30 April 2020 EY publication explains federal and state payroll and employment tax implications of COVID-19 To contain the outbreak of COVID-19 in the US, numerous states and local governments have temporarily closed nonessential businesses and issued "stay-at-home" orders, creating an historic disruption to the US workforce. Unlike most major disasters that affect only a segment of the US population, the adverse effects of COVID-19 extend nationwide (and globally). In response to COVID-19's impact on US businesses and its employees, federal legislation has been enacted to extend paid leave to certain employees, expand unemployment insurance (UI) benefits and provide cash flow to employers through tax credits, tax payment deferrals and forgivable loans. Some states and localities have also responded by expanding their paid leave mandates, waiving certain reporting requirements and providing extensions on the due date of payroll tax returns, tax payments or both. COVID-19 has also dramatically increased the number of employees working from home, an arrangement that is new for many employers. Telecommuting raises numerous questions, from the tax treatment of equipment and supplies to the payroll tax rules that apply. In our special report, COVID-19: employer requirements and considerations, we explain these federal, state and local implications of COVID-19. Download the report here.
Document ID: 2020-1157 | |||||||||||
