President Trump Signs Stimulus Package Overview
December 29, 2020
President Trump Signs Stimulus Package, Overview

Recently, President Trump signed into law the new COVID-19 fiscal relief package. The package and its 5,000 plus pages are clearly too lengthy to go through in this format, but below are some bullets providing a 30,000-foot overview of the key provisions of the law and the areas affected:


Unemployment

  • Includes requirement for applicants to provide documentation of employment (not just self-certification as is currently the case) and requires states to verify applicant identity. Also includes Return-to-Work reporting requirements states to have a mechanism for employers to report when someone turns down a job and notifying claimants of the requirement to accept suitable work.
  • Additional federal $300 per week add-on from Dec. 26 through April 5, with an application deadline of March 14.
  • Extends federal funding of 50% of the cost for reimbursable employers until March 14. 
  • Extends and phases out Pandemic Unemployment Assistance (PUA), a temporary federal program covering self-employed and gig workers, to April 5, with an application deadline of March 14.
  • Extends and phases out Pandemic Emergency Unemployment Compensation (PEUC), which provides additional weeks when state unemployment runs out, to April 5.


Stimulus Checks

  • $600 Stimulus Checks/Payments per eligible individual, including dependent children.
  • Stimulus Checks begins to phase out for individuals with Adjusted Gross Income (AGI) of $75,000, $112,500 for head of household, and $150,000 for married filing jointly.
  • Ineligible individuals are nonresident aliens and adult dependents.
  • Retroactively fixes the “mixed status” issue from CARES where a resident is married to a nonresident alien. 


Paid Leave:

Families First Coronavirus Response Act (FFCRA) tax credits for paid leave are extended through March 31, 2021. However, the mandate to provide paid leave is not extended.

  • Allows self-employed individuals to use the prior year’s earnings for determining paid leave amount COVID Tax Provisions.
  • New York State’s Quarantine Leave Law, which requires that New York Employers provide job-protected sick leave to employees who are subject to a mandatory or precautionary order of quarantine or isolation, does NOT expire at the end of the year.
  • Employers should still consider the DOL’s past guidance on the FFCRA while determining how to comply with the new legislation until additional information is released. Additionally, it is critical that employers update their existing FFCRA leave forms to take into consideration the changes. Since employees are not eligible to receive more leave than was provided through the FFCRA, employers must ensure they keep accurate records to reflect leave provided for all employees.


Support for Small Business and Farmers


 Payroll Protection Program Modifications: additional $284.45 billion in funding

  • Extends covered period through March 31, 2021.
  • Clarifies that business expenses paid for with forgiven PPP funds remain deductible.
  • Simplifies the Loan forgiveness process for borrowers with PPP loans of $150,000 or less. 
  • Expands the forgivable expenses to include supplier costs and investments in facility modifications and personal protective equipment required to operate safely.
  • Enhances borrower flexibility by allowing borrowers to select their loan forgiveness covered period between 8 weeks and 24 weeks.
  • Allows PPP borrowers to include additional group insurance payments when calculating their PPP payroll costs. Covering insurance plans such as vision, dental, disability and life insurance.
  • Establishes the loan amount calculation for farmers and ranchers to align more accurately with recent years’ income.
  • Expands PPP eligibility for certain 501(c)(6) nonprofits and Destination Marketing Organizations with 300 or fewer employees that do not receive more than 15% of their revenue from lobbying.
  • Allows forgiveness for PPP loans and Economic Injury Disaster Loans (EIDL), emergency advance grants, preventing small business owners from being left with unexpected PPP loan balances.


Second round of PPP for businesses with 300 or fewer employees and a 25% revenue loss.

  • Max loan of 2.5X average monthly payroll up to $2 million.
  • Accommodations and Food Services may receive a loan up to 3.5X average monthly payroll.

