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At SobelCo we have one goal and that is to keep you well-informed by providing you with accurate, up-to-date information, details, and suggestions that will help you respond to, and recover from, the impact of the coronavirus on you, your business, your family, and your community.

To achieve this in the most efficient and meaningful manner, we have created this webpage for you, filling it with specific news for both the corporate and nonprofit communities. To ensure that you remain informed across a wide range of critical areas, we will continue to identify the most pertinent discussions - while also passing along the resources you most need, including articles, hotline numbers, press releases, websites, and more.

If you have any questions, or seek additional insights, please let us know. Based on your feedback we can continue to edit and reinforce our communications as necessity dictates. 

Coronavirus Aid, Relief, and Economic Security Act (CARES Act) 

March 16, 2020 Webinar recording Coping with Crisis in the Workplace - An Interactive Conversation

Have a question or need advice? The SobelCo COVID-19 team is here to help!

Contact Us

Tax Information

In our ongoing effort to bring you the most current and accurate business and financial news, we are sharing this information with you. As changes occur, we will keep you informed!

 

Coronavirus Aid, Relief, and Economic Security Act (CARES Act) 

IRS Released Provisions of Relief

  • Federal income tax returns normally due on April 15, 2020 are not due until July 15, 2020. The July 15, 2020 due date can be extended to October 15, 2020.
  • The deadline for making Federal income tax payments normally due April 15, 2020 for individuals and corporations are postponed to July 15, 2020 regardless of the amount owed. This relief applies to tax payments due in respect to the 2019 taxable year and Federal estimated income tax payments due on April 15, 2020 for the taxpayer’s 2020 taxable year.
  • As a result of the postponement of the due date for making Federal income tax payments from April 15 to July 15, 2020, the period beginning April 15 and ending July 15, 2020 will be disregarded in the calculation of any interest, penalty or additional tax for failure to pay.
  • The relief DOES NOT apply to tax payments due on June 15, 2020 for the taxpayer’s 2020 taxable year. This may change but as of this writing, estimates are due on June 15.
  • No extension is provided for the payment or deposit of any other type of Federal tax or for the filing of any tax return or information return.
  • The taxpayer will not be provided relief from interest or penalties that may have accrued due to any underpayments prior to April 15, 2020

Local Provisions of Relief

  • Connecticut, New York and Pennsylvania have extended their tax filing deadline to July 15, 2020.
  • Connecticut and Pennsylvania have extended the due date for first and second quarter estimated payments to July 15, 2020.
  • We anticipate that the tax filing deadline for New Jersey will be June 30, 2020. Nothing has been finalized.
  • NY and NJ have not announced the due dates for first and second quarter estimated tax payments.

Click here to visit the IRS website for more information 

Click here to visit the AICPA website for information on State filings deadlines

U.S. Department of the Treasury, IRS and the U.S. Department of Labor announce plan to implement coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing coronavirus-related leave

Sales and Use Tax

  • New York has announced information regarding the abatement of penalties and interest for sales and use tax due to the Novel Coronavirus, COVID-19. We suggest you click to the link for details as they stand today: https://www.law360.com/tax-authority/articles/1256177/ny-offers-sales-tax-relief-in-response-to-covid-19
  • There has been no sales and use tax guidance issued as yet from New Jersey, in both Connecticut and Pennsylvania, the deadlines have been extended to July 15, 2020 for payments due for 2019 as well as for first and second quarter 2020 estimated payments.

 Understanding Section 139

Payroll Taxes and Excise Taxes

  • As of March 27, 2020, taxes are due on normal due dates

Gift and Estate Income Tax Returns 

  • As of March 27, 2020, no relief,  Normal filing and due dates.

IRS Form 990

  • For nonprofit organizations with a 12/31/19 year-end, Form 990 must be filed on May 15, 2020. No extensions have been announced yet.
  • Organizations that have a 6/30/2020 year end and are currently on extension need to file by May 15, 2020.

