Compliance

COVID-19

There is arguably no more crucial function within an organization than getting employees paid accurately and on time. As employers respond to the spread of the novel coronavirus disease 2019 (COVID-19), payroll professionals must be prepared for questions from company executives, managers, and employees. The actions companies are taking in response to COVID-19, whether to reduce working hours, allow more employees to work from home (telecommuting), or shut down indefinitely, are raising difficult compliance questions for payroll.

Federal and state government agencies are working to provide guidance for employers and employees related to COVID-19. In addition, federal and state legislative bodies are considering legislation to address COVID-19-related issues, such as paid sick leave.

Sign up today to receive Pay News Now, an electronic news digest delivered straight to your inbox.

Links:

Resources

  • Payroll Currently, Issue 12, Vol. 29, December 3, 2021
    • President Signs Infrastructure Bill That Ends ERC Early
    • Reminder: Payment of Deferred Social Security Tax From 2020 Is Due Soon
    • OSHA Issues Vaccine Mandate; Court Halts Standards for Further Review
    • IRS Updates 2021 Form W-2 Information to Reflect DCAP
    • IRS to Turn Off Form 7200 Fax Line After January 31
    • IRS Gives Guidance on Temporary Increase for Food, Beverage Deduction
  • PayState Update, Issue 22, Vol. 23, November 15, 2021
    • Relaxed Nexus Requirements in Wisconsin and South Carolina to Expire at End of 2021
  • Payroll Currently, Issue 11, Vol. 29, November 5, 2021
    • IRS Provides Help on First Payment of Deferred Employment Tax
    • IRS Explains Penalties for Late Payment of Deferred Employment Taxes
    • USCIS Updates E-Verify for TNCs, Open Cases
    • IRS Corrects Form 941 Instructions for Sick and Family Leave Wages
  • Payroll Currently, Issue 8, Vol. 29, August 6, 2021
    • IRS Releases Draft of Form 941-X
    • IRS Extends Leave-Based Donations for COVID-19 Victims
    • IRS Lists Errors to Avoid When Filling Out Form 7200
    • IRS Updates FAQs for Paid Sick and Family Leave Credits for Vaccinations
    • IRS Provides More Guidance on COBRA Premium Assistance Tax Credit
    • IRS Provides Guidance for Employers and Third-Party Payers on Payments of Social Security Tax Deferred in 2020
    • IRS Updates Status of Processing Forms 941
  • PayState Update, Issue 14, Vol. 23, July 19, 2021
    • State Disability Insurance and Paid Family Leave Program Eligibility Guidance
    • States Adjust COVID-19 Nexus Guidance as Pandemic Restrictions Are Lifted
  • Payroll Currently, Issue 7, Vol. 29, July 2, 2021
    • IRS Releases Form 941 and Instructions for Form 941, Schedules B and R
    • IRS Creates FAQs for Paid Sick and Family Leave Credits for 2nd, 3rd Quarters
  • PayState Update, Issue 13, Vol. 23, June 28, 2021
    • Changes to COVID-19 Nexus Guidance as States Lift Pandemic Restrictions
    • Paid Leave for COVID-19 Vaccination and Recovery in Nevada and New York
  • PayState Update, Issue 12, Vol. 23, June 14, 2021
    • Biden Administration Recommends U.S. Supreme Court Not Hear Nonresident State Taxation Case
    • Massachusetts Requires COVID-19-Related Paid Sick Leave and Establishes a Fund to Reimburse Employers
  • Payroll Currently, Issue 6, Vol. 29, June 4, 2021
    • IRS Updates Form 7200, Instructions to Reflect Law Changes
    • IRS Provides Guidance on COBRA Premium Assistance Tax Credit
    • IRS Release Drafts of Form 941, Instructions, and Schedule R
    • IRS Issues Guidance on Dependent Care Assistance Programs
    • DHS Extends Temporary Requirements for Form I-9 Compliance Again
  • Payroll Currently, Issue 5, Vol. 29, May 7, 2021
    • IRS Issues Guidance on Claiming ERC for First Two Quarters of 2021
    • IRS Provides Guidance, Fact Sheet for Paid Leave for COVID-19 Vaccines
    • IRS Issues Draft Form 7200 for Second Quarter of 2021
    • IRS Releases 941-X Instructions; New Form To Be Issued in July
    • IRS Extends Penalty Relief for Failure to Deposit Employment Taxes
    • DOL Creates Initiative to Inform Employees About COVID-19 Requirements
  • PayState Update, Issue 9, Vol. 23, May 3, 2021
