COVID-19 Resource Hub
Many businesses are facing unprecedented challenges during this COVID-19 pandemic. We have gathered some resources to help you keep up to date with the ever changing rules and regulations in order to better navigate this difficult time.
Understanding ARPA PPP, Tax Credits and Upcoming Legislation
Our team of experts breaks down some of the most important aspects of ARPA, PPP and tax credits. We cover how these, and proposed legislation from the new administration, can impact business.
PPP Loan Forgiveness Update Webinar
We covered updates to the Paycheck Protection Program, HR 7010 and how to apply for loan forgiveness
During this webinar we discussed:
- What does HR 7010 mean to the PPP Loan Forgiveness program
- Understanding the revised PPP Loan Forgiveness Application
- How the CARES Act impacts your quarterly 941
- Upcoming legislation and guidance on what to do
Revised PPP Loan Forgiveness Application and Instructions:
- S-Corp owners cannot include Health ins in payroll costs
- Safe Harbor dates for Salary/Hourly Wage and FTE reductions to forgiveness are the earlier of Dec 31st or the date of your application
New EZ PPP Loan Forgiveness App/Instructions (available for):
- self-employed and have no employees
- Employers that did not reduce the salaries or wages of their employees by more than 25% and did not reduce the number or hours of their employees
Employers that experienced reductions in business activity as a result of health directives related to COVID-19 and did not reduce the salaries or wages of their employees by more than 25%.
PPP allows loan forgiveness for payroll costs for up to $100,000 annualized per employee, or $15,385 per individual over the eight-week period. The new interim final rule establishes the 24-week maximum for full loan forgiveness at $46,154 per individual.
For owners that file a Schedule C or Schedule F tax return, owner forgiveness compensation is calculated for the eight-week period as 8 ÷ 52 × 2019 net profit, up to a maximum of $15,385. However, for the 24-week period, the forgiveness calculation is limited to 2.5 months’ worth (2.5 ÷ 12) of 2019 net profit, up to $20,833.
SBA Loans vs. Credit/Deferrals Webinar
April 17th ,2020
Need help deciding between a PPP loan and credit/deferrals? We discuss the best options for your business.
With this webinar we explored the following topics:
- An overview of the CARES Act
- Information and requirements of SBA Loans
- EIDL Grants and Loans
- Retention Credit
- Employer Social Security Tax Deferment
- Comparisons and Combinations
CARES Act Information
Below are some guides to help you navigate some of the newest legislation
COVID-19 Resources and Employer Response Webinar
Our Director of HR, Andrea Porter and President, Jack Biltis help clarify who is impacted and learn great tips on how to take care of your employees and get your business through the COVID-19 pandemic.
With this webinar we explored the following topics:
- What we are doing to help our clients through these difficult times
- Helpful financial resources at the state and federal level
- Your rights and responsibilities as business owners
- Answers to common questions about the impact of COVID-19 on payroll, benefits etc…
HR Responses and Best Practices
A deep dive into the HR issues surrounding the COVID-19 outbreak including complaince and best practices.
In this video we discuss:
- How to handle reduction in pay
- What is the difference between furloughs and layoffs?
- What if an employee refuses available work?
- How to handle Coronavirus in the workplace
- Shelter in Place and Essential Services
Compliance With the Families First Coronavirus Response Act
Information about how the Families First Act will impact your business.
In this video we discuss:
- How Does The Sick Pay and FMLA Work?
- How Do Tax Credits Offset Sick Pay Payments?
- How Our Software Will Automate the Process
Federally, and in the majority of states including Arizona, employers must pay hourly non-exempt employees only for hours actually worked. Employers are not required to pay those employees during an office closure, if an employee chooses to stay home, or even if the employer requires an employee to stay home based on illness.
California does have Reporting Pay requirements, which may come into play for hourly employees if they are sent home by the employer.
Salaried exempt employees must receive full salary for any week in which any work was performed. Employers may reduce salary for the employee’s absence due to illness only for a full-day absence during which no work was performed (not for a partial day absence). For an office closure, the employer may only reduce the salary if no work was performed for the entire workweek.
