CARES Act Employee Retention Credit; NY Insurance Relief; and Small Business Grants

Employee Retention Credit under the CARES Act

• Refundable payroll tax credit for Eligible Employers equal to 50% of Qualifying Wages paid after March 12, 2020 and before January 1, 2021
• Eligible Employers: either had operations fully or partially suspended as a result of a government order limiting commerce, travel, or group meetings OR had greater than 50% reduction in quarterly gross receipts
• Qualifying Wages: up to $10,000 per employee (max credit is $5,000 per employee)
• Exclusions:
• Employers that received a PPP loan cannot claim this credit
• Self-employed individuals cannot claim the credit for their services or earnings
• Government employers are ineligible
• Excludes wages taken into account for other payroll tax credits
• If more than 100 full-time employees on average in 2019, only the wages paid to an employee for the time the employee is not providing services qualify

More information is available here: https://www.irs.gov/newsroom/faqs-employee-retention-credit-under-the-cares-act

 NY Insurance Relief – Executive Order 202.13 & 202.14

• Grace period for payments of premiums and fees for life insurance policyholders facing financial hardship is extended to 90 days
• Life insurance policyholders, annuity contract holders, or certificate holders under the Insurance Law who are unable to timely exercise rights or benefits as a result of COVID-19 are provided with 90 days to exercise rights or benefits under the applicable policy or contract
• 60-day moratorium on certain insurers cancelling, non-renewing, or conditionally renewing an insurance policy issued to an individual or small business
• Extended period for payment of premiums to the later of the expiration of the applicable contractual grace period and 11:59pm on June 1, 2020, for any comprehensive health insurance policyholder or contract holder under an individual policy or contract, who is facing a financial hardship as a result of the COVID-19 Pandemic
  • Applicable insurers must be responsible for the payment of claims during the above period and cannot retroactively terminate the insurance policy or contract for non-payment of premiums during such period

More information is available here: https://www.governor.ny.gov/news/no-20213-continuing-temporary-suspension-and-modification-laws-relating-disaster-emergency; https://www.dfs.ny.gov/system/files/documents/2020/03/re_consolidated_amend_pt_405_27a_27c_new_216_text.pdf; https://www.governor.ny.gov/news/no-20214-continuing-temporary-suspension-and-modification-laws-relating-disaster-emergency

 U.S. Chamber of Commerce Small Business Grants

• The U.S. Chamber of Commerce began offering $5,000 grants to small businesses with 3 to 20 employees at noon on April 20, 2020
• The business must be located in an economically vulnerable community and have been harmed financially by COVID-19 – the online application will let you know if you qualify based on zip code

Application available here: https://savesmallbusiness.com/ 

The Attorneys at Levene Gouldin & Thompson, LLP are available to provide advice and counsel concerning matters related to COVID-19.