Defeating COVID-19 will take all of us working together & staying connected.
But when different information comes from county, state, and federal departments, it can be hard to keep track of. We’re compiling a list of daily updates so you have them in one place.
Hawaii Department of Health May 1 Update
Department of Health:
Only One New COVID-19 Case Reported
The single case of coronavirus being reported by DOH is an O‘ahu adult and brings the total positive case count in Hawai‘i to 619. The City and County of Honolulu has 400 of the cases reported since Feb. 28th.
Hawai‘i COVID-19 Counts as of 12:00 noon, May 1, 2020
|Island of Diagnosis||New Cases|
(including new cases)
|Total Released from Isolation|
|Residents Diagnosed outside HI||0||9|
|Total released from isolation||532|
** Refers to positive cases that have an unknown county of diagnosis at the time of this report. As more information becomes available for these cases, they are assigned to the proper County of Diagnosis. A negative number indicates the number of previously unknown cases that have now been assigned to a county.
Laboratory* Testing Data
|Total Number of Individuals Tested by Clinical and State Laboratories||Positive||Negative|
*Electronic Laboratory Reporting **21 test results were inconclusive.
For more tables please visit: https://health.hawaii.gov/docd/
DOH Distributes COVID-19 Rapid Test Equipment
The DOH State Laboratories Division (SLD) has distributed a total of 12 Abbott ID NOW COVID-19 rapid test instruments to all counties. The rapid coronavirus tests can produce results within 15 minutes when conducted in a certified laboratory. “Having this capability to test a critically ill patient within 15 minutes is a great tool in the fight against COVID-19,” said Dr. Edward Desmond, State Laboratories Division Administrator. “It helps us detect the virus quickly and respond much faster to help the patient and inform staff to ensure safety measures are in place.” Six instruments have been sent to county medical systems (two each to DOH District Health Office laboratories on Kaua‘i, Maui and Hawai‘i) and six instruments to clinical laboratories and health systems on O‘ahu (two each to Diagnostic Laboratory Services, Clinical Laboratories of Hawaii, and Kaiser Permanente).
The Abbott instruments were provided at no cost to the state with federal funding from the International Reagent Resource (IRR). Emergency Use Authorization from the Food and Drug Administration (FDA) specifies that use of the rapid testing equipment be conducted on symptomatic patients. Requesting physicians will utilize the test kits based on priority symptoms and factors. Watch calibration of a rapid test instrument at SLD: https://vimeo.com/414129299
Department of the Attorney General:
Newlyweds Arrested for Quarantine Violation
A California couple allegedly scoffed at Hawai‘i’s mandatory traveler self-quarantine mandate and were arrested yesterday by special agents from the Dept. of the Attorney General.
20-year-old Borice Leouskiy and 26-year-old Yuliia Andreichenko of Citrus Heights, CA, came to Hawai‘i on their honeymoon and entered a Waikiki-area hotel after 10 p.m. on Wednesday. Both were raised in the Ukraine and Andreichenko is a Ukranian National, while Leouskiy is a U.S. citizen. A front desk manager read them the requirements of the self-quarantine order. They reportedly said this contradicted what airport screeners told them. They also indicated they planned to visit friends and go to parks and beaches. The hotel manager reiterated the rules and said the couple scoffed at him and then left the hotel.
After midnight, they returned with a pizza and told the manager they were allowed to be outside and to buy food. They checked in and refused to sign the required quarantine acknowledgement. Yesterday morning, the hotel’s general manager was informed Leouskiy and Andreichenko had again left their room. When they came back, they were told again, they were in violation and again said their activities were permitted. AG Special Investigators were notified and arrested the couple. They are being charged under Hawai‘i Revised Statutes for unsworn falsification to authority and violation of the 14-day quarantine.
Attorney General Clare Connors noted, “We appreciate the vigilance and cooperation of the hotel staff, and staff at other hotels, in helping maintain the health and safety of visitors and residents. It is important that everyone flying into Hawai‘i at this time, abide by our mandatory rules. Law enforcement, in partnership with other state and county agencies and the travel industry are continuing to monitor compliance with the mandatory self-quarantine rule.”
Hawai‘i Tourism Authority:
640 Passengers Arrive in Hawai‘i Thursday
Yesterday a total of 640 people arrived in Hawai‘i including 166 visitors and 196 residents. There was a total of 14 arriving flights. Yesterday marked five weeks since the state’s mandatory 14-day self-quarantine started for all passengers arriving in Hawai‘i from out of state. This table shows the number of people who arrived by air from out of state yesterday, the next table shows interisland travel. Visitors are people who do not have a Hawai‘i ID including essential health care workers, essential federal workers, former residents such as mainland college students coming to stay with family, military on temporary assignment, and leisure travelers.
