June 17, 2020

COVID-19 Government Relations Daily Summary

The following includes updates on the Illinois Department of Insurance's Company bulletin on expedited claims for businesses and implementation of the City of Chicago's Fair Workweek Schedule as well as federal updates including applications for PPP loan forgiveness and information from the IRS.

Paycheck Protection Program Forgiveness

The U.S. Small Business Administration and the Treasury Department released two Paycheck Protection Program (PPP) loan-forgiveness application forms vis-à-vis loan forgiveness application forms and an EZ application form. SBA Release 20-48, the new EZ version of the PPP loan-forgiveness application is available for borrowers that:
• Are self-employed with no employees, or
• Did not reduce salaries or wages of their employees by more than 25% and did not reduce the # of hours for their employees, or
• Had reductions in business activity as a result of health directives related to COVID-19, and did not reduce employee salaries or wages by more than 25%
EZ PPP Loan Forgiveness Application
PPP Loan Forgiveness Application

Both applications provide an option of using the original eight-week covered period or the extended 24-week covered period.

Internal Revenue Service

PPP Flexibility Act-Expense Deduction
IRS Notice 2020-32 announced that loan forgiveness expenses are not deductible. The Chairman of the House Ways and Means Committee stated that in the next COVID-19 stimulus bill, he intends on clarifying that the loan forgiveness expenses are tax deductible. ICPAS Government Relations will continue to closely monitor relief legislation clarifying this issue and will provide information as it becomes available.

IRS Continues to Accept and Transmit Documents by Email (COVID-19)
The Internal Revenue Service Enforcement Division issued an updated memorandum on June 12, 2020 authorizing acceptance of documents by email and digital signatures on certain documents in response to the COVID-19) pandemic. 


Illinois Department of Insurance
Company Bulletin-Insurance Companies Expedite Claims

The Illinois Department of Insurance issued Company Bulletin 2020-15 urging insurance companies to expedite claims for Illinois businesses that were damaged by vandalism and looting.  IDOI 2020-15

City of Chicago
Chicago City Council Delays Private Right of Action in Fair Workweek Ordinance

The Chicago City Council has amended the Fair Workweek (FWW) Ordinance to delay the filing of private employee lawsuits until January 1, 2021. The effective date of the ordinance remains July 1, 2020. The city’s Office of Labor Standards within the Business Affairs and Consumer Protection (BACP) Department will begin enforcement of the new ordinance as of July 1. See article.
As of this date, covered employers will have to post work schedules at least 10 days in advance for employees earning less than $50k annually or $26/hourly.  There are significant penalties accruing per day per employee for non-compliance. See BECP’s published rules and guidance.