Publications — Page 19 of 50 — Lindabury, McCormick, Estabrook & Cooper, P.C. Firm News & Events

IRS Announces Additional Guidance for Coronavirus-Related Distributions and Loans

Published on: June 29, 2020 | by James K. Estabrook and Elizabeth Engert Manzo

On June 19, 2020, the IRS released Notice 2020-50, which provides additional guidance and relief for retirement plan participants taking coronavirus-related distributions and loans under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). Under the CARES Act, “qualified individuals” may take coronavirus-related distributions of up to $100,000 from their eligible retirement plans without being subject to the 10% additional tax on early distributions. In addition, a coronavirus-related distribution can be included in income ratably over the three-year period commencing with the year of distribution and the individual taking the distribution has three years to repay the distribution to the plan, or roll it over to an Individual Retirement Account (“IRA”) or other qualified retirement plan, with the effect of reversing the income tax consequences of the distribution. In addition, the CARES Act allows plans to suspend loan repayments due from March 27, 2020 through December 31, 2020 and further allows for an increase in the dollar amount on loans made between March 27, 2020 and September 22, 2020 from $50,000 to $100,000. Notice 2020-50 expands the definition of qualified individuals under the Act and provides additional, clarifying guidance regarding coronavirus-related distributions and loans.

Expansion of the Definition of “Qualified Individual”

Under the original language of the CARES Act, a qualified individual included the following persons:

SBA and U.S. Treasury Department Approve Simplified Paycheck Protection Program Forgiveness Application Materials

Published on: June 18, 2020 | by Robert W. Anderson

After receiving numerous complaints about the complexity of the loan forgiveness application form under the Paycheck Protection Program, the SBA and U.S. Department of Treasury on June 16, 2020 approved simplified versions of the forgiveness application. The original loan forgiveness application was 11 pages long, but now many borrowers under the Paycheck Protection Program (“PPP”) will be eligible to apply for forgiveness under a newly streamlined EZ version of the application which is only 3 pages long. Borrowers that cannot qualify to use the EZ version will be able to instead now use a 5-page SBA Form 3508.

To qualify for use of the EZ form, a borrower must be able to fit within at least one of the following three categories:

1. The borrower is a self-employed individual, independent contractor, or sole proprietor who had no employees at the time of the PPP application and did not include any employee salaries in the computation of average monthly salaries in the application.

How to Resume a Former Name At or After the Time of Divorce

Published on: June 11, 2020 | by James McGlew, II

One topic new clients ask about is how they can resume a former name at the time they get divorced. Others were divorced but did not resume a former name at that time and ask is it too late to do so now? Still others did resume a former name but have questions about what to do next.

In New Jersey, Courts permit a Party to formally resume the use of a former name (or other surname) upon the entry of a judgment of divorce. If this is something you wish to do, it is best to advise your attorney at the outset of your case. It can then be included in your first filing with the Court whether that is a Complaint with you as the Plaintiff or in your Counterclaim with you as the Defendant.

If you are unsure as to whether to do so at the start of your case, a request can be made by your attorney at the final divorce hearing to amend/revise your pleading to permit you to do so at that time.

Kathleen M. Connelly Featured in ROI-NJ Article Titled ‘Panel: 1st Day Back in Office Should be about Education, Not Production’

Published on: June 11, 2020 | by Lindabury, McCormick, Estabrook & Cooper, P.C.

Lindabury partner Kathleen M. Connelly of the firm’s Employment Law group discussed with ROI-NJ the question her clients have been asking most in regard to office reopenings, which is how to deal with employees who are reluctant to return to work due to a generalized fear of COVID contraction. While employees returning to the workplace continue to have significant leave protection for COVID and non-COVID absences through December of 2020, employees can still be terminated if they refuse to return to work, and there are certain ways employers can communicate and accommodate their staff, which is also outlined in the article.

You can read the entire transcript here.