AIRPORT ARRIVALS FOR WEDNESDAY, APRIL 30 2020
|Intended New Resident||20||69||89|
Department of Business, Economic Development and Tourism
INTERISLAND AIRPORT ARRIVALS AND DEPARTURES FOR APRIL 28, 2020
Department of Labor and Industrial Relations:
State Pays Out $87,521,534 in Unemployment Insurance Benefits
DLIR announced Friday that it distributed $87,521,534 in unemployment insurance benefits over the past week. $47,317,800 of that total represents the $600 bonus that was made available by the CARES act that was signed into law on March 27, 2020. DLIR Director Scott Murakami said, “The department was again able to deliver a record level of benefits in a week and for that I am tremendously grateful for our workers. We know that there are still many in our community who are suffering, and we are resolute in providing a greater level of relief as soon as possible.”
Department of Public Safety:
Jail Population Report Update
From March 2 to May 1 there has been an 810-person decrease in the jail population across the state. These reductions are due to the huge, up-front diversion efforts made by county police departments, PSD’s Intake Services Center Division, and the State Judiciary.
Currently there are no confirmed cases of COVID-19 in the prisons or jails. Testing report:
Purchase of PPE and Inmate Mask Sewing Program
PSD keeps a regular supply of personal protective equipment (PPE) for normal circumstances, but like all health care workers and first responders across the country, supply on hand was quickly depleting. To get ahead of the need, PSD submitted a large order for extra PPE which was received last week and distributed to correctional facilities across the state.
Inmates in the sewing program at the Waiawa Correctional Facility on O‘ahu, the Kulani Correctional Facility, and the Hawai‘i Community Correctional Center are producing as many as 4,400 cloth barrier masks a day. Masks made on Hawai‘i Island will be shipped to the Hawai‘i Correctional Industries (HCI) O‘ahu office for distribution, thanks to support by Aloha Air Cargo. HCI has also delivered 6,021 cloth masks to other state and federal agencies and are continuing to fill orders for over 50,000 masks. The orders are expected to be completed by the end of May. HCI will expand orders from the public early next week. HCI can be reached at 808-677-6638 or by email at firstname.lastname@example.org
Department of Land and Natural Resources
COVID-19 Silver Lining-Construction Moved up on Royal Hawaiian Groin Replacement
The existing Royal Hawaiian groin was installed 93-years ago and for decades it protected one of the most popular stretches of beach in Waikīkī. The virtual shut-down of Hawai‘i’s visitor industry during the COVID-19 crisis is providing a rare silver-lining. Next week, the DLNR Office of Conservation and Coastal Lands (OCCL), in partnership with the Waikīkī Beach Special Improvement Association (WBSIDA), is kicking off work on a modern replacement groin, with construction work made much easier and safer without hundreds of visitors on the beach. The construction of the 160-foot-long replacement groin was originally set to begin this fall but was moved up to next Monday when a contractor will begin staging needed equipment and supplies on the beach. Learn more: https://dlnr.hawaii.gov/blog/2020/05/01/nr20-053/
Kauai Nighttime curfew to go into effect starting Friday, March 20 in support of emergency efforts; Mayor’s tells visitors “Kaua‘i is on vacation”
Mayor Derek S.K Kawakami has implemented, via emergency rule, an islandwide nighttime curfew beginning Friday, March 20. The curfew will be in effect from 9 p.m. through 5 a.m. daily until further notice. Every individual within the County of Kaua‘i must remain in their residence during these specified hours.
“This decision was made with three goals in mind – one, protecting and preserving our existing resources, two, managing the spread of COVID-19 by increasing social distancing, and three, ensuring that essential services, operations, and family care can continue,” said Mayor Kawakami. “After taking an assessment of what will likely be a very long journey for all of us and the amount of limited resources that we have, specifically public safety, first responder, and healthcare workers, we must take bold steps to ensure that our public safety officials, first responders, and healthcare workers have the necessary environment in which to keep us all safe.”
Mayor’s Emergency Rule #2 sets forth exceptions to the curfew, including:
- Commuting to and from work;
- Working for an essential service provider whose shifts are within the curfew window;
- Delivery services associated with food service establishments or stores that sell food and household supplies; and
- Seeking medical attention.
