COVID-19 Weekly Digest - July 29, 2020
Perhaps the most challenging part of dealing with the COVID-19 pandemic is that many infected people never show symptoms or have such mild symptoms that it is easy to think that out-of-sorts feeling was due to a poor night of sleep. Some estimate that as many as 40% of those infected never exhibit symptoms, and these people could be shedding nearly as much contagious virus as those with full-blown symptoms. This high rate of asymptomatic cases combined with the lengthy 14-day incubation period makes it nearly impossible to develop mechanisms to keep the most vulnerable among us safe.
Until we find reliable methods of quick diagnosis and sure-fire protection, we may be living with the virus for some time to come. May that day come soon!
CARES ACT UPDATES
Cares Act 2
The debate is underway to pass the next pandemic stimulus bill. Details are still fuzzy, but here’s what is likely to be included:
A second round of $1,200 stimulus payments to taxpayers
The $600 additional federal unemployment benefits is set to expire July 31, to be replaced with something less generous
The second round of PPP-type support
Moratorium on evictions
An additional aid to states and schools
Student loan forbearance on a more limited scale
Liability shield for businesses
With the Senate set to recess on August 7, and the House on July 31, our senators and representatives don’t have much time to get a deal hammered out.
Paycheck Protection Program (PPP)
The SBA plans to open a portal on August 10 for lenders to submit PPP forgiveness applications. However, legislation is still pending to streamline forgiveness applications for loans under $150,000, which would make the process vastly easier for both borrowers and lenders. For those ready to get started on the process, the AICPA has created a tool that will create an online, digitally-signed forgiveness application. Here’s a video that demonstrates how the online tool works.
Economic Injury Disaster Loans (EIDL)
Since June 15, the SBA’s EIDL loan program has been accepting applications for loans of up to $2 million with interest rates of up to 3.75% for businesses and up to 2.75% for nonprofits. However, under pressure to get funds out the door quickly, the overwhelmed program has been plagued with allegations of fraud. Applicants have been using apartments as addresses where they claim to run businesses with ten or more employees. On the positive side, however, the SBA approved and disbursed twice as much money in three months under the CARES Act as in its entire 67-year history.
Employee Retention Credit
The IRS is in the process of revising Form 941, Form 943, Form 944, and Form CT-1 so that employers may claim the Employee Retention Credit on them. The agency has also released temporary regulations that will allow it to recapture excess funds in cases where erroneous refunds of this credit have been issued that are in excess of the amounts a company is entitled to.
TAX ISSUES
In response to the COVID-19 pandemic, the IRS introduced its People First Initiative, which had the goal of offering temporary relief by easing and suspending some enforcement actions from April 1 to July 15. Now that July 15 has passed, the IRS has added a series of FAQs for taxpayers who are having difficulty paying their taxes in full, or who already have installment agreements in place.
LIVING WITH AND AFTER THE PANDEMIC
Going back to work
Perhaps the biggest challenge for working parents is arranging for childcare while schools are delaying full re-opening. According to a recent survey of employers, only 32% have plans in place to help employees out with childcare. Companies are experimenting with approaches that include discounts on local daycare, flexible work schedules, and financial support. However, a long-term solution—while beneficial to the economy as a whole—remains elusive.
Work in the post-pandemic world
Researchers at McKinsey have identified four ways that CEOs have shifted their leadership style to be more impactful. What is yet unknown is whether these changes will endure. The rapid adjustments are inspiring them to aspire 10X higher as they see how much they were able to accomplish quickly. Others are finding that how they show up in work and life can be more impactful than accomplishing items on a to-do list: showing their humanity can be a powerful way to form a more cohesive team. Companies that embrace the interests of all stakeholders, including families, employees, communities, and customers, and not just the bottom line for their shareholders, have a competitive advantage. Strengthening the relationships in their networks of other CEOs means they can learn from each other.
Back to school
Last spring, many parents were juggling working at home and overseeing their children’s schooling, a nearly impossible task. Amy George, owner of a PR firm and mother of two middle-schoolers shared three ideas for how she hopes to make it all work. First, she’ll hire a homework coach to help her daughters learn organization skills and stay on top of homework. Next, weekly family meetings and daily check-ins will be a chance to discuss everyone’s assignments, projects, and the times when mom and dad have important meetings. Finally, her daughters will alternate “going to work” with mom by spending time co-working in her home office.
