29
during a disaster or crisis. This is especially important when state and local laws may create special
considerations in how they interact with similar federal laws. For example, some cities and states
created new required sick leave laws that may have broadened the paid leave requirements of the
FFCRA.
13
State and local governments should also help small and medium-size businesses with any
documentation required to obtain and support federal benefits. For example, the FFCRA requires
employers subject to the act’s paid leave provisions to obtain written documentation from
employees to show they were qualified for the sick or family leave that produced the employer’s
fully refundable payroll tax credits. This documentation can include proof that a child’s school was
closed, the relevant dates, and government isolation orders. Some employers might not realize
they need this proof or do not have all that is required until a future audit by the U.S. Department
of Labor or IRS. To help these employers and employees, state and local governments should
either require public schools to keep information about their closure on their website for at least
four years or consolidate all information on a state-level website.
Some federal funds might be available, such as from the Federal Emergency Management Agency,
because of the pandemic being declared a federal disaster on March 13, 2020.
14
And states might
be able to obtain additional FEMA assistance depending on need and the length of the
pandemic.
15
The federal disaster declaration also made IRC section 139, disaster relief payments,
available, which employers might want to use, if possible, to provide tax-free assistance, such as
technology resources for children of employees.
Providing lists of these federal and state resources on websites and to elected officials who
individuals and businesses often call for assistance should prove helpful for the duration of the
pandemic and beyond. Many taxpayers might not realize until months or years later that they
were eligible for financial or tax relief measures and will seek information on it, likely from
government agencies and elected officials.
E. Consider Tax System Oddities and Outdated Items That Can Generate Revenue
While not easy during difficult times, lawmakers should always be looking for tax loopholes to
close, outdated provisions to repeal, and inequities to fix or remove. The weakened budgets
following the pandemic can be helped by addressing these areas. Working to identify helpful tax
law changes annually is necessary.
13
For example, Los Angeles required all employers to provide employees with supplemental paid sick leave for
COVID-19 reasons (Ordinance No. 186590
). Some of the provisions of this ordinance, such as the maximum pay
level, tie to the FFCRA. Providing assistance to small businesses on how to comply with local, state, and federal sick
pay laws during the pandemic helps ensure that the rules are followed and any possible federal benefits are fully
obtained.
14
FEMA, supra note 2. All states, the District of Columbia, and four territories were approved for major disaster
declarations. FEMA, COVID-19 Disaster Declarations.
15
For details on the federal disaster declaration process and state benefits for the pandemic, see Congressional
Research Service, “Stafford Act Declarations for COVID-19 FAQ
” (Apr. 22, 2020).
6
The Contemporary Tax Journal, Vol. 10, Iss. 2 [2021], Art. 7
https://scholarworks.sjsu.edu/sjsumstjournal/vol10/iss2/7
DOI: 10.31979/2381-3679.2021.100207