When employers make payments to employees under the new emergency paid leave provisions of legislation enacted to address the COVID-19 crisis, they will not take out deductions for social security, but they will take out all other normal deduction – federal and state income tax, Medicare, and contributions North Carolina state and local government employee retirement systems. This blog post explains why. At the conclusion of the blog post are a series of frequently asked questions and answers about FFCRA emergency paid leave and the social security tax exemption.

An ever-increasing number of North Carolina cities and counties are imposing a combination of emergency restrictions and prohibitions under local state of emergency declarations referred to as “shelter in place” (sometimes called “stay at home”) to keep the COVID-19 virus from spreading.

An ever-increasing number of North Carolina cities and counties are imposing a combination of emergency restrictions and prohibitions under local state of emergency declarations referred to as “shelter in place” (sometimes called “stay at home”) to keep the COVID-19 virus from spreading.

Local tax officials from across the state continue raise important questions about the pandemic.  I don’t have perfect answers to all of those questions, but I’ll do my best to respond to many of them in today’s post.  Please also see my earlier post on pandemic-related tax questions.

Local tax officials from across the state continue raise important questions about the pandemic.  I don’t have perfect answers to all of those questions, but I’ll do my best to respond to many of them in today’s post.  Please also see my earlier post on pandemic-related tax questions.

The COVID-19 public health crisis is giving rise to an unprecedented economic crisis. Economic activity across the nation has slowed considerably, and many small businesses—which were operating successfully only one month ago—are now struggling to survive. As their bills pile up but no revenue comes in, some businesses will run out of cash and be forced to shut down permanently. Business closures on a vast scale would likely inhibit a recovery for years after the current crisis subsides.

The COVID-19 public health crisis is giving rise to an unprecedented economic crisis. Economic activity across the nation has slowed considerably, and many small businesses—which were operating successfully only one month ago—are now struggling to survive. As their bills pile up but no revenue comes in, some businesses will run out of cash and be forced to shut down permanently. Business closures on a vast scale would likely inhibit a recovery for years after the current crisis subsides.

On March 18, 2020, Congress passed and the President signed into law the Families First Coronavirus Response Act (the “Families First Act”). The Families First Act is actually a compilation of a number of different acts with different purposes, all sharing the goal of providing relief to those who have been or will be adversely affected economically by the COVID-19 pandemic.

On March 18, 2020, Congress passed and the President signed into law the Families First Coronavirus Response Act (the “Families First Act”). The Families First Act is actually a compilation of a number of different acts with different purposes, all sharing the goal of providing relief to those who have been or will be adversely affected economically by the COVID-19 pandemic.

Economic activity can be disrupted by any number of unanticipated emergencies, ranging from natural disasters to virus outbreaks like COVID-19. When these events threaten the survival of small businesses, the owners may turn to government for assistance. One legal and effective way for a government to assist a small business with weathering a crisis is by providing an emergency loan. The loan allows the business to maintain operations when cash flow is severely constrained due to disruptions in demand. Loans are a common tool in these situations.