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Coronavirus Weekly HR Update: March 20, 2020

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Each week, we’ll be compiling the top headlines and updates regarding the COVID-19 pandemic and how it impacts your company and workforce.

Families First Coronavirus Response Act

The Families First Coronavirus Response Act was signed on March 18 and will go into effect on April 1, 2020, with some provisions remaining effective until December 31, 2020.

Three key sections will directly affect employers:

  • Emergency Family and Medical Leave Expansion Act
  • Emergency Paid Sick Leave Act
  • Tax Credits

>> Read more about how the Act affects your business.

California Governor Newsom Orders State Lockdown

Thursday night Governor Newsom issued the executive order for all California residents to stay home except for essential activity and essential jobs. Currently, there is no end date for the lockdown.

What will remain open during this time:

  • Grocery stores, farmers markets, food banks, convenience stores
  • Take-out and delivery restaurants
  • Gas stations
  • Pharmacies
  • Laundromats/laundry services
  • Banks
  • Essential state and local government offices and services, including law enforcement

>> Read more about the California state lockdown.

IRS Extends Tax Filing Deadline

March 20, Steven Mnuchin, U.S. Treasury Secretary, announced that the IRS is extending the tax filing deadline to July 15, free of interest and penalties. Initially, the extension only applied to tax payments, but at Trump’s direction, tax day extended from April 15 as well. The decision sprang from hopes of giving Americans who owe the IRS a break in the wake of the coronavirus.

It is still highly encouraged to file tax returns as soon as possible, as many people can expect refunds.

The new deadlines apply to federal income tax only, but some states have rolled out delays of their own. California pushed back the deadline for state tax filing to July 15 for individuals and businesses unable to file on time because of compliance with public health requirements related to COVID-19 filings (more below).

>> Read more about federal tax deadlines.

California Extends State Tax Filing Deadline

California is following the lead of the IRS and extending the tax filing deadline to July 15. The state Franchise Tax Board decided Wednesday night to extend the deadline further from the initial 60-day extension made just five days prior.

The extension applies to both individuals and businesses for the following:

  • 2019 tax returns
  • 2019 tax return payments
  • 2020 first and second quarter estimated payments
  • 2020 taxes and fees for limited liability companies
  • 2020 non-wage withholding payments

The state Franchise Tax Board also put together this chart of COVID-19 extensions to file and pay.

>> Read more about state tax deadlines.

California Removes One-Week Waiting Period

California Governor Gavin Newsom issued an executive order lifting the standard one-week waiting period for unemployment and disability insurance. The change intends to help people who are out of work or disabled due to the coronavirus.

>> Read more about benefits available for affected workers.

PIHRA Launches Coronavirus Resource Hub

The hub features valuable resources to help employers navigate this difficult time. All in-person PIHRA events are canceled through the end of March, but they plan to provide general facts, resources, and updates through the Coronavirus Resource Hub.

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