 

Economic Injury Disaster Loans:

Additional $20 billion for the Small Business Administration’s (SBA’s) Economic Injury Disaster Loan (EIDL) advance program

 

Agriculture ($13 billion)

  • $1.5B to purchase food and agriculture products and distribute to Non-Governmental Organizations (NGOs).
  • Allows United States Department of Agriculture (USDA) to carry out a dairy recourse loan program to make purchases of dairy products from processors, packagers, merchants, marketers, wholesalers, and distributors.
  • $100M for Specialty Crop Block Grants.
  • Supports supplemental Dairy Margin Coverage support. Includes $400M to support dairy donations to non-profit entities like food banks.


Employee Retention Tax Credit expanded and extended through June 30, 2021

  • Credit rate increased from 50% to 70% of qualified wages.
  • Increases the limit on per-employee creditable wages from $10,000 for the year to $10,000 for each quarter.
  • Eligibility expansions
  • Reduction in the required year-over-year gross receipts decline from 50% to 20%, including a safe harbor allowing employers to use prior quarter gross receipts to determine eligibility.
  • Increase in the 100-employee delineation for determining the relevant qualified wage base to employers with 500 or fewer employees.
  • Allows certain public instrumentalities to claim the credit.
  • Removes the 30-day wage limitation, allowing employers to, for example, claim the credit for bonus pay to essential workers; Allows businesses with 500 or fewer employees to advance the credit at any point during the quarter based on wages paid in the same quarter in a previous year.
  • Provides rules to allow new employers who were not in existence for all or part of 2019 to be able to claim the credit; and
  • Provides that employers who receive PPP loans may still qualify for the Employee Retention Tax Credit (ERTC) with respect to wages that are not paid for with forgiven PPP proceeds.

 

Financial Services

  • Includes an explicit “hold harmless” provision for PPP lenders.
  • Provides for PPP lender reimbursement by SBA for new PPP loans.
  • Loans of less than $50,000 that is equal to the lesser of 50% of the loan principal or $2,500. 
  • Loans of more than $50,000 and not more than $350,000 equal to 5% of the loan principal. 
  • Loans of more than $350,000 and less than $2,00,000 equal to 3% of the loan principal; and
  • Loans of more than $2,000,000 equal to 1%.
  • Clarifies lender reimbursement by SBA shall be made no later than 5 days post-disbursement.
  • Extends exemption from compliance with the Current Expected Credit Loss (CECL) accounting standard for an additional year, through January 1, 2022. 
  • Extends enhancement of the National Credit Union Administration’s (NCUA’s) Central Liquidity Facility (CLF) by temporarily increasing the CLF’s maximum legal borrowing authority and allowing more credit unions to borrow from the CLF. Access to this facility for an additional year, through December 31, 2021.
  • Extends the temporary suspension of the Generally Accepted Accounting Principles (GAAP) requirements for the Troubled Debt Restructuring (TDR) classifications on loans for an additional year, to January 1, 2022.

 

Rental Assistance

  • $25 billion for states, territories, tribes, and large cities to assist renters. Grantees are able to use funds to provide direct financial assistance or housing stability services to eligible households. 
  • Eligible households may receive up to 12 months of assistance, plus an additional 3 months if necessary, to ensure housing stability. Grantees can only commit to assistance in 3-month increments, after which point any household deemed to be eligible to receive the funds, must re-apply. 
  • An “eligible household” is defined as a renter household that meets the following criteria:
  • Qualifies for unemployment or has experienced a reduction in household income, incurred significant costs, or experienced a financial hardship related to COVID-19.
  • Demonstrates a risk of experiencing homelessness or housing instability; and
  • Has a household income at or below 80 percent of the median income of the area.
  • An application for rental assistance may be made directly to a grantee by either an eligible household or by a landlord on behalf of that eligible household. In general, grantees will provide funds directly to landlords and/or utility service providers. If a landlord does not wish to participate, the grantee may provide funds directly to the eligible household.
  • Extends the eviction moratorium issued by the Centers for Disease Control and Prevention (CDC) through January 31, 2021.