Financial Business Support

Small Business Administration (SBA) 

The SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%, however, this is subject to some changes in the future. There is the possibility that charitable and religious organizations may not be eligible at all. Stayed tunes for updates!

For additional information, please contact the SBA disaster assistance customer service center. Call 1-800-659-2955 or visit the Office of Disaster Assistance website for more information.

New Jersey

The State of New Jersey has established a special website devoted to business concerns during the coronavirus emergency. The site, cv.business.nj.gov, will be updated as new information becomes available. New Jersey is now certified to begin accepting Disaster Loan applications from NJ businesses impacted economically by COVID-19.

New Jersey Business Action Center 

Business owners can also call the hotline for the New Jersey Business Action Center at 800-JERSEY-7 

New York

The City of New York will provide relief for small businesses experiencing a reduction in revenue because of COVID-19. Businesses with fewer than 100 employees who have seen sales decreases of 25% or more will be eligible for zero interest loans of up to $75,000 to help retain employees and ensure business continuity. More information can be found by clicking here.

The City is also offering small businesses with fewer than 5 employees a grant to cover 40% of payroll costs for two months to help retain employees.

Additional Expense Line for Items Directly Related to COVID-19

In response to the economic impact of the coronavirus pandemic, we are advising business owners and senior leaders to create an additional expense line for items directly related to COVID-19.  Here is what you need to know regarding capturing the information on anything related to COVID-19:

  • Include what you are spending for supplies
  • Include the time you’re are spending.  (Ex.: If you have added extra safety meetings, calculate the time individuals are spending on those meetings and include as a line item)
  • Keep these records in a contemporaneous manner. 

There are two reasons for taking these actions:

  1. If the government does offer relief, your information will be readily available with all the necessary, documented details
  2. As we move past this into a recovery phase, you may consider approaching a bank. If so, it will be helpful to have a complete understanding of the full range of expenses you incurred while running the business. When the bank reviews your financial statements, they will have a clearer, more concise and accurate understanding based on the information you have provided in that line item.  

Information for Nonprofits

The Center for Non-Profits is an excellent source for information regarding the impact of the coronavirus on the nonprofit community.  Click here for their blog. These are updated regularly and focus specifically on the effect for nonprofit organizations, their fundraising and friend raising initiatives, and the pressure to deliver critical community services in a time of crisis. Center for Non-Profits COVID-19 Crisis and New Jersey's Non-Profit Rapid Response Survey

To read the letter sent to Governor Phil Murphy, Senate President Steve Sweeney, Senate Republican Leader Tom Kean, Jr. Lieutenant Governor Sheila Oliver, Assembly Speaker Craig Coughlin, Assembly Republican Leader, Jon Bramnick on behalf of all New Jersey nonprofit organizations, click here

IRS Form 990

  • For nonprofit organizations with a 12/31/19 year-end, Form 990 must be filed on May 15, 2020. No extensions have been announced yet.
  • Organizations that have a 6/30/2020 year end and are currently on extension need to file by May 15, 2020.

Information Relating to Human Resources

  • NJ Department of Labor and Workforce Development -  Information about coronavirus and what employees and employers need to know.  
  • ADP -  This website specifically addresses many of the most critical Human Resource issues facing businesses today by providing practical suggestions that have evolved through interaction with local authorities and the World Health Organization. You can visit their website and check out their Business Resiliency Plan Fact Sheet.
  • Coronavirus - Update for Employer from Riker Danzig Labor & Employment Client Alert
  • COVID-19 Q&A: Employment Issues with Emergency Business Closures - By: Dennis J. Alessi and Steven I. Adler
  • Worker Adjustment & Retaining Notifications (WARN) Act - We can state that California has suspended requirements under their version of the WARN Act. As far as New Jersey is concerned, there is nothing to report but we would like to think that New Jersey will suspend the requirement since the pandemic was not a foreseen issue and business closures were mandated by the Governor’s executive order.  We suggest that you check with your legal counsel for further information.


