Corporate Transparency Act Resources

Welcome to the Weintraub Resources section. Here, you can find our Blogs, Videos, and Podcasts, in which Weintraub attorneys regularly provide insights and updates on legal developments. You can also find upcoming Weintraub Events, as well as firm and client News.

Webinar: Insurance Coverage for COVID-19 Losses – Five Things to Know and Do

  • When: May 6, 2020

On May 6, 2020, Weintraub attorneys Charles Post and James Kachmar held a straightforward discussion of insurance coverage issues and potential insurance company responses to business interruption and other claims arising from COVID-19. This program discussed the peculiarities of common policy language and coverage issues; provided a preview of possible responses from insurance companies to such claims; and explained pending legislation and court cases regarding insurance issues due to COVID-19. The webinar was focused on educating small businesses in evaluating, preparing, and possibly resolving claims with their insurance companies for COVID-19 losses.

A recording of this webinar can be viewed on the Weintraub Tobin YouTube page. Please keep in mind that this is a fluid situation and information is constantly being updated. We recommend that you check with your professional advisors to make sure you have the most current information.

Webinar: Employment Issues Upon Re-Entry to the Workplace

  • When: Apr 30, 2020

The COVID-19 pandemic has changed the workplace landscape.  While the anticipated re-opening of the economy is on the horizon, employers must be aware of a number of employment issues when employees begin to re-enter the workplace.  This webinar addresses the most common questions employers are currently asking about what is and is not required, allowed, or recommended when bringing employees back to work.  We will provide an overview of the following topics during this free webinar:

  • Conflicting Shelter Orders – Which one applies and which order do we follow to bring employees back to work?
  • What can an employer do if employees refuse to return to the worksite?
  • May a furloughed employee choose to stay on unemployment instead of returning to work?
  • Return-to-Work Social Distancing Policies and Protocols – Are they required or recommended?
  • What are the OSHA and CDC guidelines for maintaining workplace safety and reducing the spread of COVID-19?
  • What About Employee Privacy – Can an employer obtain medical information or screen employees before they enter the worksite?
  • What are the EEOC and DFEH guidelines regarding reasonable accommodations for employees who may be at risk if they return to the worksite?
  • Do OSHA reporting and workers’ compensation benefits apply if an employee contracts COVID-19 at work?
  • Are employees still eligible to take emergency paid sick leave or emergency FMLA leave under the FFCRA once the shelter orders are lifted?
  • What sick pay and statutory leave benefits are available to laid off employees who are rehired?
  • What policies should employers review and update based on the impact of COVID-19?

This webinar was presented live on April 30, 2020.  You can view a recording of the webinar on our YouTube page.  Please keep in mind that this is a fluid situation and information is constantly being updated. We recommend that you check with your professional advisors to make sure you have the most current information.

EEOC Updates its Guidance & FAQs Regarding COVID-19 and the ADA, the Rehabilitation Act, and Other EEO Laws  

Published: April 22, 2020

by Lizbeth (Beth) V. West
The Labor & Employment Law Blog

The EEOC has updated its COVID-19 Guidance by adding a number of new FAQs to address issues related to the anticipated re-entry into the workplace.  The new FAQs discuss things like: an employer’s right to screen employees before entering the workplace to avoid a “direct threat” to the health and safety of employees; documentation to support an employee’s request for an accommodation; and “undue hardship” considerations when denying an accommodation based on the impact of COVID-19 on the business.  Below is a list of the new FAQs.  The complete EEOC’s Guidance and FAQs can be found here.

D.5. During the pandemic, if an employee requests an accommodation for a medical condition either at home or in the workplace, may an employer still request information to determine if the condition is a disability? (4/17/20)

Yes, if it is not obvious or already known, an employer may ask questions or request medical documentation to determine whether the employee has a “disability” as defined by the ADA (a physical or mental impairment that substantially limits a major life activity, or a history of a substantially limiting impairment).

