Article Highlights: COVID-19 Epidemic Employer Reimbursement Paid Sick Leave Family Care Leave Procedures for Reimbursing Employers The COVID-19 epidemic has created situations where employees are not able to work because they tested positive for the virus or have been quarantined after coming in contact with someone who has tested positive. It has also caused parents to miss work because their children’s school has closed due to the outbreak and there is no one to watch the kids. As a result, the federal government is providing sick leave benefits and child care leave benefits to affected taxpayers whose employers have fewer than 500 employees. The way this is being handled is the employer will pay the benefits to the employee and then will be reimbursed by the government (more on this later in this article). Sick Leave - To qualify for paid sick leave, an employee (regardless of how long employed by the employer) who is unable to work in person or to telecommute for any of the following reasons qualifies for paid sick leave: Is subject to a COVID-19 federal, state, or local isolation or quarantine order. A health care provider advises them that they should self-quarantine as a result of concerns related to COVID-19 (self-quarantining without advice does not qualify). Is seeking medical diagnosis as a result of having symptoms of COVID-19. Is caring for somebody (not necessarily a family member) who is subject to a federal, state, or local isolation or quarantine due to COVID-19; or who has been advised to self-quarantine by a health care provider as a result of COVID-19. A child’s school or care facility has been closed or is unavailable as a result of COVID-19 and the employee needs to care for the child. The exact definition of what paid sick time comprises is based upon the number of hours that an employee works. For full-time employees, paid sick leave is 80 hours. Those who work part-time will be entitled to the same number of hours of paid sick leave that they would normally work during a two-week period. A special calculation method is used for those who work a significantly different number of hours each week. Referring to the numbered qualified reasons listed above, the leave pay that is based on reasons 1, 2 and 3 will be paid at the same rate the employee is normally paid, up to a maximum of $511 per day and a total of $5,110. Those who need paid sick leave based on the reasons numbered 4 and 5 will be paid their sick leave hours at a rate equal to two-thirds of their normal pay, with a maximum of $200 per day and a total of $2,000. These sick pay benefits are only available through the end of 2020.

Article Highlights: COVID-19 Tax Benefits Retirement Plan Withdrawals Waiver of 10% Early Withdrawal Penalty Retirement Plan Loans Roth IRAs Other Sources of Income Way to Reduce Payments If you are struggling financially due to the COVID-19 epidemic, you will be happy to know Congress, as part of the CARES Act enacted on March 27, has made it easier for you to access your retirement funds during this emergency. Normally, withdrawals from traditional IRAs and qualified plans such as 401(k)s, self-employed pension plans (SEPs), tax sheltered annuities (TSAs), etc., are taxable when withdrawn and subject to a 10% early withdrawal penalty if withdrawn before you turn age 59½. For the rest of 2020, you will be able to tap those accounts for up to $100,000 and avoid the 10% penalty, although the distributions will still be taxable. To qualify, you, your spouse or a dependent must have been diagnosed with either SARS-CoV-2 or the COVID-19 virus or have been quarantined, lost your job, had your hours reduced or are unable to work due to lack of child care. To ease the taxes on these distributions, you can choose to have distributions taxed 1/3 in 2020, 2021 and 2022. Or, if your income is very low in 2020, it might be better to tax a distribution entirely in 2020. That is a decision that can be made when you file your 2020 tax return. You also have the option of paying the distribution back over a three-year period. Another available option is taking a loan of up to $100,000 from a qualified plan (does not apply to IRAs). Congress has increased the maximum amount that can be borrowed from $50,000 to $100,000 through December 31, 2020. Taking a loan avoids both the 10% early distribution penalty and the income tax on the distribution. However, it will have to be paid back over five years. If you have a Roth IRA, you may be able to tap it without any tax or penalty liability at all, since the contributions were made with after-tax money. Therefore, there are no taxes or penalties when distributed. Contributions are distributed first to the extent of your original contributions, and that portion of the distribution is tax-free and penalty-free. However, there is a caveat: if you have previously converted a traditional IRA into a Roth IRA, the converted funds must remain in the IRA for five years after the conversion in order to avoid the 10% early withdrawal penalty. The first and last year of the five-year period do not need to be full years. Luckily, the converted funds are distributed after the regular contributions. Of course, if you work your way down to the earnings, that portion of the distribution is taxable and subject to the 10% early withdrawal penalty if you are under the age of 59½.

