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Small Businesses, the CARES Act & a Diverse Workforce
A Focus on Recovery & Growth
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</h3><h4><i>by <a href=”http://discuss.ilw.com/articles/articles/393519-article-small-businesses-the-cares-act-a-diverse-workforce-a-focus-on-recovery-growth-by-e-keith-uselton-terry-l-olsen-esq#bio”>
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E. Keith Uselton, Terry L. Olsen, Esq.
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<p>
The most economically vulnerable of our <em><u>business </u></em>population
is typically the <em>small business community</em>. Cash (or access to it)
is like oxygen for a business – it can’t survive without it. Thankfully,
the Coronavirus Aid, Relief, and Economic Security (<em>CARES</em>)
<em>
Act has established a process for a life-line for many in the small
business community by providing the following:
</em>
<em></em>
</p>
<p>
<em></em>
</p>
<p>
<em>· </em>
<em>
Paycheck Protection Program (PPP) – this program offers $349 billion in
loans to businesses and nonprofits with no more than 500 employees,
sole proprietors among others.
</em>
<em></em>
</p>
<p>
<em></em>
</p>
<p>
<em>· </em>
<em>
This program is intended to provide relief for millions of small
businesses and help them keep their employees on the payroll or re-hire
them quickly after obtaining their PPP loan.
</em>
<em></em>
</p>
<p>
<em></em>
</p>
<p>
<em>· </em>
<em>The PPP loan can be used for the following through June 30, 2020:</em>
<em></em>
</p>
<p>
<em></em>
</p>
<p>
<em>Ø </em>
<em>Payroll</em>
<em></em>
</p>
<p>
<em>Ø </em>
<em>Health insurance premiums</em>
<em></em>
</p>
<p>
<em>Ø </em>
<em>Rent and mortgage payments</em>
<em></em>
</p>
<p>
<em>Ø </em>
<em>Utilities</em>
<em></em>
</p>
<p>
<em></em>
</p>
<p>
<em>· </em>
<em>
The loans may be eligible for partial or full forgiveness based on the
borrower maintaining employee head count and compensation levels.
Though small businesses can be the most vulnerable due to lack of cash
and capital, they can also be very nimble, recognize and seize
opportunities and can quickly adapt to a “new normal” if they have
liquidity and capital. Millions of small businesses will be depending
on a PPP loan to help them get through the COVID-19 crisis.
</em>
<em></em>
</p>
<p>
<em></em>
</p>
<p>
<em>
<strong>
How long will $349 billion last? Probably not very long.
</strong>
</em>
<em><strong></strong></em>
</p>
<p>
<em></em>
</p>
<p>
<em>
Will additional funding be provided? We sure hope so. It appears many
political leaders
</em>
<em></em>
</p>
<p>
<em>
anticipate the need. However, additional economic stimulus funding
targeting is uncertain at this time. This added uncertainty makes it
all the more important to submit your PPP application ASAP.
</em>
</p>
<p>
<strong>
As per U.S. Bureau of Labor Statistics (2018), 28.2 million foreign
born individuals are in the U.S. workforce. 17% of the U.S. workforce
is foreign born, or more.
</strong>
</p>
<p>
<em><u>CARES</u></em>
<u>
<em>Act</em>
—Employers wanting their businesses to maintain, recover, and possibly
grow must take into account their workface compliance issues, and
maintaining work status during layoffs
</u>
—
</p>
<p>
1) Can the employees qualify for unemployment? Not violate their work
status? Not become subject to public charge rules?
</p>
<p>
2) Can a family household with a member on the return without a work
status, or social security number obtain rebate checks?
</p>
<p>
3) Can the family members be tested for COVID-19 without cost?
