IRS Provides Information on COVID-19-Related Tax Credits for Required Paid Leave
Credit unions can read a detailed overview of the law as well as a FAQ that covers common questions.
The Internal Revenue Service (IRS) created an online resource that provides information for small and midsized businesses on COVID-19-related tax credits for required paid leave. The resource provides a detailed overview of the law as well as a FAQ.
The FAQ covers questions related to:
- Determining the amount of the tax credit for qualified sick leave wages, family leave wages, and health plan expenses;
- How to claim the credits;
- How an employer should substantiate eligibility for tax credits for qualified leave wages;
- Periods of time for which credits are available;
- Special issues for employers; taxation and deductibility of tax credits; and other topics.
Question of the Week
Q. How do check holds work when a deposit is made using remote deposit capture? Does Regulation CC apply?
A. Currently, Regulation CC does not address deposits made via the remote deposit channel. Funds availability guidelines for deposits made through remote deposit capture should be addressed in the contract that exists between your credit union and your member. Credit unions should consider conducting a risk assessment for their remote deposit capture product as it develops, reviews, or amends its written funds availability policy. The Federal Financial Institutions Examination Council has published a paper on risk management for remote deposit capture that could aid in the creation of a risk assessment specific to your institution.
Credit unions will also want to consider the remote deposit capture indemnity provisions and requiring members to endorse remotely deposited items “for mobile deposit only.”
National Credit Union Administration (NCUA)
NCUA Board Approves Changes to Capital; Business Lending Regulations
The NCUA approved an interim final rule that amends the agency’s capital adequacy and member business loans and commercial lending regulations with regards to Paycheck Protection Program loans. The PPP loans will receive a 0% risk weighting under the NCUA’s risk-based capital requirements, and, if a loan is pledged as collateral for a non-recourse loan provided through the Federal Reserve Board’s PPPLF, the covered loan can be excluded from a credit union’s calculation of total assets for the purposes of calculating its net worth ration.
Residential Appraisals Threshold Increase and Other COVID-19 Related Relief Measures
The NCUA released letter to credit unions 20-CU-10, which provides information on relief measures for residential real estate appraisals.
Consumer Financial Protection Bureau (CFPB)
Bulletin 2020-02 – Compliance Bulletin and Policy Guidance: Handling of Information and Documents During Mortgage Servicing Transfers
The CFPB outlined practices to provide mortgage servicers clarity, facilitate compliance, and prevent harm to consumers during the transfer of residential mortgages.
Federal Reserve Board (FRB)
FRB Interim Final Rule to Delete Six-Per-Month Limit on Transfers from Savings Accounts in Regulation D
The FRB announced an interim final rule to amend Regulation D to delete the six-per-month limit on convenient transfers from the “savings deposit” definition. The interim final rule allows depository institutions to immediately suspend enforcement of the six-transfer limit and to allow their members to make an unlimited number of convenient transfers and withdrawals from their savings deposits.
ACH Network Rules Pandemic-Related FAQs
NACHA has updated the ACH Network Rules Pandemic-Related FAQ.
Internal Revenue Service (IRS)
IRS Enhances ‘Get My Payment’ Online Application to Help Taxpayers
The IRS announced significant enhancements to the “Get My Payment” tool to deliver an improved experience.
Office of Foreign Assets Control (OFAC)
OFAC has updated the SDN list as of April 22. The last update prior to this was April 6.
Questions? Contact the Compliance Hotline: 1.800.546.4465; [email protected].