Employee Retention Tax Credit to Supplement Paycheck Protection Program
The Jumpstarting Our Businesses’ Success Credit (JOBS Credit) Act of 2020would make targeted improvements to the employee retention tax credit to better fulfill its goal of keeping workers connected to their jobs during this crisis. U.S. Representatives Stephanie Murphy (D-Fla.), John Katko (R-N.Y.), Suzan DelBene (D-Wash.), Brian Fitzpatrick (R-Pa.) and Chris Pappas (D-N.H.) introduced the legislation and are pushing for the proposal to be included in the next COVID-19 relief legislation.
The changes include:
- increasing the credit percentage from 50% to 80% of qualified wages;
- increasing the per-employee limitation from $10,000 for all calendar quarters to $15,000 per calendar quarter (and an aggregate of $45,000 for all calendar quarters);
- changing the threshold for treatment as a large employer from employers having more than 100 employees to employers having more than 1,500 employees (based on the average number of full-time employees in 2019) or having gross receipts above $41.5 million in 2019;
- making it easier for employers to qualify for the credit by phasing in the credit, so that employers who have experienced more than a 20% decline in gross receipts can claim a portion of the credit;
- clarifying that “qualified wages” include qualified health benefits and that employers who continue providing such benefits to their employees qualify for the credit even if they do not continue paying other qualifying wages;
- allowing state, territory and tribal governmental employers (and any political subdivision, agency, or instrumentality of these entities) to claim the credit if these employers retain employees notwithstanding the closure of their operations; and
- improving coordination between the tax credit and the Paycheck Protection Program so employers can be eligible for both programs, but with guardrails in place to prevent “double dipping.”
GSA and DOD Remove Wet Signatures Requirement
The U.S. Department of Defense issued a critical order on Class Deviation: Original Documents, Signatures, Seals, and Notarizations, effective April 30, providing “flexibility with regard to original documents, manual signatures, seals, and notarization in order to facilitate certain essential contracting procedures,” following a similar announcement by the General Services Administration on April 6.
The order removes the requirement for wet signatures or corporate seals on surety bonds, helping to provide a safe working environment for government professionals and allowing essential infrastructure projects to move forward. To date, Illinois, Michigan, Minnesota, Tennessee and Virginia have already taken formal actions specific to electronic execution and delivery, while at least 25 states have taken action to allow virtual remote notarizations in some form.
The Surety & Fidelity Association of America and the National Association of Surety Bond Producers issued a joint statement commending the order.
Remote Site Inspections on the Rise
The International Code Council surveyed building and fire departments to find out how code officials are coping with the professional challenges brought on by the COVID-19 pandemic and to discover trends on how U.S. jurisdictions are keeping up with inspections, new building permits and new construction. Results include:
- The majority of departments surveyed (93%) are still performing inspections, either remotely or in-person.
- More than half (65%) of respondents said that some or all employees that conduct plan review or inspections are working remotely.
- A large percentage of jurisdictions (66%) use a combination of electronic and hard copy versions of building safety codes, while a much smaller percentage of jurisdictions (7%) have advanced to using all electronic. 27% of respondents said their jurisdiction used only hard copies.
- Many jurisdictions have made the switch to electronic services, but a large percentage still do have the capacity to go virtual.
- Many healthcare facilities are putting beds in alternative locations (such as school gymnasiums, hotels or outpatient surgical centers), or in temporary structures in their parking lots. 26% of respondents have encountered requests for permits for temporary occupancy and/or temporary structures.
More than 1,000 responses came from jurisdictions of all sizes ranging from 1,000 people to more than 4.6 million. The ICC will continue to collect responses in the months ahead.
Industry Groups Urge Congress to Protect Essential Businesses
On May 3, Associated Builders and Contractors, alongside dozens of other organizations, wrote a letter to Congress, urging leaders to provide “limited and rational safe harbors for good actors.” Due to the conflicting priorities of being labeled “essential” while simultaneously adhering to pandemic protocols, many construction businesses are facing serious liabilities when it comes to implementing updated guidance from the Centers for Disease Control, Occupational Safety and Health Administration and state authorities. Staying open puts any of these businesses at risk for COVID-19-related lawsuits, fines or other legal uncertainties.
Senate Majority Leader Mitch McConnell (R-Ky.) and House Minority Leader Kevin McCarthy (R-Calif.) have signaled that they will not support an additional coronavirus relief bill unless it provides liability protections for employers.
DOL Extends Health Coverage-Related Deadlines
On April 30, the U.S. Department of Labor’s Employee Benefits Security Administration published a rule extending deadlines under Title I of the Employee Retirement Income Security Act and the Internal Revenue Code for group health plans, disability and other welfare plans, pension plans and participants and beneficiaries of these plans during the COVID-19 national emergency.
The rule, jointly issued with the U.S. Department of the Treasury’s Internal Revenue Service, extends the timeframe available to make decisions affecting benefits from March 1 until 60 days following the end of the COVID-19 national emergency.
Additionally, those participants who have been laid off will have the same 60-day extension to secure alternative health coverage (such as COBRA) for themselves and their beneficiaries. For more information on health benefits and extensions, visit dol.gov.
CISC Updates COVID-19 Response Plan
The Construction Industry Safety Coalition has released a “COVID-19 Prevention, Preparedness and Response Plan for Construction, ”updated April 22.
The plan outlines the steps that construction employers and employees can take to reduce the risk of exposure to COVID-19, such as protective measures to take on the jobsite, personal protective equipment and work practice controls to be used, cleaning and disinfecting procedures and what to do if a worker becomes sick. Recent updates to the plan include:
- new guidance on the use of face coverings, including masks and cloth coverings (bandanas, etc.);
- Guidance for Critical Infrastructure Employers, based on new CDC guidance; and
- an appendix on the procedures for monitoring the temperature of workers, including next steps if a high fever is found.
The plan is available in both English and Spanish. For more information, visit buildingsafely.org.
ASHRAE Epidemic Task Force Established
A new ASHRAE Epidemic Task Force has been established to help deploy ASHRAE’s technical resources to address the challenges of the current pandemic and future epidemics as it relates to the effects of heating, ventilation, and air-conditioning systems on disease transmission in healthcare facilities, the workplace, home, public and recreational environments.
The task force will provide recommendations for setting up temporary field hospitals in convention centers, arenas and indoor stadia to deal with surges. In addition, it will serve as a clearinghouse to review all technical questions and requests for technical guidance, and partner with more than 60 members of the ASHRAE Associate Society Alliance of organizations around the world.
