Insights Archive - Ogletree Deakins

Consolidated Appropriations Act of 2021: Updates to Paycheck Protection Program

On December 27, 2020, President Trump signed into law Congress’s spending bill, the Consolidated Appropriations Act (CAA), 2021, which included the Additional Coronavirus Response and Relief (ACRR) provisions that modified the Small Business Administration’s (SBA) Paycheck Protection Program (PPP). The PPP, a loan program designed to provide a direct incentive to businesses to retain their employees, was enacted under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. PPP borrowers are eligible for loan forgiveness if the funds are used for eligible payroll and non-payroll costs.

Michael K. Mahoney Morristown Author

Randle B. Pollard Washington D.C. Author

Matthew Hoffman Indianapolis Author

Hillary M. Sizer Chicago Author

Beltway Buzz, August 14, 2020

The Beltway Buzz is a weekly update summarizing labor and employment news from inside the Beltway and clarifying how what’s happening in Washington, D.C. could impact your business.

James J. Plunkett Washington D.C. Author

Executive Memorandum Permits Individuals to Defer Certain Payroll Tax Obligations

On August 8, 2020, President Trump issued a memorandum with the stated purpose of providing “further temporary relief … to support working Americans” by enabling the deferral of employee Social Security taxes for specific individuals.

Michael K. Mahoney Morristown Author

Shivam K. Bimal New York Author

Randle B. Pollard Washington D.C. Author

IRS Continues to Provide Relief for Nonresident Aliens in the Wake of COVID-19

The Internal Revenue Service (IRS) recently posted a set of frequently asked questions (FAQs) on its website to provide additional information on Revenue Procedure 2020-20. The IRS published this revenue procedure on May 11, 2020, to provide relief for certain nonresident aliens stranded in the United States due to COVID-19-related travel restrictions. The new FAQs provide relief for certain nonresident aliens who may be forced to remain in the United States longer than anticipated because of a medical condition. As indicated in our prior article on Revenue Procedure 2020-20, an extended stay could adversely affect a nonresident alien’s classification for federal income tax purposes.

Deborah Andrews Washington D.C.
Raleigh Author

Michael K. Mahoney Morristown Author

Randle B. Pollard Washington D.C. Author

IRS Provides Relief for Nonresident Aliens Affected by COVID-19 Travel Disruptions

Because of travel restrictions, such as canceled flights and stay-at-home orders, the COVID-19 pandemic may have significantly limited a nonresident alien’s ability to leave the United States, regardless of whether the individual contracted the COVID-19 virus. An unexpected extended stay in the United States, however, could affect an individual’s tax residency classification or eligibility for certain tax treaty benefits. The Internal Revenue Service (IRS) recently released Revenue Procedure 2020-20 to address the potential tax consequences for eligible individuals impacted by the COVID-19 travel restrictions.

Deborah Andrews Washington D.C.
Raleigh Author

Randle B. Pollard Washington D.C. Author

Michael K. Mahoney Morristown Author

IRS Updates FAQs on Employee Retention Credit Under the CARES Act

On April 29, 2020, the Internal Revenue Service (IRS) provided additional guidance on the employee retention credit (ERC) available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act via new frequently asked questions (FAQs).

Michael K. Mahoney Morristown Author

Randle B. Pollard Washington D.C. Author

Shivam K. Bimal New York Author

IRS Issues Update to Form 941 for COVID-19 Related Employment Tax Credits and Other Tax Relief

On April 30, 2020, the Internal Revenue Service (IRS) released a draft of Form 941, Employer’s QUARTERLY Federal Tax Return, and accompanying instructions. The revised Form 941 includes various additional entries to report and reconcile payroll tax credits and deferral opportunities available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and Families First Coronavirus Response Act (FFCRA).

Michael K. Mahoney Morristown Author

Randle B. Pollard Washington D.C. Author

Shivam K. Bimal New York Author

Multi-State Payroll Withholding Issues and Potential Relief for Telecommuting Employees

The “shelter in place” or “stay-at-home” orders that numerous states have issued in response to the COVID-19 pandemic have prompted some employers to require that their employees work remotely from their homes. As states roll back these orders, some employers will continue to have employees telecommute as they prepare their return-to-work strategies. Working from home or telecommuting may create a business presence in a state that establishes nexus, obligating nonresident employers to withhold state and local payroll taxes.

Randle B. Pollard Washington D.C. Author

Deborah Andrews Washington D.C.
Raleigh Author

Michael K. Mahoney Morristown Author

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