</p>
<p>
<u>
Considering whether or not to use an EIDL loan OR a PPP loan OR both,
and beyond
</u>
</p>
<p>
<u>
just loan forgiveness, employers with foreign born workers must
consider if layoffs/terminations will cause the following
</u>
:
</p>
<p>
1) Termination of nonimmigrant worker status;
</p>
<p>
2) Making employees dependent on government benefits, and jeopardizing
immigration processes; and
</p>
<p>
3) Creating employment compliance violations which can’t be corrected when
employers need to rehire again.
</p>
<p>
<u>
Possible results if employers don’t take into account all workforce
foreign born employee
</u>
</p>
<p>
<u>& family care</u>
:
</p>
<p>
1) Critical unemployment assistance not available;
</p>
<p>
2) Go untested, and untreated for COVID-19; and
</p>
<p>
3) Left out of future employment & ownership opportunities.
</p>
<p>
<u>
Rebate checks not for everyone—the following eligible individuals are
not be eligible
</u>
</p>
<p>
<u>for a rebate</u>
:
</p>
<p>
1) Individuals and their spouses and dependents who did not provide a valid
identification number on their tax return;
</p>
<p>
2) Nonresident aliens;
</p>
<p>
3) Individuals who are claimed as a dependent on another person’s tax
return;
</p>
<p>
4) As well as estates and trusts.
</p>
<p>
<u>US tax compliance for certain foreign-born individuals</u>
:
</p>
<p>
1) Do foreign-born individuals need to file 2019 US tax returns as soon as
possible to help mitigate issues for the worker and the employer?
</p>
<p>
2) Do these individuals have a Foreign Bank Account Report (FBAR) filing
requirement?
</p>
<p>
3) Do these individuals need to comply with the Foreign Account Tax
Compliance Act (FATCA)?
</p>
<p>
4) Do they need to file Form 8843?
</p>
<p>
5) What about state filing requirements?
</p>
<p>This post appeared on <a href=”https://www.niskanencenter.org/let-foreign-physicians-help-how-states-can-prepare-now-for-covid-19-peaks/” target=”_blank”>the Niskanen Center</a>. Reprinted with permission.</p>
<hr/><h4>
<a name=”bio”></a>
About The Author<br/>
</h4>
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<p>
<a><b>E. Keith Uselton,</b></a> CPA/ABV, works in the Nashville office of Uselton, Clay & Bright, and focuses his practice on businesses, individuals, estates, and trust taxes as well as business valuation. He advises businesses and individuals on federal and state tax matters as well as international tax compliance filing issues. He works with attorneys and wealth managers in tax planning and valuation matters. He also works with families and businesses in estate and business succession planning to help facilitate their goals in a tax efficient manner.
Keith has 36 years of taxation experience and is a Certified Public Accountant (CPA) and is Accredited in Business Valuation (ABV) through the American Institute of Certified Public Accountants (AICPA). He has served on various committees with the Tennessee Society of CPAs and has been a speaker for Lorman Educational Services as well various civic organizations.
</p>
<p>
<a><b>Terry L. Olsen, Esq. </b></a>practices Immigration & Nationality Law, and International Law. Mr. Olsen has served, and continues to serve the international community, and his clients’ interests in the United States, and internationally. He is the Chair of the International Law Section of the Tennessee Bar Association, and is former Chair of the Immigration Law Section of the Tennessee Bar Association—having served as Chair of the TBA’s Immigration Section for approximately five terms since 2009. He is also Vice Chair of the Tax Law Section of the Tennessee Bar Association.
Mr. Olsen has served as Chair of the Chattanooga Branch of the British American Business Group from 2012-2014, and he served as Chair of the World Trade Society of Chattanooga from 2004-2008. Mr. Olsen has served as adjunct faculty in the Executive MBA Program, and Aspire Program at Bryan College. He has given immigration law seminars at the following universities: University of Tennessee at Chattanooga, University of Tennessee at Knoxville, Southern Adventist University, Bryan College, Dalton State College, Oakwood University, the University of Alabama at Huntsville, Sewanee: The University of the South, National Taiwan University, and National Chung Hsing University.
</p>
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