    • Paid Leave for COVID-19 Vaccination and Recovery – What Employers Need to Know
    • State COVID-19-Related Garnishment Updates and Reminders
  • PayState Update, Issue 7, Vol. 23, April 5, 2021
    • New California COVID-19-Related Supplemental Paid Sick Leave Requirements
    • Additional California Localities Require Hero/Hazard Premium Pay
  • Payroll Currently, Issue 11, Vol. 28, November 6, 2020
    • IRS Updates FAQs on Claiming Advance COVID-19 Credits
    • IRS TAS Creates COVID-19 Business Tax Relief Tool
    • USCIS to Resume Sending Notices for TNC Noncompliance on November 5
    • IRS Clarifies Form W-2 Reporting of Employee Social Security Tax Deferrals
  • Payroll Currently, Issue 10, Vol. 28, October 2, 2020
    • DOL Revises FFCRA Rules to Clarify Paid Leave Requirements
    • IRS Answers Questions on Deferral of Employment Tax Deposits, Payments
    • DOL Updates FAQs on COVID-19-Related FLSA Incentive Payments
  • PayState Update, Issue 19, Vol. 22, September 28, 2020
    • State and Local Emergency Supplemental Paid Leave Updates
    • States Update Nexus Guidance Due to COVID-19
    • Federal Deferral Does Not Apply to State Withholding Tax
  • PayState Update, Issue 18, Vol. 22, September 14, 2020
    • COVID-19-Related Wage Garnishment Updates
    • Missouri Awarded First State Grant for Short-Time Compensation Program
    • APA Joins COST, AICPA in Support of Mobile Worker Relief Legislation
  • Payroll Currently, Issue 9, Vol. 28, September 4, 2020
    • IRS Issues Guidance on Deferring Payroll Taxes
    • IRS Provides Guidance on Filing Form 941-X for Second Quarter of 2020
    • IRS Says Employers Do Not Need to Take Action for Failure to Deposit Penalty Notices for COVID-19 Credits
    • Department of Education Extends Federal Student Loan Relief
    • IRS Releases Draft Instructions for Form 941-X
    • Requests for Extensions of Time to Furnish Statements Must Be Faxed
    • Deposits for Leave-Sharing Plans Are Not Included in Income, Wages
    • DOL Updates FAQs on School Reopening, FFCRA Provisions
    • DHS Extends Temporary Requirements for Form I-9 Compliance Again
    • DOL Issues Field Assistance Bulletin on Telework
  • PayState Update, Issue 17, Vol. 22, August 31, 2020
    • New COVID-19-Related Paid Leave Requirements For Certain Nevada Hospitality Employers
  • PayState Update, Issue 16, Vol. 22, August 17, 2020
    • New Federal COVID-19 Relief Proposal Includes Uniform State Withholding Threshold
    • Four California Localities Enact Emergency Supplemental Paid Sick Leave Ordinances
  • Payroll Currently, Issue 8, Vol. 28, August 7, 2020
    • IRS Sends Letters to Employers for Form 7200 Processing Delays
    • IRS Instructs Filers Not to Report COVID-19 Credits on Form 8994
    • IRS Issues Temporary, Proposed Regulations for Reconciling Refunds of Erroneously Claimed COVID-19-Related Tax Credits
    • Court Rules DOL Exceeded Authority in Administering FFCRA Leave
    • DHS Extends Temporary Requirements for Form I-9 Compliance Again
    • DOL Publishes Guidance on FFCRA Leave
    • APA Answers Questions About COVID-19-Related Compliance
    • Payroll Solutions (taxation of student loan payments made by an employer on behalf of an employee)
  • PayState Update, Issue 14, Vol. 22, July 13, 2020
    • Reopening Reminders for Employers Rehiring Employees
    • State IRC Conformity and the CARES Act
  • Payroll Currently, Issue 7, Vol. 28, July 10, 2020
    • IRS Revises Form 941, Instructions for COVID-19-Related Tax Relief
    • IRS Releases Guidance on Form W-2 Reporting of FFCRA Qualified Leave
    • IRS Re-Opens Operations to Process Reporting Agent Authorizations
    • New PPP Flexibility Act Allows Recipients to Defer Employment Taxes
    • IRS Allows Leave-Based Donations for COVID-19 Victims
    • IRS Allows COVID-19-Related Loans, Distributions From Retirement Plans
    • IRS Updates FAQs on Employee Retention Credit
    • CBO Letter Outlines Effects of Tax Deferrals, Other COVID-19 Responses
    • DHS Extends Temporary Requirements for Form I-9 Compliance Again
    • DOL Issues Guidance on Child Labor, FFCRA Leave for Summer
  • PayState Update, Issue 13, Vol. 22, June 29, 2020