4th UPDATE: DOL Again Updates Question & Answers Page for FFCRA

Published: April 20, 2020

by James Kachmar
The Labor & Employment Law Blog

We have previously written about the US Department of Labor issuing a Question & Answers webpage, and subsequently updated it, to address numerous issues arising out of the passage of the Families First Coronavirus Response Act (“FFCRA”). (Click here, here and here.) On April 6, 2020, the DOL again updated the “Questions and Answers” webpage, adding 9 new questions and answers (##80-88) that largely clarify prior guidance from the Department. Here is a summary of the issues addressed by the DOL’s fourth update to the Q&A page:

For Employers:

  • Clarifying the manner for calculating the number of hours of paid sick leave and expanded family and medical leave due an employee who works irregular hours. (##80-81)
  • Providing a detailed explanation as to how to compute an employee’s average rate of pay for purposes of FFCRA, including those employees on a fixed salary each workweek. (##82-83)
  • Allowing employers to use rounding when computing the number of hours of sick leave due provided that employers do so consistently among all employees and in accordance with typical time increments (i.e. if employer general uses quarter-hour increments, employer may use quarter-hour increments for purposes of rounding here). (#84).
  • Stating that an employer must only use one six-month period of time (calculated from when the employee first takes FFCRA leave) for determining the regular rate of pay rather than doing a six-month calculation each time an employee takes FFCRA leave if it is intermittent. (#85)
  • Explaining the interplay between paid sick leave under the FFCRA with employer-provided leave plans, specifically whether an employer can require an employee to take employer-provided leave before taking FFCRA leave. (#86)

For Employees:

  • Clarifies that a “shelter in place” or “stay home” order from a federal, state or local agencies qualifies as a quarantine or isolation order for purposes of FFCRA leave, provided the employer has work for the employee and the “shelter in place” or “stay home” order prevents the employee from performing the work, either in person or via telework. (#87)
  • Explains that an employee is entitled to the full amount of unpaid leave due to them under the FFCRA, instead of just the federal minimum wage of $7.25 per hour, if the Department is required to bring an enforcement action on their behalf against their employer for violating the FFCRA. (#88)

California employers should continue to monitor our blog for future updates concerning the FFCRA and other employment developments as a result of the COVID-19 pandemic. We also advise employers to seek legal advice to determine whether the FFCRA applies to their business, and if so, what steps to take to ensure compliance.

Coronavirus-Related Tax Relief for the Real Estate and Agricultural Industries

Published: April 13, 2020

Through various mechanisms, the federal government has issued several forms of tax relief to real estate and agricultural businesses impacted by the current COVID-19 pandemic. The majority of the tax relief was included in the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). However, the Internal Revenue Service has also issued guidance providing additional relief. This discussion is intended to serve as a high-level summary for professionals in the real estate and agricultural industries seeking tax relief.

a. Net Operating Loss Carrybacks. When a taxpayer’s total deductions exceed its gross income for a given year, the taxpayer has a net operating loss (or NOL). Taxpayers who incurred NOLs in tax years 2018 and 2019 were not permitted to carryback those losses to generate a refund of taxes paid during previous tax years. Now, under the CARES Act, taxpayers will have a 5-year carryback of NOLs incurred in 2018, 2019 or 2020. Accordingly, if your business generated an NOL in 2018 or 2019 and had earned taxable income in prior years, you may be able to amend your tax returns and receive an immediate tax refund. Similarly, any 2020 NOL can be used to generate a refund of prior year taxes when tax returns are filed next year. Note that, by separate guidance, the IRS is permitting amended returns for certain partnerships which were previously precluded from filing amended returns.

b. Retail Glitch / Qualified Improvement Property Fix. “Qualified Improvement Property” is essentially any improvement made to an existing non-residential building. The 2017 Tax Cuts and Jobs Act (“TCJA”) inadvertently eliminated bonus depreciation for Qualified Improvement Property. To remedy this, the CARES Act includes a technical correction reinstating the bonus depreciation deduction for taxpayers effective as of tax year 2018. Taxpayers can immediately amend their 2018 and/or file 2019 tax returns and claim these additional deductions to produce a tax refund.

c. Modification of Limitation on Business Interest. Current tax law limits taxpayers’ net interest expense deduction to 30% of adjusted taxable income. “Electing real property trade or businesses” (“ERTBs”) are exempt from this 30% limitation. However, electing ERTB status decreases the amount of depreciation available to such business for income tax purposes.

The CARES Act modified the 30% limitation for tax years 2019 and 2020. For partnerships, the 30% limitation continues to apply for the 2019 tax year. However, partners of the partnership may deduct 50% of the 2019 disallowed excess business interest expense on their 2020 returns without regard to the applicable percentage limitations. Additionally, the partnership’s 2020 limitation is increased from 30% of adjusted taxable income to 50% of adjusted taxable income. For taxpayers other than partnerships, the 30% limitation is increased to 50% for tax years 2019 and 2020.

