Section 1102(a)(2) specifically, but it's an amendment so essentially look at (36)(A)(viii)(II)(aa) or just look at p. 12 of the Senate engrossed bill.
Pay them whatever you want to do. Look at the definition of "payroll costs" in 1102, and then look at "Forgiveness" in 1106, which forgives debt for payroll costs. THey aren't going to look at the work done, they are going to look at your payment information to see how the money was used. All they will see are pay stubs, etc.
100% agreed. This is about us taking care of people and maximizing what we can do for them regardless of what they do for us. I look at this entirely as us having the power to get people paid for two months during this shit show and we have a responsibility to include as many people as possible in that benefit.
I need to look at it closer, but one thing I am seeing is the bold text: a lot of people are conflating the two sections. One pertains to obtaining a loan, and the other pertains to applying for loan forgiveness. Payroll costs is a commonly used term and is limited to payroll less than $100k. This is done to avoid inflating the amount of the loan obtained, and doesn't necessarily impact the amount of the debt forgiveness. On the other hand, payroll costs is also used to determine the amount of forgiveness. So long as you use the loan proceeds for payroll costs (salaries, commissions, 1099, etc.), then it is a permissible use for which the debt is forgivable. I am also absolutely exhausted but will be looking into this over the weekend and will chime in if the above is incorrect. But essentially, think of the $100k limitation as a way to avoid over-inflating loans for highly compensated employees, and not as important for the amount of forgiven debt.
Like my last post, this is a 2 step process. The first is getting a loan. It's insanely easy to get a loan (provided you are eligible). The next step is applying for loan forgiveness. This is a much more burdensome process because it will require a lot of paperwork. It's worth it, but it's not like obtaining the loan where you just say "I swear I'm good" and get money. The application for loan forgiveness will be processed in 60 days, not the application for a loan. They are giving away money.
I see it the same way and I also share in your exhaustion. Reading and processing all of this while talking to employees, bankers and others business leaders has been completely exhausting. I'm lucky I was just able to participate in a 2 hour zoom happy hour at work. it was much needed.
This is about finding a way to keep employees paid, and the conduit for doing so is through the employers. It's not about paying suppliers for goods (although you could do that if you want, it just wouldn't be forgivable debt)
OK that makes more sense, and from my perspective I expect to be forgiven, and frankly the time it takes to get forgiven is not that important since it all resets at the end of 2020. Right now the capital availability is more critical.
Keep an eye on SBA.gov. Practically speaking, I think it'll be a at least a week, and probably closer to 3. But you never know, they could have forms online this weekend. I've heard SBA lenders are having a big conference call Monday morning.
This is smart. The $350b will be gone very quickly. Jump on this now and get in line, otherwise you may get shut out
Yes, the other thing I would add to this is stay in touch with your banker. Make sure they connect with you and understand your needs. It is in their best interest to take care of their clients so make sure they know you are interested in getting to the front of that line for you and them. Make a connection with your banker as a human being. It is important for them to know you and how you care about your employees and how you see their role in helping your business and how much you appreciate them.
Yeah, it's exhausting staring at these details all day. I wish I have had a 2 hour break. I went to bed at midnight and was up at 330am because of this shit. The life of an associate. Yeah, as I've said above this a way to put money in the hands of employees and remove any incentive for employers to fire employees so as to put them on unemployment (query whether it's for Trump's unemployment numbers). So long as you use the funds for working capital uses (payroll, rent, mortgage interest, etc.), then the debt is forgiven. If you use it for other things, then you're on the hook with a low interest unsecured loan, which is also pretty nice. One thing to be careful of is that oen of the permissible uses of the loan is for "interest on any other debt obligations that were incurred before the covered period." However, that specific language is omitted in the forgiveness provisions. So paying interest on debt other than mortgages is not something for which the debt will be forgiven. Other than that, it aligns pretty well.
