Insights

General Counsel Update from March 24th

March 25, 2020

As of 2pm, I was going to write the following “In relative terms, today is a bit of a slow news day (queue the collective eye roll)”.  However, I am glad that I did not send out a note then.  Several releases (see bullet points 1, 2 & 3 below) were announced this afternoon.  The other bullets are also good things to review as well.  I hope these provide some more clarity for you and your business.

  1. Filings and payments for the IRS are delayed, but questions still linger.  The IRS published the following Notice with some helpful guidance:  https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers
  2. No official guidance for small business exemption (<50 employees) from the Families First Act, but they will be out soon.  Here is a link to a helpful Q&A ono this topic and other key components:  https://www.dol.gov/agencies/whd/pandemic
  3. PA Updated Stay at Home Order, Life Sustaining Business List & Q&A Released:  See the linked documents for an updated list and a Q&A.  Also, the Stay at Home order has now been amended to include Erie County.
  4. Useful Financial Update for BusinessesLinked here is an email we received from Dave Barnitt at Attract Capital, a experienced provider of capital structure advice and business funding.  In the email, there is a helpful rundown of important financial updates for your business.  You can also visit his website at www.attractcapital.com or his YouTube Channel at https://www.youtube.com/channel/UCXqSHpUjsnWc-z3Kecw5SFg where he has a variety of helpful videos on lending options available in the mid-market.
  5. What will the world look like post Covid-19?  Take a quick read of the article in the following link.  While I may not agree with all of the perspectives, it certainly helps me to think through my business options moving forward.  See the attached link:  https://www.politico.com/news/magazine/2020/03/19/coronavirus-effect-economy-life-society-analysis-covid-135579
  6. Questions that I have received:
    1. Business owners that elect S-Corp for tax treatment, actively work in the business & unemployment, what are the options?  The long and short of it in PA is that if you only receive a k-1 and do not receive a w-2, then you will not be eligible for unemployment compensation.  Also, if you have a controlling interest and still pay your self as a w-2 employee, you are likely not eligible for unemployment as well.  I have tried to find a percentage ownership threshold, but to no avail.  The best that I have come up with is if you run the daily operations, then you have a controlling interest.  Of course, it is a case by case basis when you file.
    2. If you have a life sustaining business and you are in a county that has a “stay at home” order, how do the employees prove they work at your business if they are stopped?  According to the Governor’s order, they are still allowed to go to work, but no guidance was given as to how to document and prove that is what you are doing.  I have an email into the State asking for guidance.

Please see all of our updates at the following link:  https://mpl-law.com/resource-center/

As always, please don’t hesitate to email myself or anyone in our office with any questions or comments.  Also, please feel free to forward our updates to others. 

Keep moving forward!  We will get back to normal.

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