National employment law firm Ogletree Deakins has posted guidance for employers regarding sending employees home, travel concerns, returning to work, paid leave, wage and hour, attendance, and more:
Additionally, the CDC has posted interim guidance for businesses.
Mar 23 – Loans – If you are unable to get a bank loan from your main bank, you might consider the following.
• Disaster SBA loan up to $2M. Requires claim of some business loss. Current rate is 3.25%. This is administered by the government directly so the application process may take 30-45 days. For more information, go to https://disasterloan.sba.gov/ela/Information/Index
• Non-Disaster SBA loan up $10M. Current rates are Prime + 2.75%…so around 6%. This is a 10-year loan. This is backed by government guarantees but administered through private lenders & banks, so the process should be faster. Waiting on congress to approve a new bill, but the lender I spoke with expects that they will be able to underwrite and fund within 15 days after legislation is passed this week. https://www.sba.gov/funding-programs/loans/lender-match
• Both SBA loans are based on your annualized operating expenses (payroll, utilities, rent, credit card payments…) don’t require collateral, and have relaxed underwriting guidelines. Congress is considering legislation to forgive some of the loan amount (to be determined) if you don’t lay any employees off. There is no pre-payment penalty for early payment.
Layoff and Partial Unemployment
Mar 23 – State Unemployment Insurance – most states allow for employees to file claims even if they have only reduced hours. Here are the links for our most common states.
Mar 18 – We are getting many questions about office closures and short-term layoffs. Generally speaking, employers only have to pay hourly workers for hours actually worked or when they use available paid time off benefits. Salaried employees typically must be paid for any week in which work is performed, regardless of any office closure; however, if no work is performed for an entire workweek, salary is not due for that week.
Employees that experience a loss in wages, whether due to office closure, furlough, layoff, or termination of employment, can apply for unemployment insurance benefits through their state’s unemployment office; benefits and waiting periods vary by state. The Act includes federal funding to expand unemployment benefits.
If your company is considering any of these options, you may want to check with your state’s unemployment office; some states have work-share programs available where employers reduce hours rather than laying off workers.
The Act leaves many details in question and we will bring you answers as soon as we have more information.
Mar 23 – Income tax filing – The IRS and most states are giving additional time to file and pay personal taxes. While each state has different dates, here’s what the IRS has done so far
• Personal filing and tax payment deadline extended from April 15 to July 15.
• Estimated personal or corporate income quarterly estimated tax payments that were due on April 15 are now due July 15.
• C-Corp filing extended from April 15 to July 15…unsure about if tax payment deadline is extended if taxes are owed
• S-Corp and Partnership were due March 16
• Normal filing extension rules apply
Mar 18 – According to the Families First Coronavirus Response Act, There are caps in place that correspond to new tax credits for these payments employers make. TAG will have the appropriate pay codes tied to the various types of tax credits available.
Mar 23 – Sick Pay – As detailed in our last email, as of April 2, you will be able to use the pay codes as Sick-C19Self and Sick-C19Family to pay employees up 2 weeks for themselves and up to 12 weeks if taking care of homebound children (2/3rds pay). These amounts will offset against your payroll tax withholding on your payroll invoice. This generally only applies if an employee has Corona, is in government mandated isolation (all of California, NY and Dallas at this point…but will likely include most states.), or is watching a home-bound child. More info can be found in our prior emails.
Mar 18 – According to the Families First Coronavirus Response Act, The basic requirements for employers with less than 500 employees include:
Paid sick leave of up to 80 hours for employees unable to work/telework due to their own illness/quarantine related to COVID-19 (paid at regular rate of pay); because the employee is caring for an individual who is ill/quarantined due to the virus (paid at 2/3 pay); or because the employee is caring for a child if school or child care is closed (paid at 2/3 pay; possible exemption for employers with less than 50 employees for this leave reason only).
Public Health Emergency Leave for up to 12 weeks for employees that cannot work/telework due to the need to care for a minor child if the school is closed due to COVID-19. The leave is unpaid for the first 10 days and then paid at 2/3 pay thereafter. Possible exemptions for businesses with less than 50 employees and for certain healthcare workers.
