Path Forward Webinars - Rochester Area Chamber of Commerce

The COVID-19 pandemic is unprecedented in our modern time - posing a set of significant challenges and causing prolonged disruption to our daily way of life. In response, the Chamber launched the Path Forward webinar series to connect members to the resources, information, and expert advice needed to sustain operations and rebound quickly.

Email Updates

Path Forward Email Update - August 27, 2021

Vaccine Update

In light of the FDA’s final approval of the Pfizer vaccine, President Biden recently asked employers to mandate vaccines. President Biden said, “Do what I did last month. Require your employees to get vaccinated or face strict requirements.”

As the President’s comment suggests, vaccine mandates were allowed even before the Pfizer vaccine received full FDA approval. According to the Department of Justice, emergency-approval status simply required that potential recipients be informed that it was their “choice to receive or not receive [the vaccine].” Employer policies that preserved an employee’s ultimate choice to refuse an emergency-approved vaccine were acceptable, even if vaccine refusal came with severe adverse consequences.

The consensus view is that Minnesota employers may lawfully follow the President’s advice and condition employment on vaccination status. Minnesota is not among the states that have banned vaccine mandates. In addition, Minnesota recognizes “at-will” employment. An employee can quit for any reason; an employer can fire an employee for any reason as long as that reason is not illegal.

There are circumstances where vaccination-status discrimination may be illegal. EEOC guidance expresses concern that vaccine mandates may disproportionately exclude employees based on their race, color, religion, sex, or national origin: “Employers should keep in mind that because some individuals or demographic groups may face greater barriers to receiving a COVID-19 vaccination than others, some employees may be more likely to be negatively impacted by a vaccination requirement.”

The EEOC also states Title VII and the ADA may require reasonable accommodations for employees who choose against getting vaccinated because of a disability or a sincerely held religious belief. Possible reasonable accommodations for these employees include wearing a face mask, working at a social distance from coworkers, working a modified shift, getting periodic tests for COVID-19, being given the opportunity to telework, or accepting a reassignment.

Dunlap & Seeger client alert sent at 10:06am on Thursday, August 26. Forwarded by the Rochester Area Chamber of Commerce at 1:50pm on Thursday, August 26.

Business Updates

The American Rescue Plan Act of 2021 (ARPA) provides additional COVID-19 relief to individuals and businesses. Among the relief targeted at businesses is aid for restaurants, shuttered venues, and other small businesses.

The State Small Business Credit Initiative Act (SSBCI) was amended to receive a $10 billion allocation to support small businesses affected by COVID-19, ensure business enterprises owned and controlled by socially and economically disadvantaged individuals have access to credit and investments, provide technical assistance to small businesses, and pay administration costs. $500 million is allocated separately for distribution among Tribal governments.
The Restaurant Revitalization Fund provides a $28.6 billion relief package for operators of twenty or fewer restaurants. The relief will take the form of grants in amounts of up to $5 million per physical location, and a maximum of $10 million per eligible entity. The grants may be used to cover a wide range of expenses. For the initial 21-day period of this program, priority will be given to eligible entities owned and controlled by women, veterans, or socially and economically disadvantaged groups.
The Shuttered Venue Operators Grant program received an additional $1.25 billion to supplement the previous $15 billion available for grants to owners of struggling live venues, museums and related businesses. Businesses may now apply for both a PPP loan after Dec. 27, 2020, and a Shuttered Venue Operator Grant.
The Paycheck Protection Program received an additional appropriation of $7.25 billion to further assist its goals. In addition, ARPA made changes pertaining to the forgiveness of certain covered loans.

Employer Updates

The Families First Coronavirus Response Act (FFCRA) provided emergency paid sick leave, as well as expanded family and medical leave for employees absent from work for COVID-19 related reasons. Employers could begin providing FFCRA paid leave on January 1, 2021. Qualifying employers who chose to provide FFCRA paid leave were allowed to take a dollar-for-dollar payroll tax credit through March 31, 2021 for wages paid.