Article Highlights: SBA Loans Economic Injury Disaster Loans Paycheck Protection Loans Loan Forgiveness Among the hardest hit during the coronavirus epidemic are the small businesses that have lost their revenue sources and do not have the financial resources to weather the storm. In this case, the federal government’s SBA (Small Business Administration) Economic Injury Disaster Loan (EIDL) can help a business make it through these trying times. Normally, these loans are available to small businesses located in a presidentially designated disaster zone; for example, after a hurricane, wildfire or tornado hits a specific area. However, in the case of the coronavirus emergency, all 50 states, Puerto Rico, Guam, and the Northern Mariana Islands have been declared disaster zones for purposes of qualifying for EIDLs. Economic Injury Disaster Loans have the following characteristics: Maximum Amount: $2 million Interest Rate: 3.75% (2.75% for nonprofits) Maximum Term: 30 years Active Business: Must have been in business on January 31, 2020 Collateral Requirements: EIDL loans in excess of $25,000 require collateral. Collateral generally includes real estate when available. The SBA will not necessarily decline a loan for lack of collateral but requires borrowers to pledge what is available. It will be up to the underwriters to make collateral decisions. Advance Disbursements: Where the need is urgent, a borrower may request an advance disbursement of up to $10,000 to be used for authorized expenses. If the loan is not approved, the advanced payment is not repayable. Applications can be submitted online at SBA.gov or at a local office. For help with applying for an Economic Injury Disaster Loan, call 800-659-2955 or email disastercustomerservice@sba.gov. You can also use a text telephone (TTY) by calling 1-800-877-8339. Paycheck Protection Loans: The CARES Act authorized a Paycheck Protection Loan Program. These loans can be forgiven if certain conditions are met. To qualify for this program, the business must not have more than 500 employees or the maximum specified by the SBA. There is an exception for accommodation, food services and drinking places with multiple locations where each location cannot have more than 500 employees. Special rules apply to franchisees. The following are the characteristics of Paycheck Protection Loans:

Even if you always hire a tax preparer to do your taxes for you, you probably know that the most effective way of reducing your tax liability is through deductions and tax credits. Since one of the biggest deductions available is the one taken for home office space, in this strange and disorienting period of isolation due to the COVID-19 pandemic, many workers who’ve been told to work from home are wondering whether they’ll be eligible for that additional tax benefit. Unfortunately, the short answer to that question is probably “no.” Here’s why: Millions of Americans have been asked to work from home as a result of Coronavirus and the need for social distancing. Though you may have rearranged your home in order to provide yourself with a dedicated space and workable environment, it’s unlikely that you’ll be able to write off the cost on your 2020 taxes, and that’s because there are specific criteria for qualifying for that credit, and being home from your job temporarily doesn’t rise to those requirements. If you want to check yourself against the IRS rules, read the rules below for claiming the home office deduction: You must have an area of your home that is set aside for work, and only for work. People who qualify will have an office, pantry, small closet, sunroom, garage or other space that is used exclusively as workspace. Sitting at your kitchen island or setting up a desk in your bedroom does not qualify. The area cannot be used for any other purpose. You must be self-employed. Though there was a time when employees who worked at home were able to take the credit, that went away with passage of the Tax Cuts and Jobs Act. When that law was enacted, it eliminated employees’ ability to take deductions for miscellaneous itemized deductions – which is exactly the way that people who aren’t self-employed were able to deduct the costs of working from home. With the elimination of that ability, it makes no difference whether an employee is home temporarily because of the virus or has always worked from home, the deduction is not available. If, based upon the criteria above, you do qualify for the home office deduction, there are a couple of ways to go about it. One is to use the

