IADA has compiled the latest coronavirus-related updates into one email for you. Let Brittany Bungert know if anyone else at your dealership should be on this distribution list.
Dealership Operations During the COVID-19 Pandemic
Business Hour Waiver Extended
Dealers must post their business hours but do not need to notify the Department of Transportation 10 days in advance of changing hours, according to a new waiver issued by the DOT at the request of IADA.

Iowa DOT Director Scott Marler has waived the requirement that a motor vehicle dealer must file a change in business hours in writing with the DOT 10 days before the change goes into effect. Instead, dealers must post their hours but do not need to notify the DOT until the regular license renewal application process later this year.

The business hours filing requirement had previously been waived by Governor Kim Reynolds as part of an emergency order issued in March. This new DOT business hours filing waiver addresses how Iowa dealerships transition from the emergency order.

Dealers are required to be open and staffed 32 hours per week. Only hours between 7 a.m. and 9 p.m. Monday through Friday count toward the 32 hour requirement.

The business hour filing waiver is effective immediately and ends on December 31, 2020.
Paycheck Protection Program (PPP)
Safe Harbor Deadline Friday, May 14
The SBA extended the safe harbor deadline to return PPP loan funds to Friday, May 14 in anticipation of issuing further guidance this week. The guidance is expected to address the necessity certification PPP loan applicants make.

NADA Revises Emergency Leave Mandates FAQ
NADA has issued a revised New Federal Emergency Leave Mandates Frequently Asked Questions. The FAQ addresses questions related employee eligibility for emergency paid sick or childcare leave related to COVID-19.
Tax Credits Available to Employers
Three new tax credits are available to employers affected by COVID-19.

Employee Retention Credit
The employee retention credit is a refundable credit of 50% of up to $10,000 in wages paid by an eligible employer. The credit is not available to businesses who take out a PPP loan.

To qualify for the credit, the business must be fully or partially suspended by government order due to COVID-19 during the quarter and the business' gross receipts must be below 50% of the comparable quarter in 2019. Once the business' gross receipts go above 80% of a comparable quarter in 2019, the business no longer qualifies at the end of that quarter.

Paid Sick Leave, Family Leave Credits
Employers can receive credits for employees who are unable to work due to:
  • coronavirus-related quarantine
  • COVID-19 symptoms (and the employee is seeking a medical diagnosis)
  • caring for someone with COVID-19
  • caring for a child or children whose school or daycare is closed because of the coronavirus

Eligible employers can immediately receive a credit in the full amount of the required sick or family leave, as well as related health plan expenses and the employer's portion of Medicare tax on the leave, through December 31, 2020.

To Receive the Credit
Eligible employers will report their qualified wages and related health insurance costs on their quarterly employment tax returns or Form 941 for subsequent quarters. If the business' employment tax deposits do not cover the credit, they can receive an advance payment from the IRS by submitting Form 7200.

Upcoming Webinars

Hosted by NADA

Tuesday, May 12
12:00-1:00 p.m.

Hosted by NADA

Wednesday, May 13
12:00-1:00 p.m.