As the coronavirus (COVID-19) continues to impact our workplaces and communities, there is new legislation we want to make you aware of.
Sick Leave/Family & Medical Leave:
Effective April 2, 2020, the Families First Coronavirus Response Act temporarily mandates that certain public businesses with fewer than 500 employees provide their eligible employees with:
Expanded FMLA Leave: Up to 12 weeks of job-protected, partially paid family and medical leave for qualifying employees who are unable to work (or telework) due to COVID-19.
Emergency Paid Sick Leave: Up to 10 days (80 hours) of paid sick leave at their regular rate of pay, with a cap of $511 per day for qualifying employees unable to work (or telework) due to COVID-19.
Tax Credits: Employers can offset payments under these leave programs through refundable tax credits against their share of quarterly Social Security taxes.
Effective immediately, New York State is also requiring employers to provide employees who are quarantined due to COVID-19 with paid and/or unpaid sick leave, depending on the number of employees and net income of the business. For more information please click here.
New York City Small Business Association (SBA) Economic Injury Disaster Loans: Small businesses can apply for long-term, low interest loans of up to $2 million to pay fixed debts, payroll, accounts payable and other bills that can't be paid due to COVID-19. For more information, please click here.
New York City Small Business Continuity Fund (SBCF): Businesses with fewer than 100 employees that experience a 25% or more decrease in revenue due to COVID-19 may be eligible for zero interest loans of up to $75,000 to help mitigate losses. For more information please click here.
New York City Employee Retention Grant Program (ERGP): Businesses with fewer than five employees can apply for a grant of up to $27,000 to cover 40% of payroll costs for two months, in order to help retain employees. For more information please click here.
Coronavirus Aid, Relief, and Economic Security (CARES) Act: Additional relief legislation is pending before Congress. The relief package being negotiated would potentially provide up to $350 billion in small business loans to help businesses with fewer than 500 employees impacted by COVID-19 cover payroll and other expenses. The proposal is for loans of up to $10 million, which may be forgiven in whole or in part in certain circumstances. In addition, there are proposed tax deferments of certain payroll taxes.
We will keep you updated on federal and state legislative developments impacting your business as they unfold in the coming weeks.