Frequently Asked Questions

As the situation around the coronavirus outbreak continues to escalate, we have had several questions posed to us. Each day we will select one or two of the most common queries and share them with you. In addition, you can email us directly at colleen.logan@sobelcollc.com and we will answer you as quickly as we can.

 

Is my company an essential business?

The term "essential" remains ambiguous because the circumstances surrounding this emergency continue to change.  There are 16 emergency support functions deemed essential by FEMA and the Department of Homeland Security.  NJ has specific categories. The office of the NJ State Police Superintendent can direct you to the specific categories of essential businesses at https://www.njsp.org/division/office-superintendent.shtml

I am trying to help out my employees so that they can continue working during this pandemic but many are worried about their children since school is closed. Can I pay their day care expenses during this pandemic so that they can continue working without it being taxed as additional income for them?

We believe the tax code section 139 actually allows employers to provide deductible disaster assistance to employees that is not included in the taxable income of the employees.

I saw the article in the WSJ announcing the deadline for tax return filing has been extended by 90 days. Is this true?

Treasury Secretary Steven Mnuchin announced that for those individuals who owe $1 million or less in taxes for 2019 the payment deadline has been extended from April 15, 2020 to July 1, 2020. The tax filing deadline has been moved to July15, 2020.  Likewise, corporate filers who owe up to $10 million in taxes will have the same 90 day extension of time for payments.  Tax payments made by July 15th will not incur penalties or interest. 

Is the newly announced SBA loan to provide targeted, low-interest disaster recovery loans to small businesses that have been severely impacted by the situation apply to nonprofits too?

Yes. These SBA loans, which may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact, are available for nonprofits as well. The interest rate for non-profits is 2.75%.

Am I required to pay my employees, if I voluntarily close my business or I am ultimately ordered by the government to do so? 

No; except for possible requirements under any employment agreements, and state mandated paid sick or other leave, as address below, you are not required to pay your employees whether you decide to voluntarily close your office or are ordered by the government. (Q&A provided by Mandelbaum Salsburg attorneys Dennis J. Alessi and Steven I. Adler in their article entitled, “Employment Issues with Emergency Business Closures” Note: this is generic information and is not to be construed as legal advice.


Directory of Phone Numbers, Hotlines & Websites

NJ COVID-19 hotline
1-800-222-1222. If using an out-of-state phone line, call 1-800-962-1253

NJ Economic Development Authority (NJEDA) 

Small Business Administration (SBA)  
Disaster Assistance customer service center: 1-800-659-2955 or email disastercustomerservice@sba.gov

Center for Disease Control and Prevention (CDC) 

NJ Department of Labor and Workforce Development (DOL) 

NJ State Chamber of Commerce  

Meadowlands Regional Chamber of Commerce 

NJ Business Action Center 

New Jersey Business and Industry Association (NJBIA) 

Commerce and Industry Association of NJ (CIANJ) 

NJ Small Business Development Centers (SBDC) 

Morris County Chamber of Commerce

Center for Non-Profits 

New Jersey Manufacturing Extension Program, Inc.  
email hotline: takeaction@njmep.orgCrisis Management / Business Continuity Planning   

Somerset County Business Partnership 

New Jersey Pandemic Relief Fund

South Jersey COVID-19 Response Fund from the Community Foundation of South Jersey

COVID-19 Rapid Response Fund from the Northern New Jersey Community Foundation for non-profit services and programs in Bergen County

Princeton Area Community Foundation COVID-19 Relief & Recovery Fund

OceanFirst Foundation Rapid Response Grants and Good Neighbor Grants, in addition to loosening restrictions of some previously awarded funding

PHL COVID-19 Fund from the United Way of Greater Philadelphia and Southern New Jersey

United Way of Greater Newark Community COVID-19 Fund is taking donations, funding application to be announced

 


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March 27, 2020
In response to the current pandemic, the Families First Coronavirus Response Act (FFCRA or Act) was enacted in order to require certain employers to...