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COVID 19 Update 56

Post: May. 9, 2020

Cuomo: “No Deviation” From Reopening Plan

In answer to a question from a reporter at Friday’s press conference at Marist College, Governor Cuomo said he does not expect to see any deviations from his reopening plan. He indicated that he will not allow additional industries to reopen in earlier phases than already detailed, and the plan that is laid out in New York Forward was final.  the Manufacturing Alliance and New York State Busienss Council have submitted a reopening plan template to New York Forward for review and approval.  that document can be used by manufacturers as a guide to reopening, or the case of essential businesses that are open to continuing operations.  We hope to have approval of the document by Monday.

See a draft of the document

Visit the New York Forward Page

Recording of Thursday’s Reopening Webinar presented by Emergency One is Available Online

Much of what is required in the guidelines was covered in the Council of Industry’s Webinar Thursday presented by EmergencyOne and is available on our COVID-19 Resource Page.

The recording of the webinar is here.

IRS Listens to Manufacturers, Protects Tax Credit Eligibility

The IRS has listened to manufacturers’ concerns and reversed its wrongly issued guidance that would have prevented employers that provide health care benefits for furloughed workers from qualifying for the employee retention tax credit. This is an important development that your NAM advocated.

The updated IRS FAQs on the tax credit are available here

New Council of Industry Podcast:  Mike Oates, President of the Hudson Valley Economic Development Corporation

As the COVID 19 crises unfolds the Council of Industry is using all its resources to keep its members up to date with the latest information and resources to keep their employees safe and their businesses operating. Our podcast is one of those resources and part of those efforts.

In this episode Harold King from the Council of Industry interviews Mike Oates, President and CEO of the Hudson Valley Economic Development Corporation (HVEDC).  Harold and Mike talk about HVEDC’s response the COVID 19 outbreak in the region. They also talk about the impact of the virus and the government lockdown on the regional economy as well as opportunities to grow and strengthen manufacturing post COVID.

Listen Here

Volatile Prices, Disappearing Masks: Inside the Chaotic Gray Market for Coronavirus Gear

The demand for protective gear will increase as states reopen their economies and businesses. By week’s end, 43 states will be doing that at least partially. With little gear coming from the U.S. government, states, hospitals, law enforcement and companies will heighten their hunt to protect employees. The gray market is where many will continue to turn for the goods—mostly made in China—forcing brokers, states and others to reinvent a supply chain on the fly.

Read more in the WSJ

Economy Lost 20.5 Million Jobs in April

The unemployment rate hit 14.7%,.  April’s unemployment rate topped the post-[World War II] record 10.8% but was short of the Great Depression high estimated at 24.9%. The financial crisis peak was 10% in October 2009.

NAM Chief Economist Chad Moutray notes that the manufacturing sector lost 1,330,000 jobs last month.

Read More at CNBC 

Back to Back Council of Industry Webinars Presented by JGS CPAs: 

Payroll Protection Program Loan Forgiveness, Wednesday, May 13, 2020 at 1 pm

Jason T. Giordano, CPA, CVA, MST, managing partner of JGS, CPA will explain the loan forgiveness rules associated with the Paycheck Protection Program

In this webinar we will offer a detailed discussion of the loan forgiveness rules within the Paycheck Protection Program (PPP), one of the most highlighted areas of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The PPP offers financial relief to small businesses through the Small Business Administration (SBA) 7(a) loans. This discussion will include an in depth look at the loan forgiveness rules related to these new loans. Commonly asked questions will be discussed, along with the identification of areas where guidance may still be needed.

Register Here

Tax Credits and Relief Associated with COVID-19, Wednesday, May 13, 2020 at 2 pm

Join Domenick Del Rosso, CPA, MST, partner at JGS, CPA as he explains the tax credits and relief associated with the COVID-19 pandemic.

In response to emerging and unprecedented financial devastation from COVID-19 on March 27, 2020, Congress passed broad economic relief for individuals, tax-exempts organizations and corporations. The CARES Act includes a myriad of tax provisions targeting individuals, corporations, and tax-exempt entities. In this webinar we will discuss certain tax relief under the Act as it pertains to businesses and corporations.

Register Here

Survey: HR Skeptical of Permanent Work-From-Home Shift

The percentage of employers using remote work for salaried employees increased 61 percentage points since the start of 2020, but almost all HR professionals expect work to revert to the office after the coronavirus pandemic subsides, according to a survey by the Society for Human Resource Management and Oxford Economics. The survey reflects responses from mid-April.

Read the full story at SHRM 

Didn’t Get the PPP? Think About the Employee Retention Credit

By far, the most discussed aspect of the CARES Act has been the Paycheck Protection Program (PPP) loans. And with good reason. The PPP loans provide a powerful benefit of up to 2.5 times monthly payroll costs, and the possibility that the entire loan will be forgiven. Sandy Weinberg, and Christopher Migliaccio, from PKF O’Conner Davies write that the Employee Retention Credit (ERC), also introduced under the CARES Act, has received comparatively less press. This was understandable as the Act explicitly states that a business could not obtain both and the ERC, limited to $5,000 per employee, is almost certainly a smaller benefit than the PPP loan.

Read more at PKF O’Conner Davies

Dutchess IDA Looks To Help County Manufacturers Expand Capacity to Produce PPE

The Dutchess County Industrial Development Agency (IDA) will vote to establish a no-fee, fast tracked, COVID-19 Sales and Use Tax Relief Program to help local manufacturers expand capacity and produce much needed personal protection equipment in Dutchess County. The Dutchess County IDA and LDC will meet on Wednesday, May 13 at 8:00 a.m. to consider resolution.