Slowest day of the last couple weeks was today. Yuck The company I just sold, which is a medical supply company, we sold the Canadian portion of the company. The last 9 their sales are up 1600%. Makes me a little sick to my stomach.
Another document with a CARES Act Summary... https://scalingup.com/wp-content/up...l-Business-Owner’s-Guide-to-the-CARES-Act.pdf
Info in here has been really helpful. One question: it's only 8 weeks of payroll forgiveness, right? Is it possible to lay of employees now until loan is confirmed and money in, and bring them back then? Or is there a deadline/threshold date that they have to have been on payroll?
You can bring them back. You’ll have to prove up the payroll retention requirements on the back end, not in receiving the loan. That’s my understanding at least.
Thanks. Any idea if hard deadline? I'm just seeing the vague "period" in my search but I assume there has to be a point by which they need to be rehired.
I don't and I am not sure one has been set yet. I am planning on keeping all of my employees, so I haven't focused on this. In fact I gave them a 45 minute speech on Friday on how much I value them and that we are all in this together.
This actually makes sense. If there was a hard one set already, it would incentive those to terminate employees until it actually mattered.
Payroll is measured up to February 15th, so it takes into account employees fired since then and does not reduce the amount of the loan. You're going to have to prove how the funds were used if you are seeking the debt forgiveness, so it's inherent that they will be rehired. There is no "deadline for rehiring" other than the expiration of the program at the end of June
It was enacted yesterday afternoon, and these things take some time. The law mandates the SBA to issue regulations within 15 days, which is extraordinarily fast for these things (not to mention unconstitutional), so while they are moving as fast as they can it will not be immediate. My guess is 2-3 weeks. I would continue checking on the following to see when they post information about applications and forms: https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources I would also reach out to your local SBA lender and begin talking to them. They are likely getting lots of calls, but you should probably make it aware that they should keep you in mind. Perhaps even explicitly ask to be at the top of their list of small businesses.
For the FFCRA and family leave, businesses who are working remotely still need to provide sick leave benefits? Language below specifies “employees whose workplaces are closed.” That doesn’t mean physical location only....it means to say that workplaces and business operations. Am I reading that right? For example, we’re operating fully remotely...still need to comply with the FFCRA, correct? These leaves are not available to employees with reduced hours, furloughed employees, or employeeswhose workplaces are closed. See questions 23-28. These leaves are not available to employees whose workplaces are closed due to a federal, state, or local shelter-in-place or stay-at-home orders, or due to business slowdowns. See question 23.
correct as long as you are less than 500 employees. FYI, you can deduct whatever you pay for FFCRA directly from your normal payroll tax set asides. For example we pay every two weeks, so depending upon how many days of FFCRA/family leave we pay to employees, we can completely take that out of our biweekly payroll tax.
thanks for confirming and the add’l info. They should’ve been more specific. Instead of “workplace” could’ve drafted with “businesses” or “business operations” I’m internal legal for a medium sized company and trying to wrap my head around this and everything else
This may help you. It is from my payroll company... On Tuesday, March 24, the Department of Labor (DOL) announced that the effective date of the leaves available through the Families First Coronavirus Response Act (FFCRA) will be April 1, 2020. We are still awaiting further clarification from the IRS with regard to the specifics of FFCRA and we will be sending out further communication as soon as the details have been released. Please see the key takeaways below. Paid Sick Leave for Workers For COVID-19 related reasons, employees receive up to 80 hours of paid sick leave and expanded paid child care leave when employees' children's schools are closed or child care providers are unavailable. Complete Coverage Employers receive 100% reimbursement for paid leave pursuant to the Act. · Health insurance costs are also included in the credit. · Employers face no payroll tax liability. · Self-employed individuals receive an equivalent credit. Fast Funds Reimbursement will be quick and easy to obtain. · An immediate dollar-for-dollar tax offset against payroll taxes will be provided · Where a refund is owed, the IRS will send