As always, our ACEC Virginia team is here to help you navigate through these unchartered waters, answer your questions and help to continue to build your business during this time. Please find some helpful information, links, and resources below to help your firm during this time. This page will regularly update with new information.
*COVID-19 Webinar Opportunities presented by ACEC Virginia
Legislation and COVID-19
Congress Clears Stopgap Funding Bill, FAST Act Extension
The House and Senate have passed a “Continuing Resolution” to fund federal government programs through December 11 and extend expiring surface transportation programs for one year. The President signed the bill into law, avoiding a lapse at the beginning of the new fiscal year.
ACEC and other stakeholder groups, including AASHTO, had advocated for the one-year extension of the FAST Act to provide certainty and funding stability for state and local transportation agencies. The bill also includes a $13.6 billion transfer to the Highway Trust Fund to keep the account solvent through Fiscal Year 2021.
Lawmakers will attempt to finalize a package of annual appropriations bills in a post-election lame duck session of Congress. Legislative efforts on a long-term reauthorization of surface transportation programs will begin again with a new Congress next year.
Return to Work Resources
Payroll Protection Program (PPP) Forgiveness Information
FAQ's from the SBA
PPP Loan Forgiveness Application
PPP Loan Forgiveness Application Instructions
We know you are busier than ever trying to run your business and manage the ever-changing environment under COVID-19 mandates. We understand you may have an overwhelming desire to "be done with" the PPP loan and apply for forgiveness, but we ask that you continue to be patient with the process. There is still guidance needed from the SBA on several underlying parts of the forgiveness calculation. Many banks are just now starting to accept PPP forgiveness applications.
Should I apply now?
There is legislation currently in Congress that may result in forgiveness of loans under $150,000 without submission of an application. It is unknown right now when or if that legislation will pass, but it likely will not happen before the end of September. We encourage businesses with loans less than $150,000 to wait another month to see if this guidance is issued. However, for those businesses who think they may be eligible to file the EZ application you may wish to apply sooner.
Guidance on Deferral of Employee Social Security Taxes Released
On August 28th, the IRS released guidance on the President's Executive Memorandum regarding the deferral of employees' social security payroll taxes. The deferral applies to employees whose pretax compensation during any biweekly pay period is less than $4,000 for the period of September 1, 2020 through December 31, 2020.
Are employers required to defer employees' taxes?
In oral comments, the Treasury Secretary stated that the deferral will be optional for employers. The guidance does not explicitly mandate that employers comply with the Executive Memoranda.
How do employers subsequently withhold and pay deferred taxes?
The guidance states that the taxes should be withheld and paid over the period of January 1, 2021 through April 30, 2021. Please note employers will need a way to track employee deferrals between time of deferment and December 31, 2020 as the deferral does not release the employer of the liability to pay the taxes.
If an employee defers their taxes and their employment is subsequently terminated, will the employer be liable for the taxes?
Employers will be liable for employees' unpaid deferred taxes and, on May 1, 2021, any unpaid taxes will begin to accrue penalties and interest. The guidance allows employers to "make arrangements to otherwise collect the total Applicable Taxes from the employee." Employers may be able to withhold the entire balance of deferred taxes from a terminated employees' final wages. Please consult your legal counsel regarding employment and wage laws.
What documentation is required by employers?
Although the guidance does not address required documentation, we recommend employers obtain written confirmation from employees opting to defer their taxes and the terms of subsequent payment. Employers should communicate to employees the requirements to repay deferred taxes to ensure employees understand that future paychecks will be reduced for deferred taxes.
Human Resources and Employee Relations
- ACEC Business Insurance Trust - Insurance Coverage Issues Related to the Coronavirus Pandemic
- The Impact of Remote Workforce on Contractual Obligations
- OSHA Reporting and Recordkeeping for COVID-19 at the Workplace
- Greyling Report - Insurance Coverage Issues Related to Coronavirus Pandemic
- Greyling Brief: Navigating State Restrictions and Limitations on Business Activity
- EPIC Brokers COVID-19 Resource Center
Federal Agency Information and Guidance
- The CARES Act
- Paycheck Protection Program (PPP)
- Small Business Owner's Guide to the CARES Act
- Economic Injury Disaster Loans
Please feel free to contact us with any questions or concerns in the meantime.
Nancy Israel, Executive Director
804.477.6573 - office
804.402.8285 - cell