In these times of uncertainty, governments all over the world are taking unprecedented action to support people who have been adversely affected by the COVID-19 pandemic. On March 12th, the U.S. Department of Labor released updated eligibility criteria for unemployment insurance (UI) programs to include people that have become unemployed as a direct result of the coronavirus outbreak. Eligibility for the program has now been extended to include: People who are unable to work because their employer has temporarily halted operations due to the outbreak People who have had to quit their jobs in order to care for vulnerable family members who are susceptible to the virus People who have had to quit their jobs because they are at risk of being exposed to the virus and infecting vulnerable family members People who have had to go into quarantine, but are fully expecting to return to work after the quarantine period is over. Who else is included? A later revision of the policy on March 30th extended the policy to include - Self-Employed people Independent Contractors Gig Workers People with a limited work history How long will these benefits be extended for? Unemployed workers will receive an additional $600 per week in benefits for up to six months. This is an increase on what would normally have been received – the average at present is around $300 a week. Unemployment insurance is usually given for around 4 months (although this does vary between states). As a result of the new government guidelines, people who are eligible will get an additional 13 weeks added to the time provided by their specific state. Although this change is being funded on a federal level, it will be administered via your specific state. Please scroll down to find your state for all the latest links to find out more information about how to apply and track any existing claims. Alabama General Information about the Unemployment Insurance Program: http://www.labor.alabama.gov/uc/ To file a UI claim online: https://labor.alabama.gov/uc/ICCS/ To file a claim by telephone number: https://labor.alabama.gov/uc/phone.aspx To check the status or get information on your claim: https://labor.alabama.gov/uc/ICCS/PG000_Revised_LoginUser.aspx Alaska General Information about the Unemployment Insurance Program: https://labor.alaska.gov/unemployment/ To file a UI claim online: https://my.alaska.gov/ To file a claim by telephone number: https://labor.alaska.gov/unemployment/call-centers.htm Coronavirus update: Alaska is providing updates on Unemployment Insurance changes related to COVID-19 here: https://labor.alaska.gov/unemployment/COVID-19.htm Arizona General Information about the Unemployment Insurance Program: https://des.az.gov/services/employment/unemployment-individual To file a UI claim online: https://des.az.gov/services/employment/unemployment-individual/apply-ui-benefits To file a claim by telephone number: https://des.az.gov/services/employment/unemployment-individual/contact-AZUI Coronavirus update: Arizona is providing updates on Unemployment Insurance changes related to COVID-19 here: https://des.az.gov/services/coronavirus Arkansas General Information about the Unemployment Insurance Program: https://www.dws.arkansas.gov/unemployment/ To file a UI claim online: https://www.ezarc.adws.arkansas.gov/ To file a claim by telephone number: https://www.dws.arkansas.gov/unemployment/ark-line/ Initial claims can be filed in person. For the nearest office click on this link: https://www.arjoblink.arkansas.gov/ada/r/contact California General Information about the Unemployment Insurance Program: https://edd.ca.gov/Unemployment/ To file a UI claim online: https://edd.ca.gov/Unemployment/Filing_a_Claim.htm To file a claim by telephone number: https://www.edd.ca.gov/Unemployment/Telephone_Numbers.htm Coronavirus update: California is providing updates on Unemployment Insurance changes related to COVID-19 here: https://www.edd.ca.gov/about_edd/coronavirus-2019.htm Colorado General Information about the Unemployment Insurance Program: https://www.colorado.gov/cdle/unemployment To file a UI claim online: https://www.colorado.gov/cdle/unemployment To file a claim by telephone number: https://www.colorado.gov/pacific/cdle/ui-contact-us Coronavirus update: Colorado is providing updates on Unemployment Insurance changes related to COVID-19 here: https://www.colorado.gov/pacific/cdle/news/state-labor-department-releases-emergency-rules-paid-sick-leave-covid-19 Connecticut General Information about the Unemployment Insurance Program: http://www.ctdol.state.ct.us/UI-OnLine/index.htm To file a UI claim online: http://www.ctdol.state.ct.us/progsupt/unemplt/M1A/LogInIntro.htm Coronavirus update: Connecticut is providing updates on Unemployment Insurance changes related to COVID-19 here: http://www.ctdol.state.ct.us/UI-online/unemployedduetocoronavirus.pdf Delaware General Information about the Unemployment Insurance Program: http://ui.delawareworks.com/ To file a UI claim