the refund as quickly as possible Small Business Protection Employers with fewer than 50 employees are eligible for an exemption from the requirements to provide leave to care for a child whose school is closed, or child care is unavailable in cases where the viability of the business is threatened. Easing Compliance · Requirements subject to 30-day non-enforcement period for good faith compliance efforts. To take immediate advantage of the paid leave credits, businesses can retain and access funds that they would otherwise pay to the IRS in payroll taxes. If those amounts are not sufficient to cover the cost of paid leave, employers can seek an expedited advance from the IRS by submitting a streamlined claim form that will be released next week. Background The Act provided paid sick leave and expanded family and medical leave for COVID-19 related reasons and created the refundable paid sick leave credit and the paid child care leave credit for eligible employers. Eligible employers are businesses and tax-exempt organizations with fewer than 500 employees that are required to provide emergency paid sick leave and emergency paid family and medical leave under the Act. Eligible employers will be able to claim these credits based on qualifying leave they provide between the effective date and December 31, 2020. Equivalent credits are available to self-employed individuals based on similar circumstances. Paid Leave The Act provides that employees of eligible employers can receive two weeks (up to 80 hours) of paid sick leave at 100% of the employee's pay where the employee is unable to work because the employee is quarantined, and/or experiencing COVID-19 symptoms, and seeking a medical diagnosis. An employee who is unable to work because of a need to care for an individual subject to quarantine, to care for a child whose school is closed or child care provider is unavailable for reasons related to COVID-19, and/or the employee is experiencing substantially similar conditions as specified by the U.S. Department of Health and Human Services can receive two weeks (up to 80 hours) of paid sick leave at 2/3 the employee's pay. An employee who is unable to work due to a need to care for a child whose school is closed, or child care provider is unavailable for reasons related to COVID-19, may in some instances receive up to an additional ten weeks of expanded paid family and medical leave at 2/3 the employee's pay. Paid Sick Leave Credit For an employee who is unable to work because of Coronavirus quarantine or self-quarantine or has Coronavirus symptoms and is seeking a medical diagnosis, eligible employers may receive a refundable sick leave credit for sick leave at the employee's regular rate of pay, up to $511 per day and $5,110 in the aggregate, for a total of 10 days. For an employee who is caring for someone with Coronavirus, or is caring for a child because the child's school or child care facility is closed, or the child care provider is unavailable due to the Coronavirus, eligible employers may claim a credit for two-thirds of the employee's regular rate of pay, up to $200 per day and $2,000 in the aggregate, for up to 10 days. Eligible employers are entitled to an additional tax credit determined based on costs to maintain health insurance coverage for the eligible employee during the leave period. Child Care Leave Credit In addition to the sick leave credit, for an employee who is unable to work because of a need to care for a child whose school or child care facility is closed or whose child care provider is unavailable due to the Coronavirus, eligible employers may receive a refundable child care leave credit. This credit is equal to two-thirds of the employee's regular pay, capped at $200 per day or $10,000 in the aggregate. Up to 10 weeks of qualifying leave can be counted towards the child care leave credit. Eligible employers are entitled to an additional tax credit determined based on costs to maintain health insurance coverage for the eligible employee during the leave period. Prompt Payment for the Cost of Providing Leave When employers pay their employees, they are required to withhold from their employees' paychecks federal income taxes and the employees' share of Social Security and Medicare taxes. The employers then are required to deposit these federal taxes, along with their share of Social Security and Medicare taxes, with the IRS and file quarterly payroll tax returns (Form 941 series) with the IRS. Under guidance that will be released next week, eligible employers who pay qualifying sick or child care leave will be able to retain an amount of the payroll taxes equal to the amount of qualifying sick and child care leave that they paid, rather than deposit them with the IRS. The payroll taxes that are available for retention include withheld federal income taxes, the employee share of Social Security