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Home Explore 2915 InsightSpecialEditionCovid19SP

2915 InsightSpecialEditionCovid19SP

Published by adivine, 2020-03-25 12:37:47

Description: 2915 InsightSpecialEditionCovid19SP


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ACHIEVING SUCCESS INSIGHT BEGINS WITH THE SPECIAL EDITION page 1 Families First Coronavirus Response Act (FFCRA) INSIGHT EDITION MARCH 2020 page 3 Payroll Processing under Families First Act page 3 Additional Information page 3 Other Employment Considerations page 3 Health Plan Information and Allowances for Credit page 4 Property Tax Changes Families First Coronavirus Response Act (FFCRA) Sources: U.S. Department of Labor and Internal Revenue Service The Families First Coronavirus Response Act A covered employer must provide to employees (FFCRA or Act) requires certain employers to provide that it has employed for at least 30 days: their employees with expanded family and medical leave for specified reasons related to COVID-19. The ● Ufapmtiolyaannadddmiteiodnicaal 1l 0lewaveeekast of expanded Department of Labor’s (Department) Wage and Hour two-thirds the Division (WHD) administers and enforces the new law’s employee’s regular rate of pay where an paid leave requirements. These provisions will apply employee is unable to work due to a bona fide from the effective date through December 31, 2020. need for leave to care for a child whose school or child care provider is closed or unavailable for Generally, the Act provides that covered employers reasons related to COVID-19. must provide to all employees: Covered Employers: The expanded family and ● Two weeks (up to 80 hours) of expanded family medical leave provisions of the FFCRA apply to and medical leave at the employee’s regular certain public employers, and private employers rate of pay where the employee is unable to with fewer than 500 employees. Most employees work because the employee is quarantined of the federal government are covered by Title II of (pursuant to Federal, State, or local government the Family and Medical Leave Act, which was not order or advice of a health care provider), and/or amended by this Act, and are therefore not covered experiencing COVID-19 symptoms and seeking by the expanded family and medical leave provisions a medical diagnosis; or of the FFCRA. However, federal employees covered by Title II of the Family and Medical Leave Act are ● Two weeks (up to 80 hours) of expanded family covered by the paid sick leave provision.  and medical leave at two-thirds the employee’s regular rate of pay because the employee is unable to work because of a bona fide need Small Business Exemption to care for an individual subject to quarantine (pursuant to Federal, State, or local government Small businesses with fewer than 50 employees order or advice of a health care provider), or care will be eligible for an exemption from the leave for a child (under 18 years of age) whose school requirements relating to school closings or or child care provider is closed or unavailable childcare unavailability where the requirements for reasons related to COVID-19, and/or the would jeopardize the ability of the business to employee is experiencing a substantially similar continue. The exemption will be available on the condition as specified by the Secretary of Health basis of simple and clear criteria that make it and Human Services, in consultation with the available in circumstances involving jeopardy to Secretaries of the Treasury and Labor. the viability of an employer's business as a going concern. Labor will provide emergency guidance Correction to Previous Announcement and rule-making to clearly articulate this standard. Source: Office of Jackie Walorski Qualifying Reasons for Leave: As of March 24th, 2020 the second quarter tax payments due Under the FFCRA, an employee qualifies for on June 15th have not been deferred. Only the payments expanded family and medical leave if the employee due on April 15th have been deferred until July 15th. If this payment date changes we will let you know. Continued on page 2 01

