SS+D COVID-19 Response Team: Federal and State Update April 13, 2020

FEDERAL – IRS PROVIDES GUIDANCE ON DEFERRAL OF PAYROLL TAX PAYMENTS
Over the weekend, the IRS issued new guidance on the deferral of payroll tax payments authorized by the CARES Act. Under the CARES Act, employers are allowed to defer the deposit and payment of the employer’s share of social security tax. The IRS’s guidance states, among other things, that:

• The deferral period begins on March 27, 2020, and ends on December 31, 2020
• The Employer’s Quarterly Federal Tax Return form (Form 941) will be revised for the second quarter of 2020, and that additional information will be provided in the near future on how employers should reflect the deferred deposits and payments for the first quarter of 2020
• 50% of the deferred amounts must be deposited by December 31, 2021, and the balance must be deposited by December 31,2022
• Self-employed individuals are eligible to defer payment of self-employment tax on net earnings.

For more information about the deferral of payroll tax, consult the IRS’s guidance at: https://www.irs.gov/newsroom/deferral-of-employment-tax-deposits-and-payments-through-december-31-2020

STATE — OHIO DEPARTMENT OF HEALTH ESTABLISHES DISPUTE RESOLUTION COMMISSION FOR ESSENTIAL AND NONESSENTIAL BUSINESSES
The Ohio Department of Health (“ODH”) created a Dispute Resolution Commission to evaluate and render guidance where two local health departments have come to opposite conclusions for similar businesses on what is or is not an “essential business.” The Commission will help provide uniformity when, for instance, a chain store is operating as an essential business in one jurisdiction, but not another. A conflict may be submitted to the ODH by either a local health department or the entity or person subject to the determination. All decisions by the Commission are final.

If you need assistance in determining whether your business is “essential,” please contact us. More information about the Dispute Resolution Commission can be found at: https://coronavirus.ohio.gov.

ABOUT THE SS+D COVID-19 RESPONSE TEAM
The SS+D COVID-19 Response Team was formed to provide clients, colleagues, and friends of the Firm updates for the foreseeable future on COVID-19 issues facing businesses, executives, and employees. Please let us know if there are any items/issues you would like for us to track or summarize.