and Medicare taxes, and the employer share of Social Security and Medicare taxes with respect to all employees. If there are not sufficient payroll taxes to cover the cost of qualified sick and child care leave paid, employers will be able file a request for an accelerated payment from the IRS. The IRS expects to process these requests in two weeks or less. The details of this new, expedited procedure will be announced next week. Examples If an eligible employer paid $5,000 in sick leave and is otherwise required to deposit $8,000 in payroll taxes, including taxes withheld from all its employees, the employer could use up to $5,000 of the $8,000 of taxes it was going to deposit for making qualified leave payments. The employer would only be required under the law to deposit the remaining $3,000 on its next regular deposit date. If an eligible employer paid $10,000 in sick leave and was required to deposit $8,000 in taxes, the employer could use the entire $8,000 of taxes in order to make qualified leave payments and file a request for an accelerated credit for the remaining $2,000. Equivalent child care leave and sick leave credit amounts are available to self-employed individuals under similar circumstances. These credits will be claimed on their income tax return and will reduce estimated tax payments. Small Business Exemption Small businesses with fewer than 50 employees will be eligible for an exemption from the leave requirements relating to school closings or child care unavailability where the requirements would jeopardize the ability of the business to continue. The exemption will be available on the basis of simple and clear criteria that make it available in circumstances involving jeopardy to the viability of an employer's business as a going concern. Labor will provide emergency guidance and rulemaking to clearly articulate this standard. Non-Enforcement Period Labor will be issuing a temporary non-enforcement policy that provides a period of time for employers to come into compliance with the Act. Under this policy, Labor will not bring an enforcement action against any employer for violations of the Act so long as the employer has acted reasonably and in good faith to comply with the Act. Labor will instead focus on compliance assistance during the 30-day period. For More Information For more information about these credits and other relief, visit Coronavirus Tax Relief on IRS.gov. Information regarding the process to receive an advance payment of the credit will be posted next week.
Got an email from a research company that they're using my product for COVID 19 Clinical Trials. Thought that was pretty neat
im pretty sure if I go to hell Satan will make me fill out personal financial disclosure statements 24/7
For the loan forgiveness in the PPP, even if my landlord has offered my 1/2 rent for April, would I need to pay the full amount to be eligible for forgiveness?
Great question. I suspect like employees you will need to submit actual expenses to be forgiven based on their formulas, but that is just an educated guess.
Lot's of good info here from a large LI based Law Firm... COVID-19 and WORKPLACE IMPACT FAQS The COVID-19 pandemic has had an unprecedented impact on employers of all sizes in New York and nationwide. This FAQ addresses common workforce-related questions raised by the changing employment law landscape resulting from COVID-19. Of course, issues that your company may face will depend on many factors, including the nature of your work, operational concerns, size, regulatory requirements and other factors specific to your company and industry. Workforce Reductions 1. Under Executive Order 202.6, what businesses are considered essential businesses and not required to reduce 100% of their workforce from working onsite? The Empire State Development Corporation has issued guidance regarding what fields are considered essential businesses here. If your company does not fit into one of the fields listed in the guidance, you can request an essential business designation by submitting the following form here. Please note, we have been advised that there is a long wait period prior to receiving a decision regarding essential business designations. 2. What is the difference between a layoff and a furlough? A furlough is a temporary, unpaid leave, or may include a reduction in hours or working days. While an employee is on a full time furlough they will remain on the payroll but will not receive wages and are not permitted to perform any work. Employers need to be sure that furloughed employees do not perform any “off the clock” work. Employees must be appropriately compensated for any such work. Also, subject to certain exceptions, exempt employees must receive the full salary for any week in which the employee performs any work, regardless of the number of days or hours worked. Many insurance carriers are being more flexible in permitting employees to stay on the employer’s health insurance while furloughed. Employers should check with the carriers for more details. A layoff is a full separation from the company, including removing an employee from payroll and generally requires the employee to go on COBRA. Health insurance questions should be addressed to the employer’s carrier, as there may be alternatives available. 