Our houseless community is asked to shelter in place and avoid movement during these curfew hours.
Mayor Kawakami also stated that airline travel to and from the island of Kaua‘i be limited to essential needs only. “Until further notice, visitors should not be traveling to our island for recreational purposes,” emphasized the Mayor. “Kaua‘i is on vacation!”
Further, vacation industry partners are urged to work with their marketing teams to refrain from marketing Kaua‘i as a place to visit during this time in order to protect the health and safety of the community.
“We understand that these measures will result in hardships for many of our business owners and residents,” added Mayor Kawakami. “But the longer it takes us to make these drastic decisions, the longer it will take us to get to a point of economic recovery.
Small business owners are urged to visit, https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources for a list of available resources. Additionally, workers experiencing layoffs should visithuiclaims.hawaii.gov for assistance.
A copy of the Mayor’s Emergency Rule #2 can be found online at our KEMA website dedicated to COVID-19, www.kauai.gov/covid-19.
Apply for a SBA Economic Injury Disaster Loan
The U.S. Small Business Administration has approved Governor David Ige’s request for a COVID-19 disaster declaration. Hawaii businesses can now apply for loans at this link. SBA recommends submitting electronically to expedite the loan process.
There are 3 SBA forms that will be required (SBA Form 5, SBA Form 413, and SBA Form 2202):
-Loan application (SBA Form 5), completed and signed (this is electronic/online in the portal)
-Tax Information Authorization (IRS Form 4506-T), completed and signed by each applicant, each principal owning 20 percent or more of the applicant business, each general partner or managing member; and, for any owner who has more than 50 percent ownership in an affiliate business. Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management
Complete copies, including all schedules, of the most recently filed Federal income tax returns for the applicant business; an explanation if not available
-Personal Financial Statement (SBA Form 413) completed, signed, and dated by the applicant, each principal owning 20 percent or more of the applicant business, and each general partner or managing member
-Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used)
If your business has been impacted by COVID-19, then these working capital loans of up to $2 million may be just what you need. They can be used to pay fixed debts, payroll and other bills that aren’t being paid because of the disaster’s impact.
City & County of Honolulu Stay at Home/Work from Home Order
Mayor Kirk Cadlwell has issued an emergency order requiring all individuals in the City and County of Honolulu to “Stay at home/Work from home”, except for certain essential activities and work to provide essential business and government services or perform essential public infrastructure construction, including housing.
The intent of this Order is to ensure that the maximum number of people self-isolate in their places of residence to the maximum extent feasible, while enabling essential services to continue, to slow the spread of COVID-19 to the maximum extent possible.
This Order is effective at 4:30 p.m. on Monday, March 23, and will continue through Thursday, April 30 at 4:30 p.m. Violation of any of the Orders is punishable as a misdemeanor, with fines of up to $5,000 up to a year in jail, or both.
Essential activities include, but are not limited to, obtaining medical supplies or medication, visiting a health care professional, obtaining necessary services or supplies such as groceries, and outdoor activities in locations as allowed by law.
Essential business includes, but is not limited to, healthcare operations, grocery stores and supermarkets, businesses that provide food, shelter and social services, gas stations, banks and financial institutions, and media services.
• Tasks essential to their health and safety
• To obtain necessary services or supplies (groceries, household consumer products, products necessary to maintain the safety, sanitation, and essential operation of residences)
• To engage in outdoor activity in locations as allowed by law (walking, hiking, or running with or without pets)
• To perform work providing essential products and services
• To care for a family member or pet in another household
• Healthcare Operations and Essential Infrastructure
• Establishments engaged in the retail sale of food and other household consumer products (Grocery stores, certified farmers’ markets, farm and produce stands, supermarkets, food banks, convenience stores, etc.)
• Food cultivation (farming, livestock, fishing)
• Service providers for homeless or impoverished individuals
• Newspapers, television, radio, and other media services
• Gas stations and auto-supply, auto-repair, and related facilities
• Banks and related financial institutions
• Hardware stores
• Maintenance service providers (plumbers, electricians, exterminators, etc.)