online: https://uics.delawareworks.com/Forms/Form_WL1 Coronavirus update: Delaware is providing updates on Unemployment Insurance changes related to COVID-19 here: https://laborfiles.delaware.gov/c19/UI-FAQ.pdf District of Columbia General Information about the Unemployment Insurance Program: http://does.dc.gov/service/unemployment-compensation-process To file a UI claim online: https://does.dcnetworks.org/InitialClaims/ To file a claim by telephone number: 202-724-7000 Coronavirus update: District of Columbia is providing updates on Unemployment Insurance changes related to COVID-19 here:“nbsp” https://does.dc.gov/release/bowser-administration-announces-ui-benefit-flexibilities-passage-covid-19-response-emergency Florida General Information about the Unemployment Insurance Program: http://www.floridajobs.org/job-seekers-community-services To file a UI claim online: https://connect.myflorida.com/Claimant/Core/Login.ASPX To file a claim by telephone number: 1-800-204-2418 Coronavirus update: Florida is providing updates on Unemployment Insurance changes related to COVID-19 here: http://www.floridajobs.org/docs/default-source/ra-dua-documentation/dua-faqs-3-17-20-updates.pdf Georgia General Information about the Unemployment Insurance Program: https://dol.georgia.gov/unemployment-benefits To file a UI claim online: https://www.dol.state.ga.us/WS4-MW5/cics.jsp?TRANSID=UCI1&FRMNAME=UCI1S To file a claim by telephone number: 404-232-3180 Coronavirus update: Georgia is providing updates on Unemployment Insurance changes related to COVID-19 here: https://dol.georgia.gov/gdol-covid-19-information Hawaii General Information about the Unemployment Insurance Program: http://labor.hawaii.gov/ui/ To file a UI claim online: https://huiclaims.hawaii.gov/#/ Coronavirus update: Hawaii is providing updates on Unemployment Insurance changes related to COVID-19 here: https://labor.hawaii.gov/ui/files/2020/03/COVID-19-Labor-Benefits-Fact-Sheet_20200319.pdf Idaho General Information about the Unemployment Insurance Program: https://labor.idaho.gov/dnn/Unemployment-Benefits To file a UI claim online: https://www2.labor.idaho.gov/ClaimantPortal/Login?ReturnUrl=/claimantportal To file a claim by telephone number: https://www.labor.idaho.gov/dnn/Contact Coronavirus update: Idaho is providing updates on Unemployment Insurance changes related to COVID-19 here: https://idahoatwork.com/2020/03/18/faqs-about-unemployment-insurance-and-covid-19/ Illinois General Information about the Unemployment Insurance Program: https://www2.illinois.gov/ides/individuals/UnemploymentInsurance/Pages/default.aspx To file a UI claim online: https://www2.illinois.gov/ides/aboutides/Pages/10%20Things%20You%20Should%20Know.aspx To file a claim by telephone number: http://www.ides.illinois.gov/SitePages/ContactIDES.aspx You may file in person. Click on this link for the nearest office: http://www.ides.state.il.us/ietc/network/index.asp Coronavirus update: Illinois is providing updates on Unemployment Insurance changes related to COVID-19 here: https://www2.illinois.gov/ides/Pages/COVID-19-and-Unemployment-Benefits.aspx Indiana General Information about the Unemployment Insurance Program: https://www.in.gov/dwd/3474.htm To file a UI claim online: https://www.in.gov/dwd/2362.htm Coronavirus update: Indiana is providing updates on Unemployment Insurance changes related to COVID-19 here: https://www.in.gov/dwd/19.htm Iowa General Information about the Unemployment Insurance Program: https://www.iowaworkforcedevelopment.gov/file-claim-unemployment-insurance-benefits To file a UI claim online: https://uiclaims.iwd.iowa.gov/UIInitialClaim/ Coronavirus update: Iowa is providing updates on Unemployment Insurance changes related to COVID-19 here: https://www.iowaworkforcedevelopment.gov/updates-and-resources-about-covid-19 Kansas General Information about the Unemployment Insurance Program: https://www.getkansasbenefits.gov/Home.aspx To file a UI claim online: https://www.getkansasbenefits.gov/Home.aspx To file a claim by telephone number: https://www.getkansasbenefits.gov/Home.aspx To check the status or get information on your claim: http://www.getkansasbenefits.gov/ Coronavirus update: Kansas is providing updates on Unemployment Insurance changes related to COVID-19 here: https://www.dol.ks.gov/covid19response Kentucky General Information about the Unemployment Insurance Program: https://kcc.ky.gov/career/If-you-are-Unemployed/Pages/default.aspx To file a UI claim online: http://www.kewes.ky.gov/ To file a claim by telephone number: http://www.kewes.ky.gov/ Louisiana General Information about the Unemployment Insurance Program: https://www.louisianaworks.net/hire/vosnet/Default.aspx To file a UI claim online: https://www.louisianaworks.net/hire/vosnet/Default.aspx To file