3. Are employees eligible for unemployment benefits if they are laid off or furloughed? Employee can apply for unemployment benefits if they have been laid off or furloughed due to the Coronavirus. New York has recently passed legislation that removed the one-week waiting period before an employee is eligible for benefits. Therefore, employees can apply for benefits starting on the first day of being furloughed or laid off. 4. What kind of notice must be provided when a company is temporarily suspending operations due to COVID-19? The federal Worker Adjustment and Retraining Notification Act contains 60-day notice requirements for employers with 100 or more employees. The New York Worker Adjustment and Retraining Notification Act (“WARN Act”) is more onerous and requires employers of 50 or more employees to provide certain notices to employees, employee representatives, New York Department of Labor, and the Local Workforce Investment Board. The WARN Act requires businesses to provide at least 90 days’ notice prior to a plant closing, mass layoff, relocation, or other covered reduction in work hours: Plant closings affecting 25 or more workers Mass layoffs involving 25 or more full-time workers (if the 25 or more workers make up at least 33% of all the workers at the site) Mass layoffs involving 250 or more full-time workers Certain other relocations and covered reductions in work hours If a company does not fall under the WARN Act, but is going to reduce its workforce, there may be other obligations it must fulfill prior to initiating a layoff. Sick Employees in the Workplace 1. Can a company ask an employee to stay home or leave work if they exhibit symptoms of COVID-19? Yes, the Center for Disease Control (“CDC”) advises that employees who show symptoms of influenza-like illness at work during a pandemic should leave the workplace. The Equal Employment Opportunity Commission (“EEOC”) has confirmed that advising employees to go home is permissible and not considered disability-related if the symptoms presented are similar to COVID-19. 2. Can a company take an employee’s temperature at work? Yes, the EEOC has recently released guidance stating that while measuring an employee’s body temperature would usually be considered a medical examination, that because the CDC and state/local health authorities have acknowledged community spread of COVID-19 and issued attendant precautions, employers may measure employees’ body temperature. However, employers should be aware that some people with COVID-19 do not have a fever. 3. What should a company do if an employee tests positive for COVID-19? If an employee tests positive, the CDC recommends that employers inform fellow employees of their possible exposure to COVID-19 in the workplace but maintain confidentiality as required by the ADA. The fellow employees should then self-monitor for symptoms (i.e., fever, cough, or shortness of breath). The company should also follow the Environmental Cleaning and Disinfection Recommendations here. 4. Can a company require a positive COVID-19 test result or healthcare provider’s note to validate an employee’s illness? According to the CDC, (notwithstanding many employers’ usual policies to the contrary) employers should not require a positive COVID-19 test result or a healthcare provider’s note for employees who are sick to validate their illness, qualify for sick leave, or to return to work. Healthcare provider offices and medical facilities may be extremely busy and not able to provide such documentation in a timely manner. 5. How can a company implement social distancing policies and practices in the workplace? If your company is an essential business and is still having employees report to the workplace, the CDC recommends the following strategies for social distancing: Implementing flexible worksites (e.g., telework); Implementing flexible work hours (e.g., staggered shifts); Increasing physical space between employees at the worksite; Increasing physical space between employees and customers (e.g., drive through, partitions); Implementing flexible meeting and travel options (e.g., postpone non-essential meetings or events); Downsizing operations; Delivering services remotely (e.g. phone, video, or web); and/or Delivering products through curbside pick-up or delivery. Families First Coronavirus Response Act 1. What does the Families First Coronavirus Response Act (“FFCRA”) generally cover regarding the workplace? The FFCRA established the Emergency Family and Medical Leave Expansion Act (“EFMLEA”) which expands and provides for paid leave under the Family Medical Leave Act for limited reasons relating to the coronavirus. FFCRA also established the Emergency Paid Sick Leave Act (“EPSLA”) that provides for paid sick leave for limited qualifying reasons relating to the coronavirus. 