• Businesses providing mailing and shipping and delivery services
• Educational institutions providing distance learning, critical research, or performing essential functions
• Laundry service providers (laundromats, dry cleaners, industrial laundry services)
• Facilities that prepare and serve food, but only for delivery or carry out
• Businesses that supply products needed for people to work from home
• Businesses that supply other essential businesses with the support or supplies necessary to operate
• Airlines, taxis, and other private transportation providers
• Home-based care for seniors, adults, or children, and/or people with developmental disabilities, including meal delivery
• Residential facilities and shelters for seniors, adults, and children, and/or people with developmental disabilities
• Professional services, such as legal or accounting services, insurance services, and real estate services
• Childcare facilities providing services that enable employees exempted in this Order to work as permitted
• Businesses that provide food, shelter, and other necessities of life for animals
• Hotels and motels, to the extent used for lodging, and service providers to hotels and motels
• Funeral, mortuary, cremation, burial, cemetery, and related services
• Critical trades (plumbers, electricians, exterminators, janitorial staff, security, HVAC, painting, moving services, etc.)
• Critical labor union functions that are essential activities
County of Maui Stay at Home/Work from Home Order
Mayor Michael Victorino announced a “stay at home and work from home” amendment to the Public Health Emergency Rules in an effort to fight the spread of COVID-19.
The amendment is effective at 12:01 a.m. Wednesday, March 25, 2020.
The new order will be in effect until April 30.
“The health and safety of our community has always been my top priority and I believe we need to take bold actions if we are to stop the spread of this virus,” Mayor Victorino said. “I am ordering all our residents to stay at home and our visitors to stay in their rooms as much as possible. Critical services and operations will continue, and everyone will still be able to get groceries and essential supplies.
“However, we need to work together and continue to take care of each other with compassion and care.”
Overview of the new amendment:
Order to Stay/Work from home:
- Stay at home or place of lodging except for “essential activities,” “essential businesses” or “government operations”
- Where possible, County of Maui departments will employ tele-work and other methods to provide distancing, while ensuring continuity of services
- NO public or private gatherings outside the home
- Essential Activities include:
- Essential to maintain health and safety, like getting medicine or seeing a doctor
- Getting food, pet food, and supplies necessary for staying at home
- Doing solitary outdoor activity, such as walking, hiking, or running
- Performing work to operate an essential business or essential government function (defined below)
- Caring for a family member in another household
- Caring for elderly, minors, dependents, person with disabilities, or other vulnerable persons
- Travel limited to essential activities or operation of essential business or essential government function.
Government and Private Services or Businesses May Remain OPEN:
- First responders, emergency management personnel, emergency dispatchers, law enforcement and County of Maui personnel
- Healthcare operations, including home health workers
- Essential infrastructure, including operation of public transportation and utilities
- Grocery stores, food banks, convenience stores
- Businesses that provide necessities of life for economically disadvantaged individuals and shelter facilities
- Pharmacies, health care supply stores, and health care facilities
- Gas stations, auto repair facilities, and auto supply stores
- Financial institutions
- Refuse collection
- Hardware, lumber, and building materials stores
- Maintenance service providers, like plumbers, electricians, exterminators necessary to maintain safety, sanitation, and essential operation of residences and businesses
- Laundromats and laundry service providers
- Businesses that primarily ship or deliver groceries, food and goods
- Childcare facilities that enable essential employees to go to work
- Newspapers, television, radio, and other media
- Construction and maintenance, public and private
- Agricultural operations
- Businesses that supply other essential business with support or supplies necessary to operate
- Business conducting legally mandated activities
- Businesses that provide food, shelter, and other necessities of life for animals, including animal shelters, rescues, kennels, and adoption facilities
- Funeral, mortuary, cremation, burial, cemetery, and related services, provided, the services provided must comply with Social Distancing Requirements at all times reasonably possible
- Public and private K-12 schools, colleges, and universities for distance learning and essential functions
- Businesses needed to support essential governmental or essential business functions
- Hotels, motels and support services
Public and Private Facilities and Businesses Required to CLOSE
- All businesses not listed as “essential businesses”
- Restaurants and cafes will be allowed to provide takeout and delivery service
- Bars, nightclubs, theaters, public gathering venues, and tourist attractions
- Gyms, recreation facilities, and other places of public gathering, regardless of size
- County parks, golf course and beach parks are ordered closed
- Violation of the rules is punishable as a misdemeanor, with fines of up to $5,000, up to a year in jail, or both.
“Decisive action is needed to stem the spread of COVID-19 and protect our healthcare resources, our hospital beds, respirators and the health and safety of doctors, nurses and other healthcare professionals,” Mayor Victorino said. “I humbly ask all of us to do our part to flatten the curve and come together as a community.”
For more information, visit the County of Maui’s website at mauicounty.gov.
Relief for Taxpayers Affected by COVID-19 Emergency
As announced by Governor Ige today, the State of Hawaii is granting special tax relief for State Income taxpayers similar to the Internal Revenue Service (IRS) in response to the COVID-19 emergency.