 

Airline Employees and Contractors:

  • $16B for the Payroll Support Program
  • Other Tax Provisions
  • Lower excise taxes for breweries, wineries, and distilleries made permanent
  • New Markets Tax Credit extended for 5 years
  • Work Opportunity Tax Credit extended for 5 years

 

Support for Infrastructure

 

Transportation: ($43 billion) 

  • $10B for Highway Infrastructure programs including $9.8 for Surface Transportation Block Grants to states
  • $14B in Transit Infrastructure Grants ($13.3B urban, $679M non-urban)
  • $2B in grants-in-aid for airports
  • $1B for Amtrak

 

Broadband:

$7 billion for high-speed broadband projects.

 

If you have any questions, please reach out to SimcoHR.


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New York Employers Must Update Employee Handbooks for Reproductive Health Rights

February 3, 2025
Overview of the New Ruling New York employers are once again required to provide a notice in their employee handbooks about reproductive health rights following a recent ruling from the U.S. Court of Appeals for the Second Circuit. The ruling vacated a previous permanent injunction that had blocked the enforcement of the law, meaning employers must now comply with the New York Reproductive Health Bias Law (Labor Law § 203-e). Reproductive Health Bias Law Requirements The Reproductive Health Bias Law was enacted in November 2019 to ensure employees and their dependents can make reproductive health decisions without facing discrimination in the workplace. The law prohibits employers from taking retaliatory actions against employees regarding their reproductive health decisions and requires employers to keep employees' reproductive health information confidential unless there is prior written consent. Under the law, employers must include a notice in their employee handbooks informing employees of their rights and remedies under the Act. This is an essential update that must be made to comply with the law. Impact of the Second Circuit Ruling Religious organizations had challenged the law, arguing that the notice requirement violated their First Amendment rights. However, the Second Circuit disagreed, ruling that the notice requirement was lawful and similar to other workplace disclosure laws. The court noted that while the policy motivating the law may be controversial, the law itself and the obligation for employers to comply are not in question. Action Required for Employers Even though there is no specific penalty for failing to comply with the notice requirement, employers are encouraged to review and update their employee handbooks in light of the court's ruling to ensure they are compliant with the law. For Simco Clients: For clients who utilize Simco’s employee handbook services, rest assured this requirement is already included, and no additional steps are needed.