2. When does EFMLEA and EPSLA take effect? EFMLEA and EPSLA are effective on April 1, 2020, and apply to leave taken between April 1, 2020, and December 31, 2020. 3. Are the EFMLEA and EPSLA paid leave provisions retroactive? No. 4. Which employers are impacted by the FFCRA’s EFMLEA and EPSLA? EFMLEA and EPSLA impact employers with fewer than 500 employees. The bill authorizes the Secretary of the Department of Labor to issue regulations to: (1) exclude certain healthcare providers and emergency responders from the definition of eligible employee; and (2) exempt small businesses with fewer than 50 employees when it would jeopardize the viability of the business. The Department of Labor states that if you want to seek a small business exemption, that a company should document why the business meets the criteria that will be set forth by the Department in future regulations. 5. Are tax credits available for employers to offset the cost of the paid leaves available under the FFCRA? Employers are responsible to pay for the paid time covered under the FFCRA; however, the Act provides for refundable tax credits to offset the cost of compliance. Employers should keep accurate records of all such payments to employees. 6. If an employee is home caring for a child due to the child’s school being closed or childcare provider being unavailable due to a public health emergency, are they eligible for EFMLEA and EPSLA? Yes, the employee would be eligible for both types of leave, but the leave would be capped for a total of 12 weeks of paid time. EPSLA would provide paid time for the initial two week period of leave (covering the unpaid period of EFMLEA), and the remaining ten weeks would be covered by EFMLEA. The amount of compensation available to employees is address below. Please note that an employee can only receive the additional ten weeks of expanded family and medical leave under the EFMLEA for leave to care for a child whose school or place of care is closed or unavailable, due to COVID-19 related reasons. 7. Are overtime hours included in an employee’s regular rate of pay under EFMLEA and EPSLA? The EFMLEA requires a company to pay an employee for hours the employee would have been normally scheduled to work, even if that were more than 40 hours in a week. However, EPSLA requires that paid sick leave be paid only up to 80 hours over a two-week period. For example, an employee who is scheduled to work 50 hours a week may take 50 hours of paid sick leave in the first week and 30 hours of paid sick leave in the second week. In any event, the total number of hours paid under EPSLA is capped at 80. If the employee’s schedule varies from week to week, please see the answer to FAQs 12 and 19, because the calculation of hours for a full-time employee with a varying schedule is the same as that for a part-time employee. Please note that pay does not need to include a premium for overtime hours under either EPSLA or EFMLEA. 8. Are there posting requirements for the FFCRA? Yes, each covered employer must post a notice of the FFCRA requirements in a conspicuous place on its premises. An employer may satisfy this requirement by emailing or direct mailing this notice to employees, or posting this notice on an employee information internal or external website. The required poster can be found here. Emergency Family and Medical Leave Expansion Act 9. How does an employee qualify for EFMLEA? An employee must be employed for at least 30 days to be eligible for leave. The Department of Labor has issued regulations explaining that an employee is considered to be employed for at least 30 calendar days if the employee has been on the payroll for the 30 calendar days immediately prior to the day leave would begin. For example, if an employee wants to take leave on April 1, 2020, the employee would need to have been on payroll as of March 2, 2020. 10. What is a qualifying event for eligibility under the EFMLEA? Paid leave is available under the EFMLEA when employees are unable to work (or telework) because of a need to care for a child due to the child’s school being closed or childcare provider being unavailable due to a public health emergency. A public health emergency is defined in the Act as an emergency with respect to COVID-19 declared by a federal, state, or local authority. 