Hawaii 2019 Income tax filing and payment due dates will be extended:
- Individual and Corporate Income tax returns for Tax Year 2019 due from April 20, 2020 to June 20, 2020 are extended to July 20, 2020.
- Individual Income tax payments for Tax Year 2019 due from April 20, 2020 to June 20, 2020 are extended to July 20, 2020.
- Corporate Income tax payments for corporations for Tax Year 2019 due from April 20, 2020 to June 20, 2020 are extended to July 20, 2020.
- Taxpayers who are entitled to a refund or pay the Tax Year 2019 Income tax due by July 20, 2020 receive an automatic extension to file the associated return by October 20, 2020.
Additional action is not needed by Income taxpayers to participate in this tax relief program. The Department is making the necessary system changes for these new due dates.
Individual income taxpayers who are expecting refunds for Tax Year 2019 are encouraged to file as soon as possible. Hawaii residents can file Form N-11 (Hawaii Resident Income tax) for FREE using Hawaii Tax Online (hitax.hawaii.gov).
Filing and payment dates for all non-Income taxes (Withholding, General Excise, Transient Accommodations, etc.) are unchanged.
City announces new initiatives and changes to transportation programs
The Department of Transportation Services (DTS) announces new initiatives and changes to current practices to assist O‘ahu residents and businesses during the stay-at-home period.
Restaurants and Food Trucks:
- Designated Parking Stalls for Restaurant Drive-Thru and Pickup:
Brick and mortar restaurants with limited parking and adjacent on-street metered parking may obtain up to three signed and marked bags to cover meters fronting and adjacent to their establishments. No parking will be allowed in these stalls designated with the special bag. These stalls are intended to allow customers to drive up to restaurants who may now offer curbside pickup. These stalls are not reserved specifically for any one restaurant; neighboring restaurants must share the use of these parking spaces with bagged meters.
- Street Usage Permits for Food Trucks:
Food trucks and other businesses involved in the distribution of food may obtain a special Street Usage Permit, valid until April 30, which will allow their vehicles to park without paying in City metered stalls. These vehicles may not park in stalls already bagged and marked, as described in Item 1 above, for drive-thru pick up.
Starting Wednesday, March 25, between 2:00 and 4:00 pm, and ending on Friday, April 3, DTS staff will be stationed in the lobby of Honolulu Hale, 530 South King Streetto issue loading zone meter bags and Street Usage Permits for food trucks. Park on South King Street, immediately fronting Honolulu Hale, and visit the table fronting the City Clerk’s Office on the ground floor. NOTE: Thursday, March 26 is Prince Kuhio Day, a state holiday, and Honolulu Hale will be closed.
For RESTAURANTS: Provide your restaurant name, address, and contact name and phone number.
For FOOD TRUCKS: Bring a copy of your annual Department of Health permit and provide your business name, license plate number, contact name, and phone number.
Transportation and Street Usage:
- Parking Allowed All-Day in Specific “No Parking-Tow Away Zones” in Residential Neighborhoods
Recognizing that Honolulu residents are required to work from home, when possible, and that traffic is greatly reduced during AM and PM peak hours, starting Friday, March 27, DTS will allow parking in specific marked “No Parking-Tow Away Zone” locations. This will allow residents in these areas to park all day, throughout peak hours. Metered rates, if meters are present, will still apply in designated hours. These areas include:
- South King Street between South Street and University Avenue
- South Beretania Street between University Avenue and Ward Avenue
- Wilder Avenue between Pensacola Street and Dole Street
- Date Street between Kapiolani Boulevard and Kapahulu Avenue
- Suspension of Contraflow Operations on Kapiolani Boulevard and Ward Avenue
Due to reduced traffic, starting Friday, March 27, contraflow operations on City streets Kapiolani Boulevard and Ward Avenue will be suspended until April 30.
- Allowance of Construction on City Streets through Normal Peak Hours
DTS is considering allowing closure of City streets for construction purposes through the AM and PM peak hours due to reduced on-street traffic volumes on a case-by-case basis. Please call DTS’ Street Usage Branch at (808) 768-8387for more information.
DTS is still accepting regular street usage permits for construction and events. Permit requests must be dropped off at Fasi Municipal Building, using the drop-off tray with the name, email address, and phone number of applicant. Permits will be processed, however, no staff will be available at the front desk. Permit applicants will be contacted via phone or email regarding permit approval. Payments will still be accepted.