In this post we provide several resources to help you navigate your business and workforce through this pandemic. Please check back regularly for updates. Future entries will be date marked for easy reference…
3/23 – The Association of General Contractors has put together a COVID-19 resource page, including links to several sites and helpful forms for construction contractors such as a sample toolbox talk and sample notice of delay letter, and they also made their 3/20 webinar for the construction industry available for viewing.
3/23 – The Office of Federal Contract Compliance Programs (OFCCP) issued a National Interest Exemption memorandum to facilitate response efforts for COVID-19; the OFCCP will grant a limited, three-month exemption and waiver from some of the requirements of the laws administered by the agency.
3/23 – The Federal Motor Carrier Safety Administration (FMCSA) has issued an emergency declaration relaxing the hours truckers who are transporting coronavirus supplies may work.
3/23 – National employment law firm Fisher Phillips has transitioned their home page to serve as a resource center where employers can access a wealth of relevant resources, including key templates and forms, such as manager talking points, a model announcement to employees about a positive test, and an authorization to disclose diagnosis. They have also created a comprehensive FAQ document that is being continuously updated.
3/23 – The U.S. Department of Labor has resources to help workers and employers prepare for the COVID-19 virus, including information on wage and hour laws, links to state unemployment offices, and OSHA guides.
3/23 – The U.S. Department of Homeland Security announced that it will defer the requirement for employers to review, in person, Form I-9 documents. The change applies only to those employers that have instituted remote work.
3/23 – E-Verify is extending the timeframe to take action to resolve Social Security Administration (SSA) Tentative Nonconfirmations (TNCs) due to SSA office closures to the public. E-Verify is also extending the timeframe to take action to resolve Department of Homeland Security (DHS) TNCs in limited circumstances when an employee cannot resolve a TNC due to public or private office closures.
3/23 – California Coronavirus 2019 (COVID-19) Resources for Employers and Workers
3/23 – The California Stay At Home Order – Breaking It Down (construction is an essential service).
3/23 – The EEOC has confirmed that due to community spread of COVID-19, employers can take employees’ temperatures.
3/23 – Ogletree Deakins’ Q&A on The Top 10 Employee Benefits Issues related to COVID-19.
3/23 – Florida Department of Economic Opportunity Reemployment Assistance (unemployment).
3/23 – Treasury, IRS and Labor announce plan to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing Coronavirus-related leave. The IRS has created a dedicated site for coronavirus tax relief.
3/23 – The Society for Human Resources Management has created a special hub page that non-SHRM members can use to help navigate the various resources available.
3/19 – Strategies for California Employers to Supplement Employee Wages Through Public Benefits: Many businesses will inevitably be forced to reduce employees’ hours and thus their compensation. As a result, employees may be eligible to file for partial unemployment benefits. There are a number of other potential options available to employees in California.
3/19 – UnitedHealthcare has a free emotional support health line staffed with professionals to connect people to resources. It will be open 24 hours a day, seven days a week.
3/17 – We highly recommend you review the Small Business Administration’s coronavirus page that includes links to their Economic Injury Disaster Loan Program (targeted, low-interest loans to small businesses and non-profits that have been severely impacted by the Coronavirus), Guidance for Businesses and Employers, SBA Products and Resources, Government Contracting, and directory to Local Assistance.
3/17 – White House recommendations to slow the spread of coronavirus include working from home whenever possible, avoiding social gatherings of more than 10 people, and avoiding discretionary travel, among others.
CDC Resources for Businesses and Employers includes Cleaning and Disinfection Recommendations and Interim Guidance, such as encouraging sick employees to stay home, performing routing cleaning, and recommendations for creating an infectious disease outbreak response plan.
CDC Travelers’ Health site identifies and provides guidance regarding travel to countries at Level 2 (Practice Enhanced Precautions) and Level 3 (Avoid Nonessential Travel).
Coronavirus Disease 2019 (COVID-19) is the CDC’s main site on COVID-19 with information about the virus including symptoms, testing, and FAQ’s and also includes a link for the Latest Updates on This Outbreak.
The U.S. Department of Labor has compiled Coronavirus Resources on Workplace Safety, Wages/Hours/Leave, and other related news and resources.
OSHA has issued Guidance on Preparing Workplaces for COVID-19 that includes steps to reduce workplace exposure, recommendations to develop a response plan, and implementing workplace controls.