COVID-19 Weekly Digest (August 26, 2020)
In the past, automation and technological advances created more jobs than it disrupted, and innovation has greatly improved our lives. However, as this article in the Wall Street Journal reports, economists caution that the COVID-19 pandemic may have accelerated the changes that have already been happening for the last several decades which may be creating a divide between skilled and low-skilled workers. “For many professionals, technology has been a lifeline during the pandemic, enabling them to be productive while stuck at home. For many other workers, it is a new dividing line, corralling them further into the stagnant corners of the economy.” The challenge for the future will be to help people whose livelihoods are being disrupted while supporting the improvements and efficiencies that technology brings us.
Here are a few of the important stories from the last week to help you stay healthy, safe and productive!
CARES ACT UPDATES
Executive Actions for Pandemic Relief
The payroll tax deferral from President Trump’s executive memorandum is getting little traction among business leaders, who note that it could saddle employees with a hefty tax bill in 2021. Many companies are signaling that they will not participate, citing the potential unfairness to workers and the difficulty of implementing it. An employee earning $35,000 could see a bill for $751, while the highest eligible earners could owe $2,232. So far, the IRS and Treasury have not created guidance for employers or payroll companies to implement this temporary deferral.
So far, 11 states have been approved for the additional $300 per week in unemployment benefits offered in an executive action from President Trump: Arizona, Colorado, Idaho, Iowa, Louisiana, Maryland, Missouri, Montana, New Mexico, Oklahoma, and Utah. California is the latest state to be approved but there is very little information available. Some key information that has come to light is that the additional funds are only guaranteed for three weeks, and the timing for those benefits isn’t yet clear.
Economic Impact Payments (aka Stimulus Checks)
Although Congress still hasn’t passed a second stimulus program, a second round of payments is likely to be a part of it. For those anxious to receive those funds, CNet has put together a tentative schedule for when those payments might go out, depending on when Congress passes the legislation. For example, if the Senate passes a bill on September 8, payments could be headed out as soon as the week of September 21.
Paycheck Protection Program (PPP)
Do you have questions about how forgiveness will work with the PPP? JD Supra put together a useful guide with explanations of covered periods, allowable payroll expenses, and the forgiveness application process.
TAX ISSUES
The IRS created a new webpage with information about operations during the pandemic. Due to the continued shutdown of some operations, they are requesting electronic filing of returns when possible. The page also has a comprehensive list of online sources of help, which is preferable to calling as wait times tend to be significantly longer than usual. Other announcements on the webpage:
Some Taxpayer Assistance Centers are open; however, appointments are required. Call 844-545-5640 to make an appointment.
The IRS is working through its backlog of correspondence.
Included in that backlog are payments by check, which will be credited to accounts as of the date the payment was received, not the day it is processed.
If you received a notice from the IRS regarding a past-due payment, check the last page of the enclosed insert, Notice 1052, for a new due date.
The IRS has suspended mailing notices of past-due tax balances until it resolves the backlog of correspondence.
If you mailed a check to the IRS, and it still hasn’t been cashed, here’s what to do. Don’t stop payment on the check, don’t spend the money, and be patient while the IRS resolves its mass of unprocessed mail.
LIVING WITH AND AFTER THE PANDEMIC
Work in the post-pandemic world
While immediate concerns for the return to work center around keeping team members healthy and minimizing the possible spread of infection, the office as a place to work will need to evolve. The primary advantage of the office is the ability to collaborate, but with some members working remotely and social distancing requirements for those who do come in, new and better ways to collaborate will need to be developed. Remote workers need different kinds of support if they are to be equal partners with those in the office.
Working from home used to be viewed as suspect, and as inherently less productive than keeping everyone in the office. But some companies are finding that their all-remote teams have been productive enough that they are moving to a four-day workweek. Companies that were already using an abbreviated workweek are also reporting that they had an easier time transitioning to working remotely. Even after returning to the office, a four-day workweek with staggered schedules can make it easier for workplaces to comply with social distancing, and will make it easier to attract scarce highly skilled employees.