Additionally, the IRS has issued guidance allowing businesses to withdraw a previous election to be treated as a real property trade or business, thereby allowing the business to potentially optimize the amount of interest expense deductions and depreciation deductions.

d. Extensions of Time-Sensitive Actions (Section 1031 Exchanges and Qualified Opportunity Zones). As you may be aware, the deadline to file and pay 2019 federal income taxes has been extended to July 15, 2020. Additionally, in recent guidance, the IRS is permitting certain taxpayers engaged in active section 1031 exchanges to extend the 45-day identification period or the 180-day period to complete the exchange until July 15, 2020. If you are engaged in an exchange and either the 45-day period or the 180-day period falls between April 1 and July 14, 2020, the applicable period is automatically extended to July 15, 2020.

Similarly, the Qualified Opportunity Zone tax incentive program permits taxpayers to reinvest capital gains within 180 days of realizing such gains into a Qualified Opportunity Fund and thereby defer recognition of the realized gains. If your 180-day investment period falls between April 1, 2020 and July 14, 2020, you have until July 15, 2020, to invest any realized capital gains into a Qualified Opportunity Fund and realize the full benefits of the Qualified Opportunity Zone tax incentive program.

e. Losses incurred by Owners of Pass-through Entities. The TCJA imposed limits on the amount of business losses non-corporate taxpayers could use to offset non-business income for tax years starting in 2018. The CARES Act has withdrawn these limits, allowing owners of businesses conducted through pass-through entities generating large losses to offset unlimited amounts of personal non-business income through 2020. Taxpayers who incurred significant business losses in 2018 or 2019 which exceeded the permitted limits should file amended returns to claim refunds. This provision may be of particular importance to individuals with large real estate portfolios.

f. Employee Retention Tax Credits. Eligible employers will receive a refundable credit against payroll taxes. To be eligible, the employer must have (i) had its business operations fully or partially suspended by governmental order or (ii) suffered a 50% reduction in year-over-year gross receipts (comparing calendar quarters). The credit can be as much as $5,000 per employee. This credit cannot be used by certain SBA loan recipients.

g. Deferral of Employer’s Share of Payroll Taxes. Employers and self-employed individuals will be permitted to defer payment of the employer share of social security taxes for the remainder of the year. One-half of deferred payroll taxes must be paid by the end of 2021 and the remainder must be paid by the end of 2022. Recipients of loan forgiveness under the SBA Paycheck Protection Program will not be permitted to defer payment of payroll taxes.

Patent, Trademark, and Copyright Deadlines Extended Due to COVID-19

Published: April 10, 2020

by Audrey A. Millemann
The IP Law Blog

On March 31, 2020, the U.S. Patent and Trademark Office announced that, pursuant to the Coronavirus Aid, Relief, and Economic Security Act, certain deadlines for patent and trademark applications would be extended.  The CARES Act authorizes the PTO to toll, waive, or modify any patent or trademark deadline in effect during the COVID-19 emergency.  The announcements were made in written Notices of Waiver, one each for patents and trademarks, posted on the PTO’s website.

In order to exercise the power under the CARES Act, the PTO Director must determine that the COVID-19 pandemic materially affects the functioning of the PTO; prejudices the rights of patent applicants, trademark registrants, or patent/trademark owners; or prevents patent applicants, trademark registrants, or patent/trademark owners from making a filing or paying a fee in the PTO.

The President declared a national emergency on March 13, 2020.  The PTO Director has determined that the emergency has prejudiced the rights of applicants, registrants, and owners, and has prevented applicants,  registrants, and owners from making filings and paying fees in the PTO.  The Director has found that “the spread of the virus has significantly disrupted the operations of numerous businesses, law firms, and inventors.”  The Director specifically noted that small businesses and independent inventors are especially likely to face difficulties.

The Director has extended for 30 days certain patent deadlines that were due between March 27, 2020 and April 30, 2020.  The deadlines include the due dates for replying to a PTO notice or office action; paying a patent issue fee or maintenance fee; filing a trademark statement of use or affidavit of use; filing a notice of opposition; and filing a notice of appeal, appeal brief, or reply brief.

In order to obtain an extension under these provisions, the applicant/registrant/owner must file a statement that the delay was due to the COVID-19 pandemic.  The statement may properly be submitted if the applicant/registrant/owner, attorney, or other person associated with the filing was personally affected by the COVID-19 pandemic, such as because of office closure, inaccessibility of documents, cash flow problems, or illness.

Applicants/registrants/owners may also request that the PTO, PTAB, or TTAB grant extensions of other deadlines that are not covered in the Notices of Waiver.

