In the maelstrom of COVID-19, Wagenmaker & Oberly is continuing to provide dedicated service to nonprofits by addressing the legal aspects of COVID-19 related issues. Here are some resources we and others are developing for you and your organization:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act became effective on March 27, 2020. The Act allows for the injection of approximately $2.2 trillion into the economy to provide businesses and nonprofits with forgivable loans to avoid employee layoffs, to support the healthcare industry, to shore up other critical, adversely affected industries, and to create numerous other incentives for individuals, nonprofits, and businesses. Such unprecedented financial relief seeks to help our entire country weather the current financial, economic, and public health maelstrom.
This article focuses on provisions in the Act that will affect nonprofit organizations’ financial operations, their employer-related financial responsibilities, and financial assistance for employees and other individuals. The Act contains numerous additional provisions not covered in this article, many of which may affect specific individuals or businesses.
On Wednesday, March 18, 2020, Congress passed and President Trump signed into law the Families First Coronavirus Response Act (FFCRA), requiring employers to provide certain sick pay and family medical leave benefits to eligible employees affected by the coronavirus pandemic. The FFCRA requires the federal government to cover the cost of the required benefits on an almost real-time basis via refundable payroll tax credits. While there are still some areas of the new law that lack clarity, we have summarized the currently available guidance regarding required payments and the related payroll tax credits below, along with Q&A and Examples to help your organization digest the technical provisions therein.