Please note: street usage permits for EVENTSplanned between March 20th and May 1st willNOT be accepted due to current State and City and County emergency orders prohibiting gathering in light of social distancing requirements.
Sen. Brian Schatz Guide for Small Business Federal Resources
The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides relief for small businesses that have trouble covering payroll and operating expenses because of the COVID-19 pandemic. The new law creates a Small Business Administration (SBA) loan program, called the “Paycheck Protection Program” (PPP), that expands benefits and eligibility for SBA disaster loans, covers payments on existing SBA loans, and creates new tax credits to help cover the cost of paid leave and payroll.
The Paycheck Protection Program provides small businesses with zero-fee loans of up to $10 million to cover payroll and other operating expenses. Up to 8 weeks of payroll, mortgage interest, rent, and utility costs can be forgiven. Payments on principal and interest are deferred for one year. More information on this program is available here.
The CARES Act creates a new emergency grant of $10,000 for small businesses that apply for an SBA economic injury disaster loan (EIDL). EIDLs are loans up to $2 million with interest rates of 3.75% for businesses and 2.75% for nonprofits, and principal and interest payments deferred up to 4 years. The EIDL loans may be used to pay for expenses that could have been met had the disaster not happened, including payroll and other operating expenses. The EIDL grant does not need to be repaid even if the applicant is denied an EIDL. A small business may apply for an EIDL grant and a Paycheck Protection loan. The EIDL grant will be subtracted from the amount of the Paycheck Protection loan that is forgivable. More information on this program is available here.
For small businesses that already have an SBA loan (such as a 7(a), 504, or microloan) or take one out within 6 months after the CARES Act is enacted, the SBA will pay all loan costs for borrowers, including principal, interest, and fees, for six-months. SBA borrowers may also seek an extension of the duration of their loan and delay certain reporting requirements. More information on this program is available here.
Relief for Small Business Government Contractors
If you are a government contractor, there are a number of ways that Congress has provided relief and protection for your business. Agencies will be able to modify terms and conditions of a contract and to reimburse contractors at a billing rate of up to 40 hours per week of any paid leave, including sick leave. The contractors eligible are those whose employees or subcontractors cannot perform work on site and cannot telework due to federal facilities closing because of COVID-19. If you need additional assistance, please reach out to your local Small Business Development Center, Women’s Business Center, SCORE chapter, or SBA District Office. You should also work with your agency’s contracting officer, as well as the agency’s Office of Small and Disadvantaged Business Utilization (OSDBU).
The CARES Act creates a refundable payroll tax credit for businesses, large and small, that retain their employees during the COVID-19 crisis. Employers are eligible if they have been fully or partially suspended as a result of a government order, or they experience a 50% reduction in quarterly receipts as a result of the crisis. For employers with 100 or fewer full-time employees, they may claim a credit for wages paid to all of their employees, up to $10,000 a person. For employers with more than 100 employees, they may claim a credit for those employees who are furloughed or face reduced hours as a result of the employer’s closure or economic hardship. The Department of the Treasury is authorized to advance payment of the employee retention tax credit. This tax credit is not available if the employer takes an SBA paycheck protection loan. More information is available here.
The CARES Act allows employers to delay paying the employer-portion of payroll taxes through the end of 2020. The deferred amount is due in two installments – 50% is due before December 31, 2021, and the other 50% is due before December 31, 2022. Deferral is not available if the employer takes an SBA paycheck protection loan. More information is available here.
The CARES Act allows the Treasury to send advance payments of tax credits available to employers that are required to provide up to 12 weeks of coronavirus-related paid leave to their employees. More information is available here.
The CARES Act provides other forms of tax relief for businesses, including loosening requirements for net operating losses, and limitations on business interest deductions. The CARES Act also permanently fixes the qualified improvement property (QIP) error in the 2017 tax law, so that QIP investments are entitled to 100% recovery over 15 years. Distillers are exempt from excise taxes on undenatured alcohol for the purpose of producing hand sanitizer. More information is available here.
Delay for Single Employer Pension Plans
Single employer pension plans are allowed to delay quarterly contributions for 2020 until the end of the year. Employers may also use 2019 funded status for the purposes of determining funding-based limits on plan benefits for the plan years that include 2020.
For more information about SBA loan programs, please visit the Small Business Administration website. More information about small business programs in the CARES Act and other resources for small businesses can be found on the U.S. Senate Committee on Small Business and Entrepreneurship website.
For more information about tax issues, please check the IRS’s website at www.irs.gov/coronavirus.