Legislative update: The latest on COVID-19 relief and the upcoming electionAugust 6, 2020Webinar will start at 2 p.m. ETA recording and a copy of the slides will be sent to attendees.

This content is not to be considered legal advice. We recommend Clients speak with legal counsel specializing in labor, employment, and tax law to ensure your organization meets requirements.

James Slotnick, AVP Government Relations

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• Additional relief on the way

• Countdown to November 3rd

Agenda

Major COVID-19 federal legislation

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MARCH 6

Coronavirus Preparedness and Response Supplemental Appropriations Act$8.3 Billion Spending Package

MARCH 18

Families First Coronavirus Response Act

U500 Paid Sick Leave & Emergency Paid FMLA

MARCH 27

Coronavirus Aid, Relief, and Economic Security (CARES) Act: Individual and Industry Economic Support

AUGUST

HEROES Act?

HEALS Act?

Executive Orders?

The clock is ticking…• Deadlines, past and approaching

⎻ July 31st, $600 federal unemployment benefit

⎻ August 7th, Senate August Recess

⎻ August 8th, Paycheck Protection Program

• Potential outcomes

⎻ “Short term” unemployment extension

⎻ Executive Orders

⎻ Senate in session next week

• Recent changes

⎻ 24 weeks to use the funds

• Changed from the original 8 weeks

⎻ 60% of funds used for payroll costs, 40% for other expenses

• Changed from 75% to 25%

• Potential changes in HEALS Act

⎻ Second loan opportunity for business with under 300 employees

• 50% reduction in gross receipts in Q1 or Q2 2020 vs same quarter in 2019

⎻ New item included as part of payroll costs – factor into loan amount and are forgivable expenses

• Group insurance premiums

⎻ New items included as forgivable expenses

• PPE and “adaptive investments”

• Operating expenses (HR and Accounting software costs)

• Property damage from 2020 not covered by insurance

• Supplier costs contracted before 2/15/205

DONE

PPP by percentage of recipients

Under $150k $150k-$1M

$1M-$2M $2M+

PPP by $ sum

Under $150k $150k-$1M

$1M-$2M $2M+

Paycheck Protection Program

Tax credits for PPE

• HEALS Act proposes a 50% tax credit for purchase of:

⎻ PPE

⎻ Cleaning supplies

⎻ “Qualified Workplace Reconfiguration Expenses”

• Tax credit depends on size of business

⎻ First 500 employees: $1,000 per employee

⎻ Next 500−1,000 employees: $750 per employee

⎻ Over 1,000 employees: $500 per employee

Other potential miscellaneous provisions

• Recovery payments 2.0

⎻ $1,200 individual, $2,400 married couple, $500 per dependent

⎻ Phase out $99,000 and $198,000 of Adjusted Gross Income

• Unemployment insurance

⎻ $200 weekly federal payment for August and September

⎻ October through January, “top-up” to 70% of pre-job loss amount

• Business liability protection

⎻ Both must have made reasonable efforts to comply with applicable public health guidelines AND not engage in willful misconduct or gross negligence

COBRA subsidies

• HEALS Act: No

• HEROES Act: Yes, at 100%

• 2002 and 2009 Congress provided COBRA subsidies

⎻ 65% COBRA subsidization

• Important to watch given the extended COBRA deadlines

Bi-partisan support:

• Paycheck Protection Program 2.0

• Hospital funding

• Testing funding

• School funding

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Democrats’ priority• Unemployment benefits• Funding for cities

and towns

Republicans’ priority• Business liability

protection

Next COVID-19 package likely to pass prior to August recess

Where we will likely end up…

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• Additional relief on the way

• Countdown to November 3rd

Agenda

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IL

ME

Going into 2016, since 1992

242 “Blue Wall” electoral votes

102 “Red Fence” electoral votes

13 states

18 states and D.C.

WA

OR

NV

CA

AZ

MT

ID

WY

COUT

NM

TX

OK

KS

NE

SD

NDMN

IA

MO

AR

LA

MS AL GA

FL

SC

NCTN

KY

WI

MI

IN OH

WVVA

PA

MDDE

NJ

CTRI

NY

VTNH

MA

AK

HI

ME

IL

Source: New York Times, 270towin.com

Going into 2016: The “Blue Wall” and “Red Fence”

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IL

ME

Pennsylvania: 0.7% - 20 electoral votes

Michigan: 0.3% - 16 electoral votes

Wisconsin: 1.2% - 10 electoral votes

WA

OR

NV

CA

AZ

MT

ID

WY

COUT

NM

TX

OK

KS

NE

SD

NDMN

IA

MO

AR

LA

MS AL GA

FL

SC

NCTN

KY

WI

MI

IN OH

WVVA

PA

MDDE

NJ

CTRI

NY

VTNH

MA

AK

HI

ME

IL

Source: New York Times, 270towin.com

2016: The “Blue Wall” collapses

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IL

ME

Pennsylvania: 0.7% - 20 electoral votes

Michigan: 0.3% - 16 electoral votes

Wisconsin: 1.2% - 10 electoral votes

WA

OR

NV

CA

AZ

MT

ID

WY

COUT

NM

TX

OK

KS

NE

SD

NDMN

IA

MO

AR

LA

MS AL GA

FL

SC

NCTN

KY

WI

MI

IN OH

WVVA

PA

MDDE

NJ

CTRI

NY

VTNH

MA

AK

HI

ME

IL

Source: New York Times, 270towin.com

Ohio – 7.9% - 18 electoral votes

Florida: 1.2% - 29 electoral votes

North Carolina: 2.6% - 15 electoral votes

2016: The “Blue Wall” collapses

Senate seats in play, by election year

Source: Cook Political Report.

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10

25

12

15

24

8

22

2014 2016 2018 2020

Democratic seats Republican seats

Republicans gained 9 seats Democrats gained 2 seats ?????Republicans gained 2 seats

What to watch for in 2020

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2020 senate races

15

OH

WV

VA

PA

NY

ME

NC

SC

GA

TN

KY

IN

MI

WI

MN

IL

LATX

OK

ID

NV

OR

WA

CA

AZ

NM

CO

WY

MT ND

SD

IA

UT

FL

AR

MO

MS AL

NE

KS

AK

States

to watch:• Alabama

• Arizona

• Maine

• North Carolina

• Colorado

■ Democrat incumbent ■ Republican incumbent

Most likely

Split government:

Biden or Trump President

Senate R

House D

Possible

Full Democratic control:

Biden President

Senate D

House D

Unlikely

Split government:

Trump President

Senate D

House D

2020 potential outcomes

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Summary

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Next legislative package likely passing soon

Election will be close

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Learn about final regulations and next steps for Clients to comply and be ready for January 1, 2021.

Overview of the MA PFML law and the final regulations released on July 24, 2020

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Next steps for compliance and readiness for January 1, 2021

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FFCRA at-a-glance

Paycheck Protection Program overview

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This content is not to be considered legal advice. We recommend Clients speak with legal counsel specializing in labor and employment law to ensure your organization meets requirements.

James.slotnick@sunlife.com

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