Family First CoronaVirus Response Act

March 19, 2020

Update from Corporate Solutions

This e-mail will provide some short answers, as we are still working out the details from the federal and state agencies.  As we are sure you are aware, when getting information from government agencies, it is not always clear and takes some time to get it accurate.  Please bear with us. We are working on a much more detailed information sheet as we obtain the information from the government agencies, hopefully tomorrow.

  1. If you are laying off employees, straight layoff, reduced hours, please identify by Layoff due to COVID-19, please use that description so that we can identify that layoff.  We are working to see if Texas will issue (as some other states have) a number for the employees to use when filing for unemployment benefits in order to identify and expedite the process.  Will forward that information ASAP.
  2. Clarification on the paid ‘Enhanced FMLA’ and ‘PSL’ for people affected by COVID-19 is still being sorted out by the federal government. We attended a webinar this afternoon with industry lobbyist, employers, tax attorneys, 401k providers, health insurance providers and business consultants all who are working diligently with government agency with respect to the roll out of the ACT.
  3. We are going to create special codes for the ‘Enhanced FLMA” and ‘PSL’, both Hourly & Salary, in order to identify those wages.
  4. Credit to employer portion of Social Security/Medicare is ONLY for paid FMLA and PSL not reduce hours or layoffs.
  5. Credits, currently, do not apply to Federal Unemployment TAX (FUTA)
  6. The federal government has NOT clarified as to how the ‘tax credit’ is to go back to employers (which is CSI and you the Client).  As soon as that decision is released, we will institute that process.  The government is still trying to create requirements and guidelines as how that is all to be reported.  As of right now they DO NOT expect that any tax credits will be allowed for the 1st Quarter of 2020.  That could change and we will inform clients as we are informed.
  7. Please be advised that the COVID-19 Act has been passed and signed but NOT yet enacted, government have a certain amount of time to enact.  The experts believe there will be another wave of relief for employers, and we will notify clients as soon as we are made aware.
  8. There has been no information relating to 401k or IRA employer match contributions.
We appreciate your patience and cooperation through these unprecedented times.  We at Corporate Solutions are committed to assisting our clients as much and as quickly as possible.  Please remember we are dealing with the federal bureaucracy and it is not the fastest or the most defining agency to distribute information.

If you are going to do temporary lay-offs or need to utilize the Enhanced FMLA or PSL, please do not hesitate to contact us and we will work with you through that process with what we know.

Please do not hesitate to contact us with any questions or concerns, please be advised that we will notify all our clients as we obtain more information not only day by day, but hour by hour and as quickly as possible.  We are here for you, committed to see your success and we will get through this together.

Corporate Solutions Management