With Executive Order No. 2020-110, Governor Whitmer has lifted the stay-at-home order and allowed most businesses in Michigan to reopen—at least to some extent. There are still several sectors that are ordered to stay closed to the public, including non-essential personal care services (hair, nail, massage, etc.), and the Executive Order contains several other restrictions imposed on specific industries ...
Coronavirus Disease (COVID-19) is affecting companies across the nation and around the world in a variety of ways. Dykema is closely monitoring the legal ramifications of the crisis and evaluating the potential impact to businesses in a wide variety of industries. This Quick Reference Guide is for informational purposes only and is not intended to be legal advice ...
On May 28, 2020 the Internal Revenue Service (“IRS”) issued proposed regulations providing details for companies that may qualify for carbon oxide sequestration tax credits for qualified carbon oxide that has been securely captured, stored, or disposed of pursuant to Section 45Q of the Internal Revenue Code (the “Code”). Code Section 45Q provides a tax credit on a per-ton basis for CO2 that is sequestered ...
Through the recently issued Paycheck Protection Program (PPP) Loan Forgiveness Application and Interim Final Rule on Loan Forgiveness, the Small Business Association (SBA) has once again demonstrated that the contours and requirements of the PPP program are constantly evolving. The SBA’s recent Interim Final Rule on SBA Loan Review Procedures provides some insights on how the SBA will enforce PPP qualification and forgiveness requirements ...
In a move that will improve the time for obtaining application approvals, the U.S. Citizenship and Immigration Service (USCIS) announced today it plans on resuming premium processing for Form I-129 (non-immigrant worker) and Form I-140 (immigrant worker) petitions in phases throughout June. On June 1, 2020, it will accept Premium Processing requests for all eligible Form I-140 petitions ...
The SBA issued anInterim Final Rule(“IFR”) regarding PPP loan forgiveness on May 22, 2020, to supplement thePPP Loan Forgiveness Applicationand instructions issued one week earlier. While the new IFR did not provide a great deal of new guidance, below is a list of our key observations, which supplements our prior observations on the application itself, which are repeated at the end of this Alert ...
On May 13, 2020, the Department of the Treasury and the Internal Revenue Service (“IRS”) issued final regulations under Section 385 of the Internal Revenue Code (“Code”), T.D. 9897 (“Final Regulations”), which address the classification of certain related party debt as stock or equity for U.S. Federal income tax purposes ...
As many states and municipalities begin lifting stay at home orders and implementing steps for a phased reopening of businesses, employers should be developing a written “game plan” to minimize the risks of transitioning from a COVID-19 complete or partial shutdown to resumption of business as usual, or business in the post-Pandemic workplace ...
The SBA, in consultation with the U.S. Department of Treasury, issued the Paycheck Protection Program Loan ForgivenessApplicationand related instructions on May 15, 2020. While the application and instructions answer many of our questions about PPP loan forgiveness, it leaves many others open. Treasury has promised that the SBA also will soon issue regulations and guidance that we hope will address these questions ...
The 2020 appeal season is moving and changing quickly, so be sure to not miss any filing deadlines. The deadline for filing petitions with the Michigan Tax Tribunal is set by statute as May 31. On May 14, 2020, Michigan Governor Gretchen Whitmer issued Executive Order 2020-87 (the “Order”), to extend the deadline to protest 2020 property tax assessments to grant some amount of relief to individuals and businesses amid the coronavirus/COVID-19 crisis ...
Dykema’s Labor & Employment Practice Group created a Q&A overview addressing best practices for employers to consider when businesses return to work. The document discusses frequently asked questions concerning employer recalls, pay and benefits, medical documentation, personal protective equipment (PPE) requirements, and more ...
The USCIS on Friday, May 15, sent a request to Congress for $1.2 billion in emergency funding, proposing to pay it back with a 10% surcharge on application filing fees. The immigration service is entirely funded by these filing fees and has seen a significant drop in applications due to the coronavirus pandemic. It said in the statement it expects a 61% drop in revenue through the end of the fiscal year ...
Phased reopening of the economy is beginning all over the country. Unfortunately, there is no consistent or uniform way in which reopening is being handled. Every business should closely review not only state-level restrictions as they reopen but also local-level restrictions and federal guidance as well. Compliance with these requirements is not only important from a regulatory standpoint but also may help limit liability ...
On April 29, 2020, the Internal Revenue Service (“IRS”) issued updated guidance in the form of 94 Frequently Asked Questions (“FAQs”) in connection with the employee retention credits (“ERC” or “credits”) which are available to eligible employers pursuant to Section 2301 of the Coronavirus Aid, Relief and Economic Recovery Act, Pub. L. No. 116-136 (“CARES Act”) ...
As Michigan employers begin to think about how many employees to bring back to work, one option to consider is Michigan’s Work Share program, whereby total work hours are spread across a large group of employees as opposed to having fewer employees return to work on a full-time basis ...
Michigan Governor Whitmer signed Executive Order 2020-77 today, permitting manufacturing workers to resume work as part of the MI Safe Start Plan. Manufacturing workers, including workers in the automotive industry, are allowed to resume work on May 11, 2020, one week ahead of the planned restart date of certain Michigan automakers. See Executive Order No. 2020-77, Section 10(k) ...
As borrowers use their loan proceeds from the Paycheck Protection Program (PPP) to continue or restore payroll and call back laid-off employees, they may encounter reluctance or refusal by employees to return to work, which could impede borrower’s ability to obtain full forgiveness on their PPP loan ...
While the coronavirus has sent shockwaves through every service sector, the impact on the transportation industry has been especially severe. Automotive plants have shut down, new car sales have plummeted, and Uber and Lyft have reduced their workforce as social distancing has drastically reduced the demand for ride-hailing. In a world where stay-at-home orders are the norm, all forms of mobility have seen an abrupt decline and the entire transportation economy has suffered ...
On April 30, 2020, the Internal Revenue Service (“IRS”) issued Notice 2020-32, 2020-21 I.R.B. 1, providing guidance on the deductibility of certain expenses incurred pursuant to the Paycheck Protection Program (“PPP”) of the Coronavirus Aid, Relief and Economic Security Act, Pub. L. No. 116-135 (“CARES Act”) ...
The fight against COVID-19 has had a serious impact on businesses across the nation, and the construction industry is no exception. May 1, 2020, marked a step toward a new normal as Michigan Governor Gretchen Whitmer signed Executive Order 2020-70 easing restrictions on construction projects. The Governor’s office also issued a press release explaining how the Order applies to work on construction projects ...
The Coronavirus Aid, Relief, and Economic Security Act of March 27, 2020, (“CARES Act”) amended Section 172 of the Internal Revenue Code of 1986 (the “Code”) with respect to net operating losses (“NOL”) arising in 2018, 2019 and 2020 by restoring some of the favorable provisions applicable to NOLs prior to the enactment of the Tax Cuts and Jobs Act of 2017 (“TCJA”) ...