a claim by telephone number: Call 1-866-783-5567 Coronavirus update: Louisiana is providing updates on Unemployment Insurance changes related to COVID-19 here: http://www.laworks.net/PublicRelations/COVID_19_Information.asp Maine General Information about the Unemployment Insurance Program: https://www.maine.gov/unemployment/claimants/ To file a UI claim online: https://reemployme.maine.gov/accessme/faces/login/login_local.xhtml To file a claim by telephone number: https://www.maine.gov/labor/unemployment/howtofile.html#phone Coronavirus update: Maine is providing updates on Unemployment Insurance changes related to COVID-19 here: https://www.maine.gov/labor/covid19/ Maryland General Information about the Unemployment Insurance Program: http://www.dllr.state.md.us/employment/unemployment.shtml To file a UI claim online: http://www.dllr.state.md.us/employment/unemployment.shtml To file a claim by telephone number: http://www.dllr.state.md.us/employment/officenum.shtml Massachusetts General Information about the Unemployment Insurance Program: https://www.mass.gov/orgs/department-of-unemployment-assistance To file a UI claim online: https://www.mass.gov/unemployment-insurance-ui-online To file a claim by telephone number: https://www.mass.gov/orgs/department-of-unemployment-assistance Coronavirus update: Massachusetts is providing updates on Unemployment Insurance changes related to COVID-19 here: https://www.mass.gov/resource/information-on-unemployment-and-coronavirus-covid-19 Michigan General Information about the Unemployment Insurance Program: https://www.michigan.gov/uia To file a UI claim online: https://www.michigan.gov/uia/0,1607,7-118-52610_52650-207424--,00.html To file a claim by telephone number: https://www.michigan.gov/uia/0,4680,7-118-52610-207602--,00.html Coronavirus update: Michigan is providing updates on Unemployment Insurance changes related to COVID-19 here: https://www.michigan.gov/coronavirus Minnesota General Information about the Unemployment Insurance Program: http://www.uimn.org/uimn/ To file a UI claim online: http://www.uimn.org/uimn/applicants/index.jsp To file a claim by telephone number: https://www.uimn.org/applicants/howapply/index.jsp Coronavirus update: Minnesota is providing updates on Unemployment Insurance changes related to COVID-19 here: https://www.uimn.org/applicants/needtoknow/news-updates/covid-19.jsp Mississippi General Information about the Unemployment Insurance Program: https://www.mdes.ms.gov/unemployment-claims/claims-information/ To file a UI claim online: https://www.mdes.ms.gov/unemployment-claims/claims-information/ To file a claim by telephone number: 1-888-844-3577 Missouri General Information about the Unemployment Insurance Program: https://labor.mo.gov/unemployed-workers To file a UI claim online: https://uinteract.labor.mo.gov/benefits/home.do To file a claim by telephone number: https://labor.mo.gov/contact-labor

Article Highlights: Unemployment Compensation Expansion Qualifications Limitations Benefits Duration of Benefits The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27th by President Trump, includes an unemployment assistance program for individuals who under normal circumstances would not qualify for unemployment benefits, which traditionally have only applied to employees. Under the CARES Act, unemployment benefits are now available for self-employed individuals, independent contractors and others – even some with limited work history – who are unable to work because of the coronavirus emergency. Qualifications: To qualify for these expanded unemployment benefits, an individual will have to self-certify that they were available to work but unable to for any of the following reasons: Has been diagnosed with COVID-19 or are experiencing symptoms of COVID-19 and is seeking medical diagnosis; A member of the individual’s household has been diagnosed with COVID-19; The individual is providing care for a family member or member of their household who has been diagnosed with COVID-19; The individual is the primary caregiver for a child or other person in the household who is unable to attend school or another facility as a direct result of COVID-19; The individual is unable to work because of a COVID-19 imposed quarantine. The individual is unable to work as the result of being advised to self-quarantine by a health care provider; The individual was scheduled to start a job, but was unable to do so as a result of the COVID-19 health emergency; The individual has become a major supporter of a household as the result of the death of the head of household who has died as a direct result of COVID-19; The individual quit their job as a direct result of COVID-19; or The individual’s place of employment is closed as a direct result of COVID-19.