Employers Entitled to Tax Credits for Providing Paid Leave to Employees for Time Off for COVID Vax

The Internal Revenue Service advises that the American Rescue Plan Act of 2021 (ARP) allows small and midsize employers, and certain governmental employers, to claim refundable tax credits that reimburse them for the cost of providing paid sick and family leave to their employees due to COVID-19, including leave taken by employees to receive or recover…

Writing off Expenses Paid for with PPP Money & a New DoL Decision

By Littler Mendelson

The Consolidated Appropriations Act of 2021 contains an important aspect of that legislation that many of you have been clamoring for: companies now may write off expenses paid for with PPP money.  This change was buried in section 276(a) of the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act (which is part of the stimulus bill). As you likely know, the Internal Revenue Service (IRS) refused to adopt this position absent express language to this effect in the statute. There was bipartisan support for this new language, but it never seemed to make it into any of the draft stimulus bills. Further cementing this victory, the IRS has announced that an official change in its position on this issue.  We know this is a welcome, albeit belated, result.

Also in the news and relevant to this industry is the DOL’s recent action taken to finalize the independent contractor rule.  This rule impacts traditional registries and the online virtual marketplace platforms that facilitate caregiving services as it provides a new paradigm for analyzing whether a caregiver is truly an independent contractor or employee (focusing on two key factors – control and opportunity for profit or loss – instead of weighing seven factors).  The rule is supposed to go into effect March 8, 2021, but President Joseph Biden has announced his intent to issue a memorandum on his first day in office freezing the effective date of any legislation that is not yet in effect. He also has expressed an interest in derailing the rule entirely. If the rule were to become effective, the biggest question would be its impact on the Field Assistance Bulletin No. 2018-4, which provided guidance on when registries are employers under federal wage and hour law. This is because the new rule would replace any inconsistent previous interpretation of independent contractor status.  So stay tuned for more developments on this front!

IRS FAQs on Taxation of Provider Relief and Coronavirus Relief Funds

The Internal Revenue Service has issued a brief Frequently Asked Questions memo on the taxation of payments from provider relief and coronavirus relief funds, which generally don’t give the response that many had hoped for. These FAQs may raise a number of issues for providers and others who receive money under these programs. According to…

New IRS Guidance Eliminates all Tax Benefits of PPP Loan Forgiveness

A special report from Ted Cuppett of The Health Group The IRS has released guidance (Notice 2020-32) to explain that a taxpayer that receives a loan through the Paycheck Protection Program (PPP) is not permitted to deduct expenses that are normally deductible under the Code, to the extent the expenses were reimbursed by a PPP…

Internal Revenue Service Stepping Up Enforcement of Affordable Care Act

By Guest Writer Gregg Kasubuchi, Vice President at First Capitol Mr. Kasabuchi will speak further on this topic at the Home Care and Hospice Conference & Expo in Seattle this October! Expect the Internal Revenue Service to become more assertive in efforts to enforce the Affordable Care Act in the summer of 2019. IRS staff…

The IRS Is Issuing New ACA Penalties and Home Health Faces a Special Danger

— Guest article written Gary Davis | VP Marketing & Communications at First Capitol Consulting The Internal Revenue Service (IRS) is now issuing a new set of financial penalties as part of the agency’s ongoing enforcement of the Affordable Care Act and home health operators are particularly vulnerable to these penalties. In fact, some home health…