Relief for Businesses and Displaced Workers
At UPM we see the impact that COVID-19 is having on the restaurant and business tenants that we serve. We hope that this financial information will be helpful to you as you navigate the situation at hand.
Below is the latest from our tax professional that we partner with:
At UPM we see the impact that COVID-19 is having on the restaurant and business tenants that we serve. We hope that this financial information will be helpful to you as you navigate the situation at hand.
Below is the latest from our tax professional that we partner with:
While the full final text of the bill has not yet been released, reports and comments from those familiar with the negotiations note the following:
Increased unemployment benefits: Increases the current maximum unemployment benefit by $600 per week and ensures that laid-off workers, on average, will receive their full pay for four months. According to a letter Senator Schumer (D-NY) sent to colleagues, the bill “ensures that all workers are protected whether they work for businesses small, medium, or large, along with self-employed and workers in the gig economy.”
Retention tax credit: Adds a retention tax credit for employers to encourage businesses to keep workers on payroll during the crisis.
Paycheck Protection Program: Provides $350 billion for eight weeks of cash-flow assistance through 100 percent federally guaranteed loans. The covered costs include payroll support, employee salaries, rent, utilities, and other debt obligations. Loans will be available immediately through more than 800 existing SBA-certified lenders, including banks, credit unions, and other financial institutions. The size of the loans will equal 250 percent of an employer’s average monthly payroll, with a maximum loan of $10 million.
Paycheck Protection Program loan forgiveness: Makes rent, mortgage, payroll, and utility costs eligible for SBA loan forgiveness. If the employer maintains its payroll, then the portion of the loan used for covered payroll costs, interest on mortgage obligations, rent, and utilities would be forgiven. (The loan essentially turns into a grant.)
Six months of debt relief: Provides $17 billion for the SBA to cover six months of principal, interest, and fees for small businesses with SBA loans granted before the COVID-19 outbreak.
SBA emergency grants: Allows businesses that apply for an SBA Economic Injury Disaster Loan (EIDL) expedited access to capital through an emergency grant — an advance of $10,000 within three days to maintain payroll, provide sick leave, and to service other debt obligations.
Entrepreneurial assistance: Provides $10 million for the Minority Business Development Agency and $265 million for grants to SBA resource partners like Small Business Development Centers and Women’s Business Centers to offer counseling, training, and general assistance to small businesses.
Recovery rebates: Calls for direct payments of up to $1,200 for individuals earning up to $75,000 or $2,400 for married couples filing jointly earning up to $150,000. The amount will increase by $500 for each qualifying child and decrease as income increases, phasing out completely at $99,000 for individuals and $198,000 for married filing jointly.
Deferral of employer-side payroll taxes: Defers the employer-side of payroll taxes to be paid back in coming years.
Recovery rebates: The bill provides for payments to taxpayers — “recovery rebates” — which are being treated as advance refunds of a 2020 tax credit. Under this provision, individuals will receive a tax credit of $1,200 ($2,400 for joint filers) plus $500 for each qualifying child. The credit is phased out for taxpayers with adjusted gross income (AGI) above $150,000 (for joint filers), $112,500 (for heads of household), and $75,000 for other individuals. The credit is not available to nonresident aliens, individuals who can be claimed as a dependent by another taxpayer, and estates and trusts. Taxpayers will reduce the amount of the credit available on their 2020 tax return by the amount of the advance refund payment they receive.
Payroll tax credit refunds: The bill provides for advance refunding of the payroll tax credits enacted last week in the Families First Coronavirus Response Act, P.L. 116-127. The credit for required paid sick leave and the credit for required paid family leave can be refunded in advance using forms and instructions the IRS will provide. The IRS is instructed to waive any penalties for failure to deposit payroll taxes under Sec. 3111(a) or 3221(a) if the failure was due to an anticipated payroll tax credit.
Employee retention credit: The bill creates an employee retention credit for employers that close due to the coronavirus pandemic. Eligible employers are allowed a credit against employment taxes equal to 50% of qualified wages (up to $10,000 in wages) for each employee. Eligible employers are employers who were carrying on a trade or business during 2020 and for which the operation of that business is fully or partially suspended due to orders from an appropriate governmental authority limiting commerce, travel, or group meetings due to the COVID-19 outbreak. Employers that have gross receipts that are less than 50% of their gross receipts for the same quarter in the prior year are also eligible, until their gross receipts exceed 80% of their gross receipts for the same calendar quarter in the prior year. For employers with more than 100 employees, wages eligible for the credit are wages that the employer pays employees who are not providing services due to the suspension of the business or a drop in gross receipts. For employers with 100 or fewer employees, all wages paid qualify for the credit.
Retirement plans: Taxpayers can take up to $100,000 in coronavirus-related distributions from retirement plans without being subject to the Sec. 72(t) 10% additional tax for early distributions. Eligible distributions can be taken up to Dec. 31, 2020. Coronavirus-related distributions may be repaid within three years. For these purposes, an eligible taxpayer is one who has been diagnosed with SARS-CoV-2 virus or COVID-19 disease or whose spouse or dependent has been diagnosed with SARS-CoV-2 virus or COVID-19 disease or who experiences adverse financial consequences from being quarantined, furloughed, or laid off, or who has had his or her work hours reduced, or who is unable to work due to lack of child care. Any resulting income inclusion can be taken over three years. The bill also allows loans of up to $100,000 from qualified plans, and repayment can be delayed.
The bill temporarily suspends the required minimum distribution rules in Sec. 401 for 2020.
The bill delays 2020 minimum required contributions for single-employer plans until 2021.