    • New Federal COVID-19-Related Mobile Workforce Proposal
  • PayState Update, Issue 12, Vol. 22, June 15, 2020
    • Paid Sick Leave Requirements Related to Rehired Employees
  • Payroll Currently, Issue 6, Vol. 28, June 5, 2020
    • IRS Releases Draft Form 941 Schedule R, Schedule B, Instructions
    • IRS Updates FAQs on Health Plan Expenses for Employee Retention Credit
    • IRS Allows Flexibility With Cafeteria Plans and Mid-Year Changes
    • SBA Releases PPP Loan Forgiveness Application, Interim Rule
    • Reporting Agents Can Sign, Submit Form 7200 on Behalf of Clients
    • Temporary Requirements for Form I-9 Compliance Extended by 30 Days
    • DOL Updates FAQs on FFCRA Leave
    • DOL Begins to Enforce COVID-19-Related Leave Violations
    • IRS Extends Deadlines for Correcting Employment Taxes; Grants CPEOs Filing Waiver From Using Magnetic Media
  • PayState Update, Issue 11, Vol. 22, June 1, 2020
    • Several States Receive Approval for Advances on Federal Unemployment Account Loans; New York Begins Borrowing
    • States Differ on Charging Employers for COVID-19-Related Benefit Claims
  • PayState Update, Issue 10, Vol. 22, May 18, 2020
    • State Attorneys General Negotiate COVID-19-Related Relief for Many Private Student Loans
  • Payroll Currently, Issue 5, Vol. 28, May 8, 2020
    • IRS Updating Form 941 to Accommodate New Employment Tax Credits
    • IRS Lists Common Mistakes to Avoid When Filling Out Form 7200
    • IRS Provides Penalty Relief for Failure to Deposit Employment Taxes
    • IRS Urges Electronic Filing of Employment Tax Returns
    • IRS Suspends TFRP Collections Until July 15
    • DOL Posts Minor Changes to FFCRA Temporary Regulations
    • SBA Announces Interim Final Rule on Paycheck Protection Program
    • CARES Stimulus Payments May Be Reduced for Past Due Child Support
    • APA Answers Questions About COVID-19 Related Legislation
    • USCIS Posts Q&As for Temporary Policies on Form I-9, E-Verify
    • Special Report: APA's 2020 Virtual Capital Summit
  • PayState Update, Issue 9, Vol. 22, May 4, 2020
    • APA Asks States and Congress for Telecommuting Relief; Additional States Issue Nexus Guidance
    • COVID-19-Related Updates on Wage Garnishments and State Tax Levies
    • State Paid Sick Leave Updates Due to COVID-19
  • PayState Update, Issue 8, Vol. 22, April 20, 2020
    • States Issue Nexus Guidance Due to COVID-19
    • Finding COVID-19-Related Updates for Wage Garnishments
    • California Cities Pass Emergency Supplemental Paid Sick Leave Ordinances
    • District of Columbia Expands Paid Sick Leave Requirements
  • PayState Update, Issue 7, Vol. 22, April 6, 2020
    • COVID-19-Related Child Support and Garnishment Guidance
    • Federal, State, and Local Paid Sick Leave and COVID-19
    • Wage and Hour Law Guidance Due to COVID-19
    • State Paid Family Leave and COVID-19
    • State and Local Payroll Solutions (telecommuting from home due to COVID-19)
  • Payroll Currently, Issue 4, Vol. 28, April 3, 2020
    • Economic Stimulus Legislation Includes Payroll Provisions
    • President Signs Paid Sick/Family Leave Legislation
    • IRS Releases Form to Claim Advance Tax Credits Due to COVID-19
    • DOL Issues Temporary Regulations to Implement the FFCRA
    • DOL Provides More Guidance for FFCRA Legislation
    • Many Employers Must Display Mandatory Poster for FFCRA
    • Department of Education Halts Wage Garnishments for Student Loans
    • DHS Allows Flexibility in Form I-9 Requirements During COVID-19 Crisis
    • USCIS Extends Timeframe to Resolve E-Verify TNCs
    • IRS Sets Up Webpage for Tax-Related Info on COVID-19
    • Nacha Issues Reminder on ACH Responsibilities During Crisis
  • PayState Update, Issue 6, Vol. 22, March 23, 2020
    • Paid Sick Leave Provisions Related to COVID-19 Outbreak
    • Colorado Provides Emergency Paid Sick Leave
    • New York Enacts Paid Sick Leave Legislation
    • State Disability Insurance and Paid Family Leave Programs and COVID-19
    • Predictive Scheduling Requirements and COVID-19
    • Unemployment Insurance and COVID-19 - Federal and State Guidance
    • State Withholding Tax Relief Due to COVID-19

