Eligible air carriers and associated contractors receiving financial assistance under the Air Carrier Worker Support section of the CARES Act must agree to limit the total remuneration and possible allowances of certain officers and employees. These restrictions are generally the same as those described above with respect to section 4004 (i.e., the restrictions apply to executives and employees with total compensation of more than $425,000 in the 2019 calendar year, and the law limits the total compensation and severance pay that can be paid for a period of 12 months during which the restrictions are in effect). However, the restrictions set out in article 4116 shall apply only during the two-year period from 24 March 2020 to 24 March. March 2022 (and the exception for conventional salaried employees applies to existing collective agreements concluded before the entry into force of the CARES law). The court found that the payments were “cash pay” but were not paid to workers for services to the employer, although they came from an employer`s pay slip, as the employer had no control over whether the union had ratified the collective agreement. For the purposes of both CareS Sections 4004 and 4116, total compensation is defined to include salary, bonuses, share awards and other financial benefits granted by a lawful business to an officer or employee of the entitled business. In principle, the provisions do not apply to workers whose remuneration is fixed by an existing collective agreement. Treated employees are not subject to restrictions if their remuneration is set under an existing collective agreement, which was in force before 1 March 2020. The IRS has decided that payments resulting from the ratification of a collective agreement are subject to the FICA. It stated that, in the context of the FICA, this “employment” includes “the statement of reasons, the maintenance, promotion, modification or repeal of the labour/employer relationship”.
(Rev Rul 2004-109, 2004-2 CB 258) In addition, an enterprise that has a loan or credit guarantee must be considered a “direct loan” (i.e.: a bilateral loan agreement entered into directly with a qualifying enterprise as a borrower that is not part of a syndicated loan, a loan granted by a financial institution in the course of normal commercial transactions or transactions in the securities or capital market) in accordance with the credit provisions expanded by $454 billion pursuant to Article 4003(b)(4), approve the total compensation and possible severance pay of certain senior managers and cooperation during a period of restriction described below. . . .