Pre-Employment Drug Testing: What Job Seekers Need to Know

February 1, 2025
Pre-employment drug testing is a hiring practice that has sparked debate in recent years. While some industries rely on it for safety and compliance, others are rethinking its necessity—especially as marijuana laws evolve. If you're actively job searching, knowing what to expect can help you prepare, avoid surprises, and understand your rights. Who Still Requires Drug Testing? Not all industries conduct pre-employment drug testing, but for certain roles, it's still a non-negotiable requirement. Some of the most common sectors where testing remains standard include: Transportation & Public Safety – Truck drivers, pilots, transit operators, and law enforcement Healthcare & Childcare – Nurses, physicians, pharmacists, and daycare providers Government & Military Contracts – Federal employees, military personnel, and defense contractors Manufacturing & Construction – Heavy equipment operators and industrial workers handling hazardous materials However, policies vary widely even within these industries. Some companies are now loosening restrictions for non-safety-sensitive positions, recognizing that outdated drug testing policies may limit their talent pool. What Substances Are Typically Screened? Most pre-employment drug tests screen for common illicit substances, but the depth of testing can vary. Standard screenings include: Five-Panel Test – Detects marijuana, cocaine, amphetamines, opiates, and PCP Expanded Panel Tests – Can include benzodiazepines, barbiturates, synthetic opioids, and even alcohol Employers may use different types of tests, including urine, saliva, blood, or hair follicle analysis. Hair follicle testing, for example, can detect drug use from months prior—something applicants should be mindful of. The Evolving Landscape of Marijuana Testing One of the most significant changes in pre-employment drug testing involves marijuana. With over half of U.S. states legalizing marijuana in some form, companies are reevaluating their stance. Some states prohibit employers from disqualifying candidates for off-duty marijuana use. Other states still allow testing but require employers to prove impairment, not just presence. Federally regulated positions, such as those in transportation, maintain strict no-tolerance policies. This shift means that while some applicants may no longer face automatic disqualification for marijuana use, it’s still important to know an employer’s policy before assuming it won’t impact hiring decisions. What Happens If You Fail a Pre-Employment Drug Test? The consequences of failing a drug test depend on multiple factors, including company policy, industry regulations, and state laws. In regulated industries (e.g., transportation, healthcare, federal employment), a failed test almost always results in immediate disqualification. Some employers allow re-testing or a waiting period before reapplying, particularly for marijuana use in certain states. If you have a valid prescription for a tested substance (e.g., opioids or ADHD medication), you may need to provide documentation to avoid disqualification. Additionally, some companies offer assistance programs or second-chance policies, especially if an applicant is upfront about past use or addiction recovery. Do Employers Really Benefit from Drug Testing? With the workforce evolving, many companies are questioning whether traditional drug testing policies still serve their intended purpose. Some argue that testing reduces liability, improves workplace safety, and ensures reliable employees. However, others believe that outdated policies exclude qualified candidates, especially in a competitive job market. The Arguments for Drug Testing: Reduces workplace accidents in safety-sensitive roles Ensures compliance with federal and industry regulations Discourages drug use in high-responsibility positions The Arguments Against Drug Testing: May eliminate qualified candidates for non-safety-sensitive roles Does not account for impairment vs. past use (especially with marijuana) Can be costly and time-consuming for employers Companies that still require drug testing must weigh these factors and ensure their policies align with modern workforce expectations. The Future of Pre-Employment Drug Testing The debate over drug testing isn’t going away anytime soon. As laws and attitudes continue shifting, companies may move toward impairment-based testing rather than zero-tolerance screening. This means job seekers should stay informed, especially in industries where testing is likely to remain a requirement. For now, the best approach is to understand employer expectations, know your legal protections, and be prepared for potential screenings as part of the hiring process.

OSHA Form 300A Requirements: Key Deadlines for Employers

January 30, 2025
Workplace Posting for Form 300A Begins February 1 Employers with 11 or more employees at any point in 2024 must display the Occupational Safety and Health Administration (OSHA) Form 300A, Summary of Work-Related Injuries and Illnesses, from February 1 to April 30. Even if no recordable incidents occurred in 2024, this posting is mandatory. The form must be certified by a company executive and displayed prominently in each workplace where employee notices are typically posted. Certain businesses are exempt from OSHA’s regular recordkeeping requirements, including this posting, if they employ 10 or fewer people or if their primary business activity is considered low hazard according to OSHA's guidelines. A full list of low-hazard industries, categorized by NAICS codes, is available here . However, even exempt companies must report fatalities or incidents resulting in hospitalization, amputation, or loss of an eye. Electronic Submission of Form 300A Due by March 2 Businesses with 250 or more employees from the previous year, or those with 20-249 employees in high-risk industries, must submit their Form 300A data electronically through OSHA's Injury Tracking Application (ITA) by March 2, 2025. This requirement applies based on the number of employees at a specific location, not the entire company. Employers under State Plans are also required to submit electronically. Exemptions from this electronic submission apply to employers who: Are exempt from OSHA's regular recordkeeping rules. Had fewer than 20 employees in the past year. Had between 20 and 249 employees but aren’t in the designated high-risk industries. Additional resources, FAQs, and access to the ITA are available on OSHA’s ITA page . Submission of Forms 300 and 301 Required by March 2 Employers in high-hazard industries with 100 or more employees are required to submit data from both their Form 300 (Log of Work-Related Injuries and Illnesses) and Form 301 (Injury and Illness Incident Report) through the ITA, in addition to their Form 300A submission. Help with Coverage Determination Employers can use OSHA’s ITA Coverage Application to assess whether they need to submit injury and illness data electronically or refer to the State Plan for specific reporting requirements.

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