The Paycheck Protection Program Flexibility Act Makes Critical Changes to the Paycheck Protection Program

Published on: June 9, 2020 | by James K. Estabrook

On June 5, 2020, the Paycheck Protection Program Flexibility Act of 2020 (“PPPFA”) was signed into law. The PPPFA is aimed at providing borrowers with additional flexibility to maximize forgiveness of loans received under the Paycheck Protection Program (“PPP”) established as part of the CARES Act. The following provisions of the PPPFA are highlighted below for your consideration:

Extension of Application Period: The PPPFA extends the final date by which PPP loans can be made from June 30, 2020 to December 31, 2020. However, a congressional letter clarifies that June 30, 2020 remains the last day for accepting and approving PPP loans. Although additional guidance may be issued on whether applications will be accepted until December 31, 2020, employers should err on the side of caution and apply for loans prior to June 30, 2020.
Repayment Term is Extended: For those PPP loans originated on or after the date of enactment of the PPPFA, the repayment term for the unforgiven portion of the loan is extended from two to not less than five years. However, borrowers and lenders may mutually agree to expand the repayment period under existing loans (entered into prior to enactment of the PPPFA).

‘Cyber Security Best Practices During the Covid-19 Pandemic’ Webinar Presented by Eric B. Levine for The Suburban Chamber of Commerce

Published on: June 8, 2020 | by Lindabury, McCormick, Estabrook & Cooper, P.C.

This webinar addresses best practices to protect yourself virtually during the coronavirus pandemic.

Presented by Eric Levine, Executive Vice President of Lindabury, McCormick, Estabrook, & Cooper and Co-Chair of the firm’s Cybersecurity and Data Privacy practice, this virtual presentation was hosted by The Suburban Chamber of Commerce.

Mr. Levine works with and creates cybersecurity policies and procedures for corporate leaders as well as with internal cyber-breach response teams that respond to cyber-attacks. He advises corporations and executives on mitigating the impact of cyber-breaches and counseling on post-breach regulatory reporting and client/customer notification duties. Mr. Levine is an accomplished litigator who has trial experience in both state and federal courts. As such, he works with corporations to defend claims brought by plaintiffs affected by cyber-breaches.

Employers Covered by the FFCRA Must Post the DOL’s Employee Rights Poster in the Workplace and Should Issue a Copy of the Poster to Employees

Published on: May 29, 2020 | by Lindabury, McCormick, Estabrook & Cooper, P.C.

In response to the COVID-19 public health emergency, Congress passed the Families First Coronavirus Response Act (the “FFCRA”) requiring employers with 500 or less employees to provide paid sick leave and paid family leave to qualified employees affected by the pandemic. These benefits are in addition to any other earned sick leave, vacation or other paid time off benefits offered by the employer. These additional benefits are temporary and are only available to employees through December 31, 2020.

Posting requirement: Now that employers are preparing for employees to return to the workplace, employers covered by the FFCRA must prominently display the U.S. Department of Labor’s poster entitled Employee Rights – Paid Sick Leave and Expanded Family and Medical Leave under the Families First Coronavirus Response Act, a copy of which can be found here.

Distribution of Employee Rights publication: Both the federal and state governments are encouraging employers to continue to permit employees to work remotely to reduce the headcount in the workplace and potential spread of the virus. Covered employers who plan to continue remote work arrangements should therefore distribute the DOL’s Employee Rights publication to these employees, if not to all employees, to ensure employee awareness of leave rights under the FFCRA.

The DOL Issues New Rule Regarding Electronic Disclosure Safe Harbor for Retirement Plans

Published on: May 28, 2020 | by James K. Estabrook and Elizabeth Engert Manzo

On May 21, 2020, the U.S. Department of Labor (“DOL”) announced a final rule allowing employers to post retirement plan disclosures online or furnish them to workers via email. The rule is aimed at reducing administrative expenses for employers and making information more readily available to workers.

