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As we continue to experience the effects of the COVID-19 pandemic, government agencies are passing laws to help businesses deal with the impact of the sudden economic slowdown.　 In this email, we summarize some of the major developments and relief opportunities you should be aware of.　 If you’re located outside of Iowa, please note that many other states are offering similar relief efforts as Iowa.　 Additional developments are sure to transpire, including the $2 trillion stimulus/relief package Congress is currently working on, but here is what we know as of today:

Required Sick Leave Pay and Corresponding Tax Credits (see the attached for more details)

• Enacted as part of the Families First Coronavirus Response Act on March 18
• Certain employers are required to pay sick leave to certain employees taking leave due to COVID-19
• Payroll tax credits are available to reimburse the employer for 100% of the sick leave paid
• Tax credits also available to self-employed individuals using the same benefit limits
• Provisions go into effect on April 2 and run through December 31, 2020

Iowa Payroll Tax Withholding and Sales Tax

• Extension of payroll tax withholding deposit due between March 15 – March 25 to April 10 for semi-weekly depositors 

           https://tax.iowa.gov/iowa-extend-income-tax-withholding-deposit-due-date

•  Possible deferral of sales tax and payroll tax withholding (application required by March 31) 

          https://www.iowaeconomicdevelopment.com/programDetails?pid=136&ppid=26

Iowa Unemployment Tax and Claims

• First quarter tax due April 30 can be paid July 31 without being assessed penalties or interest. (See March 23 press release)
•                      https://www.iowaworkforcedevelopment.gov/
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• FAQ’s for Iowa employers related to COVID-19 (including the fact that employers’ accounts will not be charged for COVID-19 related unemployment claims); [the link may only open in Chrome]

              https://www.iowaworkforcedevelopment.gov/sites/search.iowaworkforcedevelopment.gov/files/content-files/Employer%20COVID-19%20QA.pdf

Iowa Small Business Relief Program

• Grants ranging from $5,000 - $25,000 may be available for Iowa employers with between 2-25 employees prior to March 17 (application required by March 31)

  https://www.iowaeconomicdevelopment.com/programDetails?pid=136&ppid=26

Small Business Administration (SBA) Economic Injury Disaster Loan Program

• Low interest working capital loans of up to $2 million may be available to small businesses severely impacted by COVID-19

             https://www.sba.gov/disaster-assistance/coronavirus-covid-19

As circumstances around COVID-19 progresses, relief efforts will continue to change; accordingly, the information and guidance provided in this email is subject to change.　 We will attempt to inform you of additional guidance as it becomes available. 　Our team is available to answer questions and provide additional information and assistance, with the understanding that it is difficult to stay completely informed of all the changes as this unprecedented situation continues to evolve.