ARPA extends the availability of the FFCRA tax credit through September 30, 2021. In addition, ARPA amends coverage and eligibility in several significant ways:

ARPA Expanded Coverage for Paid Sick Leave allowing employees to take paid sick leave in order to obtain a COVID-19 vaccine or recover from the side effects. In addition, paid sick leave is now available to employees obtaining or waiting for the results of a COVID-19 test requested by an employer or following exposure.
ARPA provides Additional Paid Sick Leave for employees who previously took sick leave. These employees are eligible for an additional 10 days of sick leave beginning April 1, 2021. Unused leave from prior to March 31, 2021 does not roll over.
The Family and Medical Leave Act (FMLA) was previously expanded to be available only to those employees taking care of a child whose school or place of care was closed or unavailable due to COVID-19. ARPA further expands FMLA leave for any of the qualifying reasons listed in the FFCRA. Paid expanded FMLA is capped at 12 weeks. Employees are no longer subject to a waiting period.
The Cap for Expanded FMLA has been increased from $10,000 to $12,000 due to the two additional weeks of paid leave. The daily limit of two-thirds on an employee’s wages- up to $200 per workday- remains the same.
Employers are only eligible for the tax credit if they provide leave to all employees in a uniform manner, without discriminating against employees based on categories such as full-time employment or tenure.

Tax Considerations

Employee Retention Credit (ERC)

Previous legislation extended ERC through June 30, 2021, and the Act extends the credits through the end of 2021. Qualifying employers include those whose operations were fully or partially suspended due to a government order and those that have suffered at least a 20% decline in gross receipts in a 2021 calendar quarter as compared to the same quarter in 2019. Employers only need to meet one of these tests, they do not need to meet both tests. Additionally, an employer that experienced at least a 20% decline in gross receipts in the 4th quarter of 2020 as compared to the 4th quarter of 2019 is eligible to claim the ERC for the 1st quarter of 2021.

A qualifying employer is eligible to claim payroll tax credits for 70% of each employee’s qualifying payroll (including employer paid health insurance) up to a maximum wage of $10,000 per employee, for the qualifying quarter and the succeeding quarter. The maximum credit is $7,000 per employee, per quarter.

Unemployment Benefits

The Act makes the first $10,200 of unemployment benefits per individual tax-free in 2020 for taxpayers earning less than $150,000 per year.

Recovery Rebates

The Act creates a third round of economic impact payments to be sent to qualifying individuals. The amount of the credit is $1,400 ($2,800 for married taxpayers filing jointly) plus $1,400 for each qualifying dependent including college students and qualifying relatives who are claimed as dependents. Taxpayers with income below $150,000 ($75,000 for single) are qualified to receive this round of payments.

Child tax credit

The Act expands the existing child tax credit and makes provisions that allow taxpayers to receive the credit in advance of filing an income tax return. The credit phases out for married filing joint taxpayers with incomes over $150,000 ($75,000 for single). The IRS has been directed to estimate a taxpayer’s credit and pay this amount monthly in advance in one-twelfth of the annual estimated amount. The payments are to run from July through December 2021.

Child and Dependent Care Credit

The Act makes various changes to this credit. Effective for 2021 only, the credit is refundable. The credit is worth 50% of eligible expenses, up to a limit that is based on income.

Cobra Continuation Coverage

The Act provides COBRA continuation coverage premium assistance for those who are eligible for COBRA from the date of enactment through September 30, 2021. The credit is refundable, and the IRS may make advance payments.

Webinars

Vaccine Strategy Information for Business | February 11, 2021 | Olmsted County Slides | Dunlap & Seeger Slides

New Federal Pandemic Relief | January 8, 2021 | Slides

Considerations for 2020 Q4 Planning | October 28, 2020 | Slides

New Grants Available for Small Business: Learn How to Apply for a Piece of the Pie | August 10, 2020 | Slides

Masking: Tips and Tools to Promote Public Health, Compliance, and Ensure Customer Safety | July 29,2020 | Slides

PPP - Breaking Down the Recent Legislation | June 10, 2020 | Slides

Guidance for Reopening Your Restaurants and Bars SAFELY | June 5, 2020 | Handout | Slides

PPP: Ensuring Compliance & Maximum Forgiveness | May 27, 2020 | Slides

Marketing Innovations - New Tools & Techniques | May 14, 2020

Deep Dive in Reopening Your Business Safely | May 12, 2020 | Slides

Small Business Continuity - Your Operational Checklist | May 7, 2020 | Slides