on April 1, 2020.
With coronavirus infections multiplying exponentially around the globe, countries, states, and localities are taking action to slow the spread. This update does not attempt to recount all that has changed since my last post. In particular, I do not catalogue all the state and local stay-at-home orders that have been enacted—though the North Carolina Judicial Branch’s COVID-19 Resource Page appears to have aggregated them all. Rather, I focus just on recent developments ... Read More
The Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, has been passed by Congress and awaits signature by the President. The CARES Act includes the much anticipated Paycheck Protection Program (PPP), establishing the guidelines for a new category of loans guaranteed by the Small Business Administration (or SBA) that will soon be available to certain eligible businesses. The loans are intended to provide borrowers much-needed liquidity during these uncertain times, and, notably, the principal amounts borrowed under the PPP may be entirely forgiven under ... Read More
- Updated CDC Masking Guidance; North Carolina Employers Strongly Encouraged to Implement COVID-19 Vaccination, Testing, and Mask Policies
- OSHA’s New Emergency Temporary Standard to Protect Healthcare Workers
- North Carolina Governor Extends Certain COVID-19 Measures
- New from OSHA on COVID-19: A COVID-19 Emergency Temporary Standard for Healthcare and Revised Guidance for All Other Employers
- Employer-Provided Incentives for Vaccinations—Finally Some Guidance
- Employers Considering Differential Treatment Based on Vaccination Status
- North Carolina Governor Lifts Mass Gathering and Social Distancing Limits and Most Mask Mandates
- North Carolina Governor Relaxes Outdoor Mask Mandate and Eases Mass Gathering Limit
- Availability of Health Insurance Subsidy Requires Employers to Act
- North Carolina Governor Further Eases COVID Restrictions on Businesses and Gatherings