11. Is leave paid under the EFMLEA? The first 10 days of an employee’s leave may be unpaid, but an employee may elect to use any vacation, personal or sick leave during this period. If the need for leave continues beyond the initial 10 day period, then the leave must be paid at a rate of two-thirds (2/3) of the employee’s regular rate of pay, to a capped amount of $200 per day and $10,000 in total. Additionally, if the employee qualifies, the initial unpaid 10 day period could also be covered under the EPSLA. 12. How does an employer count hours worked by part-time employees for EFMLEA? A part-time employee is entitled to leave for the employee’s number of work hours in a two-week period. Therefore, a company calculates hours of leave based on the number of hours the employee is normally scheduled to work. If the normal hours scheduled are unknown, or if the part-time employee’s schedule varies, a company may use a six-month average to calculate the average daily hours. 13. Are all leaves covered under the Family Medical Leave Act now paid? No. See FAQ number 10 for eligibility requirements. 14. Are furloughed employees eligible for paid leave under EFMLEA? At this time, it is unclear if furloughed employees qualify. We are hopeful that the Department of Labor will issue guidance clarifying eligibility. Emergency Paid Sick Leave Act 15. How does an employee qualify for paid sick leave under EPSLA? Unlike the EFMLEA, all employees are eligible to take paid sick leave under the EPSLA regardless of how long they have been employed, so long as they also have a qualifying event. 16. What events qualify employees for paid sick leave? Paid sick leave will be available to employees under the following situations when they are unable to work (or telework): a) The employee is subject to a federal, state or local quarantine or isolation order related to COVID-19. b) The employee has been advised by a healthcare provider to self-quarantine because of concerns related to COVID-19. c) The employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis. d) The employee is caring for an individual who is subject to an order as described in subparagraph (a) or has been advised as described in subparagraph (b). e) The employee is caring for the employee’s child because the child’s school or childcare provider is closed or unavailable due to COVID-19 precautions. f) The employee is experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretary of the Treasury and the Secretary of Labor. 17. How much paid sick leave are eligible employees entitled to take? If an employee qualifies for EPSLA, the employee would be entitled to up to 80 hours of paid sick leave, and a part-time employee would be entitled to time equal to the number of hours the employee works over a two-week period. 18. How much will employees be paid during the paid sick leave period? Employees taking paid sick leave are entitled to be paid at their regular rate of pay, capped at $511 per day and $5,110 in total, for uses described in paragraphs (a), (b), or (c); and $200 per day and $2,000 in the aggregate for uses described in paragraphs (d), (e), or (f). 19. How does an employer count hours worked by part-time employees for EPSLA? A part-time employee is entitled to leave for the employee’s number of work hours in a two-week period. Therefore, a company calculates hours of leave based on the number of hours the employee is normally scheduled to work. If the normal hours scheduled are unknown, or if the part-time employee’s schedule varies, a company may use a six-month average to calculate the average daily hours. Such a part-time employee may take paid sick leave for this number of hours per day for up to a two-week period. 20. Are furloughed employees eligible for paid leave under EPSLA? At this time, it is unclear if furloughed employees qualify. We are hopeful that the Department of Labor will issue guidance clarifying eligibility New York State Emergency Sick Leave 1. What is the NYS Emergency Sick Leave? On March 18, 2020, New York Governor Andrew Cuomo signed emergency legislation guaranteeing certain job protection and pay for New York employees who are quarantined as a result of coronavirus (COVID-19). 2. When did the NYS Emergency Sick Leave take effect? The law took effect immediately upon being signed on March 18, 2020. 3. What does the NYS Emergency Sick Leave cover? The law covers employees subject to mandatory or precautionary orders of quarantine or isolation issued by the New York Department of Health, local board of health, or any other government entity duly authorized to make such an order relating to COVID-19. 