New laws and guidance continue to rapidly surface. With that, it is important to both stay on top of the new changes, as well as remember to take time to implement changes that have already happened. If we can help you in any way with that monumental task, please let us know.
New Proposed Interim Final Rule From The SBA
The SBA is prepared to issue another Interim Final Rule on June 19, 2020, that will provide clarification to Interim Final Rules that were issued before the most recent legislative changes to the PPP law (“Paycheck Protection Program Flexibility Act”) signed into law on June 5, 2020 (click here for Information on those changes).
Outside of confirming points made in the new legislation, the SBA provided additional guidance, stating that if a PPP fund recipient does not use at least 60% of the PPP funds on payroll costs, then they can still be eligible for a sliding scale of forgiveness. It is also important to note that if you did not request PPP funds and you need them, you can still file an application through June 30, 2020 (click here for the updated PPP loan application form).
IRS Guidance 2020-32 Is Still In Effect
The IRS gave some guidance back in May 2020 that explained that, while the PPP funds would not be counted against gross income, if the PPP funds were forgiven, then they would not be eligible for other deductions.
For example, if you used $100,000 of PPP funds on payroll expenses, and your PPP loan was ultimately forgiven, you would not be able to deduct those payroll expenses that would result in a net taxable income. While there have been many dissenting voices stating that this is contrary to the PPP law, the IRS has yet to remove this guidance (click here for IRS Guidance 2020-32).
Paid Sick Leave Laws Still In Effect
While it seems like forever ago, the Coronavirus-related paid sick leave laws are still very much in effect and will be until December 31, 2020. This means that employees are still entitled to paid sick leave under certain circumstances. In addition, all employers must post the following employee rights poster in their places of work or in a place accessible to all employees (click here for the employee rights poster).
Supreme Court Ruling On LGBTQ Discrimination/Retaliation And Action Items For Employers
On June 15, 2020, the United States Supreme Court issued a decision stating that LGBTQ discrimination and retaliation is unlawful and is covered under Title VII of the Civil Rights Act of 1964. Because of this ruling, employers should look to (1) revise their employee handbooks to include this new information, (2) provide training to its supervisors and managers about the ways to prevent LGBTQ discrimination/retaliation, and (3) have any dress code, bathroom use and gender-specific policies revised to ensure compliance with this ruling.
Contact Counxel Legal Firm
If you have questions about these issues or would like assistance with updating your employee handbook and providing proper training, do not hesitate to contact us. With the expansion of employee rights, it is also a reminder to employers that, when terminating an employee for misconduct or poor work performance, it is important to document prior disciplinary issues. Otherwise, an inference of discriminatory or retaliatory motive is much easier to raise and much harder to fight.
Give us a call at 480-536-6122 or email us at intake@wordpress-457010-3165254.cloudwaysapps.com.
This article is intended for informational purposes only and does not constitute legal advice for your specific situation. Use of and access to this article does not create an attorney-client relationship between you and Counxel Legal Firm. Please contact intake@wordpress-457010-3165254.cloudwaysapps.com or 480-536-6122 to request specific information for your situation.
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