House Passes and President Signs CARES Act
Late Friday afternoon, the House passed and the President signed into law the CARES Act, a $2 trillion stimulus package that provides relief to individuals and businesses struggling as a result of the COVID-19 pandemic.
For the full Act in all its detail please see link:
Massachusetts extends tax deadline to July 15th
The Baker Administration announced earlier Friday that it is extending the Massachusetts State income tax filing deadline from April 15th to July 15th to match Federal Government’s deadline extension.
For additional details, follow this link to the Massachusetts DOR:
SBA Loans Program – Update Regarding Programs and Process
With the passing of the “The Coronavirus Aid, Relief, and Economic Security Act” (CARES Act), which included the “Paycheck Protection Program” (PPP), we wanted to provide additional information regarding several SBA loan programs aimed to assist businesses during this difficult time.
It should be noted that businesses are encouraged to consider submitting to multiple programs if they have been impacted by COVID 19. Qualified recipients should choose the one program that works best for their particular situation.
1) The “Paycheck Protection Program” (PPP) is the latest program under the CARES Act with the following features:
- This program will be administered through commercial banks/qualified lenders (not direct with the SBA) and contains favorable interest rates along with deferred payment features for loans up to $10 million.
- The SBA is working feverishly on developing the applications in order to get the program out to lending institutions. It may take several weeks until applications are available for businesses to apply.
- The purpose of the program is to inject 2.5 months of working capital into the small business for payroll, rent/interest on mortgage, utilities, etc. and contains specific loan size calculations based on average monthly payroll costs.
- This program has a “forgiveness” feature that allows principal amounts for the first 8-week period from deployment of the loan to be forgiven (or partially forgiven) depending on your employment levels by June 30, 2020.
- It should be noted that the SBA is required to issue regulations within 15 days from the Act’s signing.
For more specific details regarding the PPP program please see our previous article.
2) The Economic Injury Disaster Loan (EIDL) program is also available, which is applied for directly with the SBA:
- This program can provide up to $2 million of financial assistance at low interest rates (2.75% – 3.75%) along with deferral options and favorable amortization periods depending on your ability to pay.
- To qualify you must have sustained economic injury from the COVID 19 pandemic and be located in a disaster declared county.
For more details on the EIDL program and apply directly on SBA, see link below:
To review the forms required for the EIDL Submission, see links below:
- Disaster Business Loan Application (SBA Form 5):
- PFS (SBA Form 413): https://files.constantcontact.com/70236739001/2f754c65-2c9a-4e24-bfa6-c291985aaeb6.pdf
- Schedule of Liabilities (SBA Form 2202):
- Form 4506 Request for Transcript Of Tax Return:
The SBA Customer Service Line is available to field your questions at 1-800-659-2955
3) The SBA also has express bridge loans for up to $25,000 available to businesses awaiting longer term financing. This express program is administered by commercial lenders.
For more information regarding the express bridge loan program you can visit this link:
UPDATE – Employment/Unemployment Options for Employers in Response to COVID-19
The Covid-19 pandemic has provided a daily changing world of available information from the Commonwealth of Massachusetts for employers and employees. We are providing an update from our prior release of information dated March 25, 2020 which can be found here:
Since the publication, we have put together a list of useful resources from Mass.gov for employers and employees to better understand employee rights and employer obligations related to unemployment questions.
Employer Paid Leave Requirements
In the link below employers will find further information on what they are obligated to provide to their employees under the Families First Coronavirus Response Act such as, but not limited to:
- Paid Sick Leave
- Expanded Family and Medical Leave
- Qualifying Reasons for Leave
Employee Paid Leave Rights
In the link below employees will find further information on what their rights are under the Families First Coronavirus Response Act such as but not limited to:
- Eligible Employees
- Duration of Leave
- Calculation of Pay
Payroll Tax Credits
Employers who are required to provide Emergency Paid Sick Leave or FMLA to employees are eligible for a refundable tax credit against the employer’s portion of Social Security or Railroad Tax Act. The credit is equal to 50% of qualified wages paid to employees during a calendar quarter, up to the first $10,000 of wages per employee.
Payroll Tax Deferral
Employers can defer the employer’s portion of Social Security payroll taxes (6.2%) with respect to wages paid before January 1, 2021. 50% of an employer’s Social Security payroll taxes would not be due until December 31, 2021 with the remaining 50% deferred until December 31, 2022. We anticipate more details forthcoming regarding the mechanics of the actual deferrals.
Frequently Asked Questions
In our previous article “Employment Options for Employers in Response to COVID-19” we mentioned several options on how to handle the employment status of your personnel. Several of these options can leave employers and employees with more questions than answers. Below is a helpful link from Mass.gov that provides general guidance on some of the most frequently asked questions regarding COVID-19.
The COVID-19 pandemic has left many unemployed and struggling on where to start the unemployment process. The Division of Unemployment can provide assistance and can be reached at 617.626.6800 or
If a person contracts the virus for any work-related reason, that person could be eligible for workers’ compensation. If you qualify, you can receive payments to partially replace your paycheck and for medical care related to your injury. Learn more about workers’ compensation. In most cases, a claimant is not eligible for both unemployment benefits and workers’ compensation.
Department of Labor
The Department of Labor just recently put out two new Labor law posters specifically speaking to the Families First Coronavirus Response Act (FFCRA). Employers are required to provide this information to their employees either via e-mail or posted within their office in an open space where employees have access.
Employee Rights: Paid Sick Leave and Expanded Family and Medical Leave under The Families First Coronavirus Response Act (FFCRA) – Follow the link for details:
Federal Employee Rights: Paid Sick Leave and Expanded Family and Medical Leave under The Families First Coronavirus Response Act (FFCRA) – Follow the link for details:
Contact us directly at email@example.com should you have any further questions.