Continued from page 1 Prompt Payment for the Cost of Providing Leave is unable to work (or unable to telework) due to a need for leave because the employee: When employers pay their employees, they are required to withhold from their employees' 1. is subject to a Federal, State, or local paychecks federal income taxes and the employees' quarantine or isolation order related to share of Social Security and Medicare taxes. The COVID-19; employers then are required to deposit these federal taxes, along with their share of Social Security 2. has been advised by a health care provider to and Medicare taxes, with the IRS and file quarterly self-quarantine related to COVID-19; payroll tax returns (Form 941 series) with the IRS. Under guidance that will be released next week, 3. is experiencing COVID-19 symptoms and is eligible employers who pay qualifying sick or child seeking a medical diagnosis; care leave will be able to retain an amount of the payroll taxes equal to the amount of qualifying sick 4. is caring for an individual subject to an and child care leave that they paid, rather than order described in (1) or self-quarantine as deposit them with the IRS. described in (2); The payroll taxes that are available for retention include withheld federal income taxes, the employee 5. is caring for a child whose school or place share of Social Security and Medicare taxes, and of care is closed (or child care provider is the employer share of Social Security and Medicare unavailable) for reasons related to COVID-19; taxes with respect to all employees. or If there are not sufficient payroll taxes to cover the cost of qualified sick and child care leave 6. is experiencing any other substantially-similar paid, employers will be able file a request for an condition specified by the Secretary of Health accelerated payment from the IRS. The IRS expects and Human Services, in consultation with the to process these requests in two weeks or less. Secretaries of Labor and Treasury. The details of this new, expedited procedure will be announced next week. Under the FFCRA, an employee qualifies for expanded family and medical leave if the employee Examples is caring for a child whose school or place of care is closed (or child care provider is unavailable) for If an eligible employer paid $5,000 in sick leave reasons related to COVID-19. and is otherwise required to deposit $8,000 in payroll taxes, including taxes withheld from all its Duration of Leave: employees, the employer could use up to $5,000 of For reasons (1)-(4) and (6): A full-time employee is the $8,000 of taxes it was going to deposit for making eligible for up to 80 hours of leave, and a part-time qualified leave payments. The employer would only employee is eligible for the number of hours of leave be required under the law to deposit the remaining that the employee works on average over a two- $3,000 on its next regular deposit date. week period. This portion of the bill may be referred If an eligible employer paid $10,000 in sick leave and to as Emergency Paid Sick Leave ACT. was required to deposit $8,000 in taxes, the employer For reason (5): A full-time employee is eligible could use the entire $8,000 of taxes in order to make for up to 12 weeks of leave at 40 hours a week, qualified leave payments and file a request for an and a part-time employee is eligible for leave for accelerated credit for the remaining $2,000. the number of hours that the employee is normally Equivalent child care leave and sick leave credit scheduled to work over that period. amounts are available to self-employed individuals under similar circumstances. These credits will be Calculation of Pay: claimed on their income tax return and will reduce For leave reasons (1), (2), or (3): ESL - employees estimated tax payments. taking leave shall be paid at either their regular Employer Notice: Each covered employer must post rate or the applicable minimum wage, whichever in a conspicuous place on its premises a notice of is higher, up to $511 per day and $5,110 in the FFCRA requirements. This poster will be created aggregate (over a 2-week period). and on the Department of Labor website for use, by For leave reasons (4) or (6): EFSL - employees Friday March 27th. taking leave shall be paid at 2/3 their regular rate or 2/3 the applicable minimum wage, whichever is higher, up to $200 per day and $2,000 in the aggregate (over a 2-week period). For leave reason (5): EFMLA - employees taking leave shall be paid at 2/3 their regular rate or 2/3 the applicable minimum wage, whichever is higher, up to $200 per day and $12,000 in the aggregate (over a 12-week period—two weeks of paid sick leave followed by up to 10 weeks of paid expanded family and medical leave). 02

Payroll Processing in order to continue receiving this paid sick time. under Families Documentation can be requested. First Act Companies should use the FMLA certification forms, where the leave is for a serious illness, but be lenient Payroll processors across the country are working on response times bases on the large influx of on programming to implement the different pay healthcare usage right now. codes for the various types of leave. Following is an An employer of an employee who is a health care example of what those earning codes may look like: provider or an emergency responder may elect to exclude such employee from the application of the 1. ESL: Emergency Sick Leave for taking care of provisions in the amendments made under the Act. yourself (annual max of 10 days and $5,110) Review “compensation” description of 401k Plans and if Sick/Leave time is included. 2. EFSL: Emergency Sick Leave for taking care DOL will provide clarifications of this new Act within of someone in your family (annual max of 10 15 days (approximately). days and $2,000) OSHA & EEOC (covering ADA laws) has approved businesses taking temperatures of employees during 3. EFMLA: Emergency Family Leave for child this COVID-19 event. Questionnaires on Employee care (annual max of 10 weeks paid and Health for symptoms of flu and the Coronavirus $10,000). being asked is acceptable. Corresponding accrual codes may be added by your Other Employment Considerations processor on the employer level to track the above time taken. █ Employees who have been affected by a As information becomes available from the IRS shutdown, furloughs, or layoffs prior to April regarding the credit for health plan expenses we will 2nd may not be eligible, unless Congress follow up with best practices and considerations for provides changes to this Act. configuring our system. It is very important to track each day of leave based █ Keep in mind the WARN Act: temporary on the reason for the leave as this impacts the layoffs for extended periods or reduction in amount the employee is paid and how long they are hours for longer periods of time may trigger paid. Employers preparing payroll in house should the WARN Act. Employers need to give as follow the examples provided and the Form 941 will much notice as possible, even for a short-term be revised to incorporate leave pay and the credits. layoff or furlough. Check federal and state reasons related to COVID-19. laws on implications. Additional information: █ If a Company implements this Act ahead of a reduction in force, seek advice from your The effective date is not later than 15 days after the attorney. date of enactment, which would be April 2, 2020 and ends December 31, 2020. Most interpretations █ If employees are rehired, the employees may are indicating you may begin effective immediately, be eligible for these programs up through but that interpretation is not unanimous. We are still awaiting a resolution on this. Dec 31, 2020. It is not yet confirmed that Stay At Home state mandates qualify as a Federal, State, or local Health Plan Information and quarantine or isolation order related to COVID–19. Allowances for Credit: Companies need to act in good faith at this current time while waiting on the Department of Labor to Tax credit amounts may be increased to cover clarify, but FLSA standards on pay need to be met. amounts paid or incurred by the employer to provide If an employee is eligible for the paid sick leave and maintain group health plans, but only to the under the act, then the employer may not require extent that such amounts are excluded from the an employee to use other paid leave provided by the gross income of employees. Expect more guidance employer before this time is used. shortly. Reasonable Notice & Follow Up Requirement: After the first workday an employee receives paid sick █ Review eligibility of employees in fully-insured time under this Act, an employer may require the plans (i.e. typically, 30 hours on average. employee to follow reasonable notice procedures █ Consult with your insurance company, where you are implementing reduction in hours. █ Reduced hours or weeks off, can trigger Cobra. 03