4. Is the leave paid? Yes, but how much paid sick time an employee is entitled to depends on an employer’s size and annual income. The breakdown of pay is as follows: Employers with 10 or fewer employees (as of Jan. 1, 2020) and a net income of less than $1 million must provide unpaid sick leave until the termination of any quarantine or isolation. During this period, an employee may be eligible for Paid Family Leave benefits and/or disability benefits. Employers with 11-99 employees (as of Jan. 1, 2020) and those with 10 or fewer employees and a net income greater than $1 million, must provide at least 5 days of paid sick leave, and then unpaid sick leave until the termination of any quarantine or isolation. After the five days of paid sick leave, an employee shall be eligible for Paid Family Leave benefits and disability benefits, subject to a cap of $2,884.62 per week. Employers with 100 or more employees (as of Jan. 1, 2020) and all public employers must provide at least 14 days of paid sick leave during any order of quarantine or isolation. 5. What if an employee independently decides to quarantine, are they eligible for benefits? No. This new law provides benefits in cases where an individual is under an order of quarantine – either mandatory or precautionary. Entities that may issue an “order” include the State of New York, New York State Department of Health, local Board of Health or any government entity authorized to issue such order. 6. If an employee is able to work from home, but is under a mandatory or precautionary quarantine, are they eligible for benefits under this law? No, if an employee is not showing symptoms and is physically able to work through remote access or similar means then the employee is not eligible for quarantine leave. 7. How does an employee apply for paid family leave benefits if the employee is self-quarantining? New York State has created a website to explain how to apply for family benefits, including the necessary documentation and forms here. Go to the “How to Apply” section for more information. 8. If an employee is subject to a quarantine or isolation order as a result of non-business travel, are they eligible under the NYS Emergency Sick Leave? No, employees who are subject to quarantine or isolation as a result of non-business travel to a country identified as level 2 or 3 risk by the Center for Disease Control are excluded from this law. Employees excluded due to non-business travel would be eligible to use accrued leave provided by the employer, if any; or if the employee does not have sufficient accrued leave, the employee can use unpaid sick leave for the duration of the mandatory or precautionary quarantine or isolation. 9. Is the NYS Emergency Sick Leave in addition to the benefits provided under the FFCRA? The New York State law states that it shall supplement, but not be in addition to, the benefits provided to employees under the under the federal legislation.
Here are a few relevant Links, webinars and documents which should prove valuable in managing and conquering our current situation. The attached documents are a Summary of the Cares Act from Ray Fincken (TA 12) and a Coronavirus Loan Guide from the US Chamber of Commerce from Stu Mordfin (899) and Davi Tserpelis. Relevant Links: Funding Relief Options – Mazars USA https://mazarsusa.com/ledger/fundin...Y20&esid=75fae781-1471-ea11-a811-000d3a33fb82 Paycheck Protection Programs – Mazars USA https://mazarsusa.com/ledger/payche...Y20&esid=75fae781-1471-ea11-a811-000d3a33fb82 Expanded Restructuring Options for Small Business – Nixon Peabody https://www.nixonpeabody.com/en/ide...ource=interaction&utm_campaign=bankruptcy-law Here are a few Webinars which may be valuable for you to attend: From the SBA and Linda Towler -Webinar on Applying for SBA Disaster Loans or EIDL's https://www.eventbrite.com/e/webina...ter-loans-tickets-101248557160?aff=erelexpmlt From Marcum – Tuesday, March 31 | 2:00 PM EDT How Might the Value of Your Business be Impacted as a Result of the Coronavirus Crisis Register Tuesday, March 31 | 3:30 PM EDT Tax Implications of the Coronavirus Stimulus Bill for Individuals and Businesses Register
one thing i haven’t really gotten a firm confirmation on... can i apply for both EIDT and PPP? the language of PPP seems to indicate you cannot have any other SBA loan, but the language mentions something about “for the same purpose”
i wonder if you can do PPP now, and then apply for further assistance later? it’s starting to look like we’re going to be closed for longer than 2 weeks. we may need more funding than allowable by PPP and as far as i can tell, the PPP loan is the important one right now because it’s basically free money. however, the longer this drags out, it’ll become clear that a lot of businesses are going to struggle once those funds are used up and the doors aren’t still open
Forgiveness is tied to the how the funds are used and the amount of the loan is based on payroll costs--not rent. So the fact you are getting a discount doesn't really matter in the eyes of the forgiveness statute. "Payroll costs" is defined relatively broadly by the statute, so some creativity could be handy, depending on the circumstances. Similarly, while prepaying mortgage interest isn't a forgivable use, that same limitation doesn't apply to prepaying rent.