John D. Teter Law Offices

REQUEST A CONSULTATION TODAY

408-866-1810

1361 South Winchester Boulevard, Suite 113
San Jose, CA 95128
Subscribe to this list via RSS Blog posts tagged in COVID-19

San Jose, CA tax attorney employer tax credits

Since the beginning of March, it is an understatement to say that COVID-19 has greatly impacted business owners, employees, and the workplace nationwide. Most businesses have either gone remote, closed temporarily, or shut their doors for the last time. Not only are the businesses themselves leaving many people without work, but those who become infected with COVID-19 or are required to self-quarantine may be unable to work even if they are employed. In order to address the financial impact of coronavirus, the Internal Revenue Service (IRS) has implemented two new employer tax credits to help U.S. employees who have been affected by the global pandemic.

Sick and Family Leave

There are multiple credits tied to requests for medical leave since you may not necessarily be requesting this absence from work for your own self. The following are the employer credits to which you may be entitled:

...

San Jose, CA business law attorney for business interruption insuranceThe COVID-19 virus has impacted every facet of our lives. Schools across the country have been canceled and replaced by online classes, employees have been laid off from their jobs, and business owners have lost valuable income. From restaurants to doctor’s offices, business owners are suffering. If you are a small business owner, you may be extremely concerned about the effect “shelter-in-place” directives are having on your business. You may even wonder whether or not your business will survive. One option that may be beneficial is business interruption insurance.

What Is Business Interruption Insurance?

Business interruption insurance covers business losses caused by a disaster. It is an optional form of coverage that may be included in a business owners’ policy or a comprehensive multi-peril commercial policy, or it can be issued on a standalone basis. This insurance is intended to protect against losses resulting from disruptions to normal business operations. In addition to replacing lost income, business interruption insurance may also cover:

  • Estimated profits based on previous months’ profits
  • Fixed costs such as operating expenses
  • Employee wages and worker training costs  
  • Civil authority ingress/egress
  • Taxes
  • Loan payments
  • Other reasonable expenses

Will Business Interruption Coverage Cover Losses Due to COVID-19?

There has been a great deal of uncertainty and confusion regarding business insurance coverage and shutdowns caused by COVID-19. Recently, the Pennsylvania Supreme Court made a ruling in the case of Friends of Danny DeVito v. Wolf that may influence business interruption insurance claims. The plaintiff in this case was asking for the shutdown order to be set aside on the grounds that the mandated shutdown was an overreach. In the end, the Pennsylvania Supreme Court ruled that the order should not be canceled, because the coronavirus is “a natural disaster and a catastrophe of massive proportion.” If other states, including California, agree with the Pennsylvania Court’s classification of the coronavirus pandemic as a natural disaster, insurers would likely be required to pay business interruption claims based on COVID-19.

...
BBB ABA State bar of california SCCBA MH 2016
Back to Top