Notices 2020-29 and Notice 2020-33
On May 12, the U.S. Treasury Department and the Internal Revenue Service (IRS) issued two notices that provide additional flexibility for employers with respect to cafeteria plans, health flexible spending arrangements (health FSAs), and dependent care flexible spending arrangements (dependent care FSAs):
The Department of Labor (DOL) and Treasury released guidance delaying certain participant deadlines. The rule is effective immediately and not subject to notice and comment.
Duration of Relief
The rule provides that in determining certain plan time frames, the duration of the “outbreak period” is to be disregarded. The outbreak period is the period from March 1, 2020 until 60 days after the end of the national emergency or another date announced by DOL and Treasury in a future notice.
An additional $321.3 billion has been infused into the Paycheck Protection Program, $310 billion of which is available for loans available through the U.S. Small Business Administration (SBA) designed to provide a direct incentive for small businesses to keep workers on the payroll.
The federal government is offering loans to help small businesses keep workers on their payroll and tax advantages to support businesses during the COVID-19 outbreak. Review these five provisions contained in the economic stimulus packages to see if they are right for your business:
The Paycheck Protection Program from the U.S. Small Business Administration (SBA) is a loan program designed to provide a direct incentive for small businesses to keep their workers on the payroll.
The SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
The Paycheck Protection Program will be available through June 30, 2020. Lenders may begin processing loan applications as soon as April 3, 2020.
To learn more, follow this link.