U.S. Congress

  • H.R. 748, the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This legislation contains many payroll provisions, including a delay of payment for certain payroll taxes; an employee retention credit; a new Paycheck Protection Program (PPP) that provides forgivable loans to certain employers that retain a specified number of employees; special rules for withdrawals and loans from qualified retirement plans; and a suspension of garnishments and payments of federal student loans.
  • H.R. 6201, the Families First Coronavirus Response Act. This legislation required all government employers and private employers with fewer than 500 employees to provide two weeks of paid sick leave to their employees (including part-time employees). The legislation also provided for paid FMLA leave for employees caring for a child whose school or child care provider is unavailable because of a public health emergency. Both requirements ended on December 31, 2020.
  • H.R. 133, the Consolidated Appropriations Act, 2021. This legislation continues many provisions provided in the CARES Act and the FFCRA. The legislation extends the FFCRA credit as optional for providing qualified leave until March 31, 2021, although it does not extend the requirement. It also extends and expands the employee retention credit; extends the repayment period for deferral of employees' social security tax; and creates more PPP loans.
  • H.R. 1319, the American Rescue Plan Act of 2021. This legislation extends many provisions provided in the CARES Act and the FFCRA. The legislation extends the FFCRA credit as optional for providing qualified leave until September 30, 2021, although it does not extend the requirement. The legislation increases the amount of wages eligible for the credit for expanded family and medical leave wages from $10,000 per employee to $12,000. It also extends the employee retention credit until December 31, 2021.
  • H.R. 3684, the Infrastructure Investment and Jobs Act. The law ends the employee retention credit (ERC) as of September 30, 2021 (the end of the third quarter) for most employers. The legislation retains the ERC for recovery startup businesses that pay qualified wages between July 1 and December 31, 2021.

Internal Revenue Service

  • Coronavirus Tax Relief and Economic Impact Payments - The IRS established a special section of its website providing links to additional information for individuals and families, businesses and tax exempt entities, and health plan and retirement plan administrators affected by COVID-19.
  • Coronavirus Tax Relief for Businesses and Tax Exempt Entities - The IRS established a special section of its website providing guidance for businesses and tax-exempt entities affected by COVID-19.
    • Notice 2021-65, Termination of the Employee Retention Credit under Section 3134 of the Code in the Fourth Calendar Quarter of 2021 for Certain Employers
    • Notice 2021-63, Temporary 100% Deduction Applies to Meal Portion of 2021 and 2022 Per Diem Rate or Allowance
    • Notice 2021-53, Guidance on Reporting Qualified Sick Leave Wages and Qualified Family Leave Wages Paid For Leave Provided in 2021
    • Notice 2021-49, Guidance on the Employee Retention Credit under Section 3134 of the Code and on Miscellaneous Issues Related to the Employee Retention Credit
    • Notice 2021-31, Premium Assistance for COBRA Benefits
    • Notice 2021-26, Taxation of Dependent Care Benefits Available Pursuant to an Extended Claims Period or Carryover
    • Notice 2021-24, Relief from Penalty for Failure to Deposit Employment Taxes
    • Notice 2021-23, Guidance on the Employee Retention Credit under the CARES Act for the First and Second Calendar Quarters of 2021
    • Notice 2021-20, Guidance on the Employee Retention Credit under Section 2301 of the Coronavirus Aid, Relief, and Economic Security Act
    • Notice 2021-15, Additional Relief for Coronavirus Disease (Covid-19) Under §125 Cafeteria Plans
    • Notice 2020-65, Relief with Respect to Employment Tax Deadlines Applicable to Employers Affected by the Ongoing Coronavirus (COVID-19) Disease 2019 Pandemic
    • Notice 2020-54, Guidance on Reporting Qualified Sick Leave Wages and Qualified Family Leave Wages Paid Pursuant to the Families First Coronavirus Response Act
    • Notice 2020-50, Guidance for Coronavirus-Related Distributions and Loans from Retirement Plans Under the CARES Act
    • Notice 2020-46, Treatment of Amounts Paid to Section 170(c) Organizations under Employer Leave-Based Donation Programs to Aid Victims of the Coronavirus Disease (COVID-19) Pandemic
    • Notice 2020-35, Additional Administrative Relief with Respect to Deadlines Applicable to Employment Taxes, Employee Benefits, and Exempt Organizations Affected by the Ongoing Coronavirus Disease 2019 Pandemic
    • Notice 2020-29, COVID-19 Guidance Under § 125 Cafeteria Plans and Related to High Deductible Health Plans
    • Notice 2020-23, Update to Notice 2020-18, Additional Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic
    • Notice 2020-22, Relief from Penalty for Failure to Deposit Employment Taxes
    • Notice 2020-21, Effective Date for Employment Tax Credits Under the Families First Coronavirus Response Act
    • Notice 2020-18, Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic (extended tax payment deadlines for individuals and businesses)
    • Notice 2020-15, High deductible health plans and expenses related to COVID-19

U.S. Department of Education

Social Security Administration

U.S. Citizenship and Immigration Services

U.S. Immigration and Customs Enforcement

Office of Child Support Enforcement

Education Links: