As part of a series of executive actions rolled out in early August, President Trump ordered Treasury Secretary Steven Mnuchin to allow the deferral of the 6.2% payroll tax on employees from Sept. 1 through Dec. 31 for workers making less than about $104,000 on an annualized basis. The plan was brought forth by the White House after it became clear that Congress did not plan to play ball with the President and pass an actual payroll tax cut.
After a hard look at the plan, it is obvious that small business owners should not be tempted by President Trump’s offer to defer paying some employee payroll taxes until next year. Established through a non-binding Presidential Memorandum, this offer does *not* constitute a tax cut.
How can your business – and you – survive the COVID-19 pandemic?
It’s a tall order. But small business owners have means of surviving. The corollary shutdowns have impacted 20% of small businesses, according to the U.S. Chamber of Commerce, and restrictions have affected a far greater number. A study by the University of Illinois, University of Chicago and Harvard University and its business school estimates more than 100,000 small businesses are permanently shuttered. Not a surprise since many small firms don’t generally have more than a few months’ cash reserve.
The moratorium is scheduled to end on July 31, 2020, it may very well be extended again. Once the moratorium period ends, Illinois landlords can file eviction suits due to the non-payment of rent.
NOTICE TO LANDLORDS: Chicago residential tenants, who have lost income as a result of the COVID-19 pandemic, can respond to their landlords within five days of receiving an eviction notice under a Chicago Ordinance. The notice must be in writing, whether in the form of a letter, email or text message. The notice can be as simple as, “I have been unable to pay rent because I have been financially affected by the COVID-19 pandemic.” For a more formal template, go to: www.chicago.gov/eviction
On June 24, Virginia became the first state in the country to implement workplace health and safety rules to protect workers from coronavirus infections. Could Illinois be next? Whatever happens, these actions should serve as an example of what every business should do.
Virginia’s health and safety board agreed to create finalized rules after the state’s Department of Labor and Industry drafted an emergency temporary standard in late May. The office of Governor Ralph Northam said the idea arose because the federal Occupational Safety and Health Administration (OSHA) has received more than 4,000 complaints related to coronavirus but only issued one citation, according to the Washington Post.
As of today June 26, Illinois has reached Stage 4 of coronavirus reopening, which allows essentially all types of businesses to reopen provided they observe public health safety guidance and capacity limits, with no more than 50 people allowed in one place.
What does this mean for businesses, and how can they protect themselves—and their employees and customers—medically, financially and legally?
Small and medium-sized businesses with up to 500 employees are required to provide employees with up to 14 weeks of leave, most of which must be paid, for circumstances related to COVID-19, under a pair of temporary pieces of legislation that passed Congress last month.
Starting April 2 and through December 31, 2020, the Emergency Family and Medical Leave Expansion Act requires that employers provide up to 12 weeks of family and medical leave—which has been required to be offered, but not required to be paid, since the 1993 passage of the original legislation. And also from April 2 through the end of the year, the Emergency Paid Sick Leave Act requires two weeks of paid sick leave.