Charitable deductions: The bill creates an above-the-line charitable deduction for 2020 (not to exceed $300). The bill also modifies the AGI limitations on charitable contributions for 2020, to 100% of AGI for individuals and 25% of taxable income for corporations. The bill also increases the food contribution limits to 25%.
Payroll tax delay: The bill delays payment of 50% of 2020 employer payroll taxes until Dec. 31, 2021; the other 50% will be due Dec. 31, 2022. For self-employment taxes, 50% will not be due until those same dates.
Net operating losses: The bill temporarily repeals the 80% income limitation for net operating loss deductions for years beginning before 2021. For losses arising in 2018, 2019, and 2020, a five-year carryback is allowed (taxpayers can elect to forgo the carryback).
Health plans: The rules for high-deductible health plans (HDHPs) are amended to allow them to cover telehealth and other remote care services without charging a deductible.
Environmental Cleaning and Disinfection Recommendations
With the spread of COVID-19 here we are sharing some precautions that can be taken.
Here at UPM we are closely monitoring the evolving situation with COVID-19. We are supporting each of our properties as they navigate how to maintain their spaces with preventative measures and additional cleaning procedures.
The CDC has released Interim Recommendations for US Community Facilities with Suspected/Confirmed Coronavirus Disease 2019, and we are sharing an excerpt of that here today.
Please take necessary precautions to stay safe at this time. These steps do not replace the current recommendations for social distancing and staying home to reduce potential contact with or spread of the virus.
(see below)
How to Clean and Disinfect
Surfaces
If surfaces are dirty, they should be cleaned using a detergent or soap and water prior to disinfection.
For disinfection, diluted household bleach solutions, alcohol solutions with at least 70% alcohol, and most common EPA-registered household disinfectants should be effective.
Diluted household bleach solutions can be used if appropriate for the surface. Follow manufacturer’s instructions for application and proper ventilation. Check to ensure the product is not past its expiration date. Never mix household bleach with ammonia or any other cleanser. Unexpired household bleach will be effective against coronaviruses when properly diluted.
Prepare a bleach solution by mixing:
5 tablespoons (1/3rd cup) bleach per gallon of water or
4 teaspoons bleach per quart of water
Products with EPA-approved emerging viral pathogens claims are expected to be effective against COVID-19 based on data for harder to kill viruses. Follow the manufacturer’s instructions for all cleaning and disinfection products (e.g., concentration, application method and contact time, etc.).
For soft (porous) surfaces such as carpeted floor, rugs, and drapes, remove visible contamination if present and clean with appropriate cleaners indicated for use on these surfaces. After cleaning:
If the items can be laundered, launder items in accordance with the manufacturer’s instructions using the warmest appropriate water setting for the items and then dry items completely.
Otherwise, use products with the EPA-approved emerging viral pathogens claims (examples at this link) that are suitable for porous surfaces
Linens, Clothing, and Other Items That Go in the Laundry
Do not shake dirty laundry; this minimize the possibility of dispersing virus through the air.
Wash items as appropriate in accordance with the manufacturer’s instructions. If possible, launder items using the warmest appropriate water setting for the items and dry items completely. Dirty laundry that has been in contact with an ill person can be washed with other people’s items.
Clean and disinfect hampers or other carts for transporting laundry according to guidance above for hard or soft surfaces.
Personal Protective Equipment (PPE) and Hand Hygiene:
Cleaning staff should wear disposable gloves and gowns for all tasks in the cleaning process, including handling trash.
Gloves and gowns should be compatible with the disinfectant products being used.
Additional PPE might be required based on the cleaning/disinfectant products being used and whether there is a risk of splash.
Gloves and gowns should be removed carefully to avoid contamination of the wearer and the surrounding area. Be sure to clean hands after removing gloves.
Gloves should be removed after cleaning a room or area occupied by ill persons. Clean hands immediately after gloves are removed.
Cleaning staff should immediately report breaches in PPE (e.g., tear in gloves) or any potential exposures to their supervisor.
Cleaning staff and others should clean hands often, including immediately after removing gloves and after contact with an ill person, by washing hands with soap and water for 20 seconds. If soap and water are not available and hands are not visibly dirty, an alcohol-based hand sanitizer that contains 60%-95% alcohol may be used. However, if hands are visibly dirty, always wash hands with soap and water.
Follow normal preventive actions while at work and home, including cleaning hands and avoiding touching eyes, nose, or mouth with unwashed hands.
Additional key times to clean hands include:
After blowing one’s nose, coughing, or sneezing
After using the restroom
Before eating or preparing food
After contact with animals or pets
Before and after providing routine care for another person who needs assistance (e.g., a child)
Additional Considerations for Employers:
Employers should work with their local and state health departments to ensure appropriate local protocols and guidelines, such as updated/additional guidance for cleaning and disinfection, are followed, including for identification of new potential cases of COVID-19.
Employers should educate staff and workers performing cleaning, laundry, and trash pick-up activities to recognize the symptoms of COVID-19 and provide instructions on what to do if they develop symptoms within 14 days after their last possible exposure to the virus. At a minimum, any staff should immediately notify their supervisor and the local health department if they develop symptoms of COVID-19. The health department will provide guidance on what actions need to be taken. When working with your local health department check their available hours.
Employers should develop policies for worker protection and provide training to all cleaning staff on site prior to providing cleaning tasks. Training should include when to use PPE, what PPE is necessary, how to properly don (put on), use, and doff (take off) PPE, and how to properly dispose of PPE.
Employers must ensure workers are trained on the hazards of the cleaning chemicals used in the workplace in accordance with OSHA’s Hazard Communication standard (29 CFR 1910.1200).
Employers must comply with OSHA’s standards on Bloodborne Pathogens (29 CFR 1910.1030), including proper disposal of regulated waste, and PPE (29 CFR 1910.132).