ACHIEVING SUCCESS BEGINS WITH INSIGHT THE EDITION Property Tax to the Indiana personal property tax exemption. The Changes law increases the acquisition cost threshold for the business personal property tax exemption from Like everything else, there are several changes this $20,000 to $40,000 effective with the current year’s year regarding Indiana property tax returns. filing as of January 1, 2020. A return is still required to Waiver of penalties for late property tax payments request an exemption, or a penalty may be assessed. Governor Holcomb issued an Executive Order on Insight will continue filing exemption forms as March 19, 2020. The order states that property taxes requested. If you would like to file your own remain due on May 11, 2020, but counties are to waive exemption form, here are the steps to follow: penalties on payments made within 60 days after that date. This will not apply to property tax payments made ● The forms can be accessed on-line at www. through an escrow account or mortgage company. The Look for “Forms” in the left-hand waiver does apply to both real and personal property column under “Information for Taxpayers”. Then tax payments. The tax bills are to be mailed out by the choose Personal Property Forms. assessor’s office no later than April 15, 2020. Personal property tax returns ● The exemption can be filed on either Form The Executive Order did not change the due date of 103-Short (11274) or Form 103-Long (11405). Indiana personal property tax returns which is May 15, o On either form, there is a box to check 2020. It did encourage assessors to grant an extension at the top of page 1 and the amount of until June 14, 2020. Insight contacted the county and acquisition assets will need to be listed. township assessors’ offices in Elkhart and St. Joseph o Only Sections I, II and IV on page 1 need to counties. As of March 23, 2020, the assessors are be completed. not planning to grant extensions. Their due date for o Form 104 (10068) also needs to be remitting everything to the State of Indiana has not completed. changed making it not feasible to grant extensions. o If Insight prepared an exemption form for Insight plans on filing all returns by May 15th but will you last year you may use it as a guide. announce if additional changes are made by State or Local agencies. ● Completed forms should be mailed or delivered Personal property tax exemptions to the Township assessor’s office or the County Governor Holcomb signed into law in 2019 a change assessor’s office as applicable. (addresses can be obtained from same website under Contact your Local Officials). ● Lastly, if Insight typically prepares your personal property tax forms please call our office and let us know that you are preparing your own exemption form so that we do not duplicate your efforts. A word from our Partners We are committed to serving clients with care, and are taking precautionary measures to promote the health and safety of our staff and clients. We have many staff working remotely and are increasing electronic usage as a way to transfer information with our clients. We may ask you to use our secure portals, courier service, or the mail instead of coming to our offices. We are an essential business and will remain open to serve you, and consult with you by phone, but we ask that you refrain from visiting us in person at this time. We will be more than happy to meet with you when it is considered safe to do so. Until then, we are here for you, and hope your family and our community stay safe. At special thanks to Sandy Dunbar and HR Collaboration Group for contributions to this update. 04

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