At this time, the PTO’s offices are closed to the public, but are open for the filing of documents and payment of fees, and the examiners are continuing to work.  Filings and fee payments maybe made as usual, by the PTO’s electronic filing system, U.S. mail, fax, or hand delivery.   However, the Director has noted that these practices could change.

The U.S. Copyright Office has also similarly extended deadlines under the same authority.

It is possible that the PTO may further extend deadlines beyond May 30.  Any further extensions are expected to be announced on the PTO website.

3rd UPDATE: DOL Again Updates Questions & Answers Page for FFCRA

Published: April 3, 2020

by James Kachmar
The Labor & Employment Law Blog

As previously advised, the US Department of Labor has issued a Question & Answers webpage, and subsequently updated it, to address numerous issues arising out of the passage of the Families First Coronavirus Response Act (“FFCRA”. (Click here and here.) The DOL updated the “Questions and Answers” webpage again today, adding 20 new questions and answers (##60-79). These updated Questions and Answers primarily address issues for employees regarding FFCRA leave but include some questions directed towards employers such as computing leave pay for seasonal workers with irregular schedules, employee counts for staffing agencies and the DOL 30-day stay of enforcement actions for FFCRA violations.

DOL’s Informational Webinar re FFCRA Compliance Goes Live

Published: April 3, 2020

by James Kachmar
The Labor & Employment Law Blog

Earlier this week, the U.S. Department of Labor announced that it would be posting an informational webinar regarding compliance issues with the recently-enacted Families First Coronavirus Response Act (“FFCRA”). That webinar, which provides information regarding the FFCRA for both employers and employees went live today and can be accessed at:  https://dolwhd.cosocloud.com/pawkgwfawza0/?proto=true. The DOL’s Wage & Hour Division also distributed Power Point slides to accompany the webinar, which can be accessed here.

California employers should continue to monitor our blog for future updates concerning the FFCRA and other employment developments as a result of the COVID-19 pandemic. We also remind employers that they should seek legal advice to determine whether the FFCRA applies to their business, and if so, what steps to take to ensure compliance.

The IRS FAQs Provide Guidance on Employee Documentation/Information to Support FFCRA Leave

Published: April 2, 2020

by Lizbeth (Beth) V. West
The Labor & Employment Law Blog

n March 31, 2020, the IRS issued 66 FAQs providing guidance to employers in connection with the payment of, and tax credits for, emergency paid sick leave (E-PSL) and emergency FMLA leave (E-FMLA) under the Families First Coronavirus Response Act (“FFCRA”).  Among other things, the FAQs answered a very important question that the DOL didn’t (instead, in its FAQ 15, the DOL essentially deferred to the IRS).  The important question is: what documentation or information can employers require employees to submit to support their request for E-PSL or E-FMLA?

IRS FAQ No. 44 states expressly:

  1. What information should an Eligible Employer receive from an employee and maintain to substantiate eligibility for the sick leave or family leave credits?

An Eligible Employer will substantiate eligibility for the sick leave or family leave credits if the employer receives a written request for such leave from the employee in which the employee provides:

  1. The employee’s name;
  2. The date or dates for which leave is requested;
  3. A statement of the COVID-19 related reason the employee is requesting leave and written support for such reason; and
  4. A statement that the employee is unable to work, including by means of telework, for such reason.

In the case of a leave request based on a quarantine order or self-quarantine advice, the statement from the employee should include the name of the governmental entity ordering quarantine or the name of the health care professional advising self-quarantine, and, if the person subject to quarantine or advised to self-quarantine is not the employee, that person’s name and relation to the employee.

In the case of a leave request based on a school closing or child care provider unavailability, the statement from the employee should include the name and age of the child (or children) to be cared for, the name of the school that has closed or place of care that is unavailable, and a representation that no other person will be providing care for the child during the period for which the employee is receiving family medical leave and, with respect to the employee’s inability to work or telework because of a need to provide care for a child older than fourteen during daylight hours, a statement that special circumstances exist requiring the employee to provide care.

The IRS FAQs provide other useful information about determining the amount of the tax credit for qualified sick leave wages; determining the amount of allocable qualified health plan expenses; how to claim the credits; periods of time for which credits are available; and more.  You can read the full IRS FAQs here.

The Labor and Employment attorneys as Weintraub Tobin continue to wish you and your families good health during these difficult times.  Please reach out to any of us if we can assist you with your employment law needs.