ERISA-covered retirement plans must furnish multiple disclosures each year to participants and beneficiaries. The exact number of disclosures per year depends on the specific type of retirement plan, its features, and in some cases the plan’s funding status. To deliver these disclosures electronically, plan administrators were previously required to comply with the regulatory safe harbor established in 2002 under 29 CFR 2520.104b-1(c), which required that disclosures be reasonably calculated to ensure that workers actually received the information, including confirmation that the transmitted information was actually received (e.g., using return-receipt or notice of undelivered electronic mail features, conducting periodic reviews or surveys to confirm receipt of the transmitted information).

On August 31, 2018, Executive Order 13847, entitled Strengthening Retirement Security in America, was issued. The Order directed the DOL to review whether regulatory or other actions could be taken to make retirement plan disclosures more understandable for participants and beneficiaries and to focus on reducing the production and distribution costs that retirement plan disclosures impose on employers. In October 2019, the Department published a proposed regulation with a solicitation for public comment. In response to the commentary received, a final rule creating a new voluntary safe harbor was established. The new safe harbor permits the following two optional methods for electronic delivery:

If I Die Without a Will in NJ, Will My Family Receive My Assets? A Look at the Case of Sally Rosenthal

Published on: May 22, 2020 | by James K. Estabrook

Will your assets pass to family if you die without a Will in New Jersey? Not necessarily. In some cases, a decedent’s property can actually escheat, or revert, to the State of New Jersey when the decedent has living relatives. The only way to ensure that your property is distributed according to your wishes is to execute a Will. While it may be tempting to let estate planning take a back burner to the hustle and bustle of everyday life, having a Will and other necessary estate planning documents helps your loved ones avoid additional hassles at the time of your passing.

Intestacy laws govern what happens to a person’s assets when he or she dies without a Will. Intestacy laws, however, do not interfere with assets that are jointly owned–those go to the survivor; or assets that are subject to a separate designation of beneficiary–those go to the designated beneficiary. In New Jersey, heirs must survive the decedent by at least 120 hours to inherit. New Jersey has adopted an intestacy system that only considers those relatives in the third branch and closer as “heirs” for the purposes of intestate succession. This is known as a parentelic system. The first branch includes the decedent, his children, grandchildren and great-grandchildren. The second branch includes decedent’s parents, siblings, and nieces and nephews down the line to great-grandnieces and great-grandnephews. The third and final branch of heirs for purposes of the New Jersey intestacy laws consists of the decedent’s grandparents and descendants of grandparents including aunts, uncles, and first cousins.

It is important to note that if a decedent dies without a Will and has a spouse or domestic partner, that spouse or partner may not inherit the full estate. This debunks the common misconception that if you pass without a Will, your spouse will automatically receive everything. The surviving spouse or partner’s share depends on many things including but not limited to whether the couple had children together, whether there are children from a prior marriage, and whether the decedent has parents who are still living.

Signing Estate Planning Documents During a Pandemic

Published on: May 21, 2020 | by Anne Marie Robbins

The COVID-19 crisis, and its attendant rules of social distancing, face masks, etc. have presented new challenges to estate planning attorneys in the realm of document executions. How are we advising clients who wish to sign their estate planning documents during this pandemic? The usual participants when we meet with clients to execute wills and other documents include the client(s), the attorney who serves as one witness, a staff member who serves as the second witness, and a notary public. Like many other law firms in New Jersey, we have not been meeting with clients in our offices since mid-March. Many of our attorneys, and most of our staff, are working remotely. Hence we cannot easily assemble the normal cast of characters to participate in the execution of client documents. Further, wills and other estate planning documents may not be signed by electronic signature; such documents must be signed in person with a so-called “wet” signature.

Here are some of the ways we have been helping our clients sign their documents in these challenging times.

1. The signing may be handled by the client at home or elsewhere, with execution instructions provided by the attorney: