What Does the Coronavirus Response Act Mean For You?

What Does the Coronavirus Response Act Mean For You?

By Daniel A. Perry, Esq.

Updated — March 23, 2020:

As of March 20, 2020, the Department of Treasury announced the following COVID-19 tax deadline guidelines, giving certain taxpayers and businesses an additional 90 days to file and pay their 2019 tax liability. Both the tax filing deadline and tax payment deadline have been extended to July 15, 2020. We will continue to update this information as it changes to keep you up to date.

On March 18, 2020, The Families First Coronavirus Response Act passed the U.S. Senate with a vote of 90-8. During the evening, President Donald J. Trump signed the bill into law officially enacting this new groundbreaking piece of legislation as the United States, and the world, continue to fight the spread of COVID-19.

However, what does this mean for you? Depending upon whether you are an employee or a business owner, there are additional requirements, benefits, and obligations which may apply to you going forward.

The most notable provisions of the new law include the following obligations which apply to employers of 500 employees or less:

  • Family Medical Leave Act leave now applies to your business, which includes the following:
    • Up to 12 Weeks of Medical Leave
    • 2 Weeks at Full Pay
    • Any additional weeks at no less than 2/3 of the employee’s usual pay
  • Eligible employees must either be infected with the coronavirus and required to quarantine, or must have a family member infected living in the same household and therefore, required to quarantine.
  • Employers are entitled to a 100% tax credit of the wages paid out during this time for any leave by affected employees.
  • Two weeks of paid sick-leave for employees infected with the coronavirus and seeking treatment from the virus is also included in this law.
  • In addition, eligible employees also include employees who have a child whose school or childcare facility is closed due to the coronavirus. In these specific instances, the employee is entitled to paid leave for up to 12 weeks for not less than 2/3 of their regular pay.

Tax Collecting and Reporting Changes

Somewhat related to the Families First Coronavirus Response Act, are tax collecting and tax reporting changes which were implemented by the United States Treasury.

On March 13, 2020, President Trump issued an emergency declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act. Specifically, this instructed the Secretary of the Treasury to provide relief from tax deadlines to Americans.

The relief being provided includes:

  • Federal Income Tax Payments for Individuals due on April 15, 2020 up to $1,000,000.00 is now postponed until July 15, 2020.
  • Federal Income Tax Payments for Corporations due on April 15, 2020 up to $10,000,000.00 are now postponed until July 15, 2020.

However, the tax filing deadline of April 15, 2020 has NOT been extended. Simply, the tax payment due dates of April 15 have been extended, without interest and penalties, until July 15th. The American Institute of CPAs have recently appealed to the Secretary of the Treasury to postpone the filing deadlines to be in line with tax due date deadlines. However, for the time being, that is not the case.

Please note — this does not affect state income and local income tax payment and reporting deadlines. You need to make sure you check with your tax professional or local agency to determine if these deadlines have been changed.

For more information

The attorneys at Aronoff, Rosen & Hunt are here to assist you navigate this new law whether you are an individual, family, or business owner. As with any new law, we are never certain how the law will be interpreted in the months and years ahead. However, if you have any questions about the Families First Coronavirus Response Act and the affect it may have to your business and family, please contact our office. We are available to speak with you by telephone as we all get through this public health crisis together!

Contact our office at (513) 241-0400 or fill out the contact form on our website to speak with one of our knowledgeable attorneys so you can effectively navigate the Families First Coronavirus Response Act.