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Relief for Taxpayers and Employers Affected by the Pandemic – What Does Relief Look Like?

Relief for Taxpayers and Employers Affected by the Pandemic – What Does Relief Look Like?

Sherwood Tax has been on the phone and responding to emails from you trying to help navigate the COVID19 situation we are dealing with.  We are working to be your resource to manage, prepare and plan for the many decisions you are faced with during a time of business closures and employment layoffs. 

We will bring you up-to-date information as we receive guidance from government agencies and other local business owners.

Filing Deadline extended to July 15, 2020 – What does this mean?

The Federal tax return filing and payment date was automatically extended to July 15, 2020. You do not need to file an extension.  

The relief includes Federal estimated tax payments due on April 15, 2020 for the 2020 tax year.

We are still waiting to hear if Oregon also grants that additional time.

Stimulus payments to Taxpayers

You may have heard about payments to taxpayers based on your 2018 or 2019 tax returns.  We do not have concrete information on these payments yet but will keep you posted as soon as we learn more information.

If you receive calls, emails, or other communications claiming to be from the Treasury Department and offering COVID-19 related grants or stimulus payments in exchange for personal financial information, or an advance fee, tax, or charge of any kind, including the purchase of gift cards, please do not respond.  These are scams.  

Unemployment Insurance

Many employers have questions about unemployment insurance and how to help their employees during this unprecedented time of closing down and shutting the doors.

You may be an employer who has  laid off workers or you are an employee who has been laid off on a temporary basis in order to  claim unemployment benefits. Here are Worksource Oregon COVID19 Resources and guidelines for employers and workers during this time.

Unemployment benefits may be available to those who are on a temporary layoff. These benefits occur for claimants whose employer stops operation for a short period of time due to a government requirement. Workers can get UI benefits, and do not need to seek work with other employers. They must be able to work, stay in contact with you as their employer, and be available to work when you call them back.​

Unemployment Insurance is just like other types of insurance.  As an employer you have been paying in “premiums” and the benefits will be paid out to your employees without additional cost to you.  If you are an Owner/officer you will only be able to get unemployment benefits if you paid insurance on your wages. Many owners are exempt from paying Unemployment Insurance on their wages which means you may NOT be able to claim benefits.  

Work Share provides an alternative for employers and workers who may be facing the prospect of a lay off situation. With Work Share, instead of reducing staff, an employer reduces the hours of work for a group of workers. Partial Unemployment Insurance benefits are then paid to supplement workers’ reduced wages.  

 Families First Coronavirus Act (HR 6201) – SUMMARY

This legislation passed on March 18, 2020 allocates resources to help with coronavirus protection.  Here is a link to more information Coronavirus Emergency Funding Bill

This legislation provides funds for employees to help cover paid sick leave and other emergency leave for employees so that they stay home and prevent the spread of the disease.  

Small businesses with fewer than 50 employees may be exempt if the leave would jeopardize the viability of their business. Employers with fewer than 25 employees may be exempt from certain provisions related to job protection.

The legislation provides federal tax credits of 100% of wages paid for Emergency Family and Medical Leave or Emergency Paid Sick Leave.  These credits are limited but do provide a reduction of current payroll taxes which gives immediate cash flow benefits to employers who are paying out sick and family leave.

Emergency Family and Medical Leave Expansion Act leave (EFMLEA) is available to those who cannot work due to need to care for themselves or a child under age 18 because a school or care center has been closed due to an emergency. 

Emergency Paid Sick Leave (EPSLA) – Employers must provide 80 hours of paid sick time to full time employees who are unable to work (or telework) for virus-related reasons.  

Self Employed individuals can also receive a credit for up to 50 days multiplied by  $200 or 67% of self employment income (whichever is lower)

Disaster Loan Assistance from the SBA 

If you are a small business who needs immediate assistance with cash flow, you can apply for an economic injury disaster loan   The interest rate on these loans will not exceed 4% and the payment terms will be based on your ability to pay the loan back up to 30 years.  

Please let us know if you have questions, we are here to help you through this unprecedented economic crisis.