COVID-19 Resource Center
Essential Resources for Employers
Together we’ll get though this.
During this uncertain time, we are all looking for answers. So we are curating all the information and resources we have to share with you. We are constantly updating this page in response to the rapidly changing legislation and resources available.
Your COVID-19 Community
Watch the COVID-19 HR Webinar hosted by Kara Govro, Senior Legal Editor, from April 14th, 2020. This webinar will cover new regulatory updates and FAQs.
Watch the COVID-19 HR Webinar hosted by Kara Govro, Senior Legal Editor, from March 31st, 2020. This webinar will cover updates to the most concerning issues employers face.
Watch the COVID-19 HR Webinar hosted by Kara Govro, Senior Legal Editor, from March 23rd, 2020. This webinar will guide you on best practices and what to expect if current situations escalate.
During this unprecedented time you need information about Health and Safety precautions in the workplace, Best Practices for a Telecommuting Workforce, FFCRA and other Applicable Leave, Furlough and Layoff documentation. Our resources are constantly being updated in reponse to the rapidly changing
Get access to up-to-date resources you need including:
– Blog Posts
– Files and Templates
– Frequently Asked Questions
– State and Federal Resources and Updates
Resources for your business
AICPA Request guidance on payroll tax deferral
The AICPA on Wednesday sent a letter to Treasury and the IRS requesting guidance on the recent presidential memorandum deferring some employee payroll taxes until next year. The memorandum, issued by President Donald Trump on Saturday, defers the withholding, deposit, and payment of the employee portion of the old-age, survivors, and disability insurance (OASDI) tax under Sec. 3101(a) and Railroad Retirement Act Tier 1 tax under Sec. 3201 for any employee whose pretax wages or compensation during any biweekly pay period generally is less than $4,000. It applies to payroll taxes on wages paid from Sept. 1 through Dec. 31, 2020.
The AICPA’s letter, addressed to David Kautter, Treasury’s assistant secretary for tax policy, and Charles Rettig, IRS commissioner, requests guidance on several issues related to how the deferral will be implemented.
Government Assisted Programs Comparison
There are now six programs to assist businesses survive COVID-19. To help make them a little easier to navigate, linked below is a comparison chart comparing:
FFCRA Credit (EPSL & EFMLA)
Paycheck Protection Program (PPP) Loan
Economic Injury Disaster Loan (EIDL)
Employee Retention Credit (ERC)
Payroll Tax Deferral (PDT)
This chart will walk you through:
1. Who is eligible for each program?
2. Where can you learn more?
3. How to utilize the program
4. What are the maximum amounts available
5. What are the applicable periods
6. What is the purpose of the program
7. Can you combine programs
We hope this helps you navigate these programs and please remember, we are here to help your business survive COVID-19 so let us know if there is anything we can do.
As a part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, employers are able to apply for a forgivable loan to pay their employees during the COVID-19 crisis.
When can I apply?
Starting April 3, 2020 small businesses and sole proprietorship can apply
Starting April 10, 2020 Independent contractors and self-employed individuals can apply
Where can I apply?
Any SBA Lender or any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating.
We recommend you talk with your current lender/banker to see if they are participating. You can see a list of SBA lenders at http://www.sba.gov
What do I need to apply?
Submit the completed application with required documentation to approved lender
You will need to provide your lender with payroll reports
How to get your reports from Kronos Workforce Ready
How to get your reports from Execupay
What are some of the loan details?
The interest is .5% fixed rate
All payments are deferred for 6 months
The loan is due in 2 years; there is no penalty for pre-payment
Employers have two economic relief options under the Coronavirus Aid, Relief, and Economic Security (CARES) Act:
1. Take advantage of the credits and deferments
2. Participate in the Paycheck Protection Program
Employer Credits and Deferments
- Delay Payment of Employment Taxes
- – Defer 100% of the employer social security taxes through December 31, 2020
- – 50% of deferred amounts due January 1, 2021 and the other 50% due January 1, 2022
- Employee Retention Credit (any credit applied will offset amount of loan forgiven)
- – Credit against wages paid to employees retained during COVID-19 related business closure or reduced gross receipts (compared to prior year)
- – Receive up to $5,000, representing 50% of the first $10,000 of wages this year
- -Limited to the total employee social security liability for the quarter, reduced by FFCRA (Families First Coronavirus Response Act) credit against the same taxes. Note limits also apply for qualified R&D credits and WOTC credit
- – Employers with fewer than 100 employees can take credit for all employees
- -Employers with more than 100 employees can only apply credit to employee furlough whose wages continued for business closure
- – Employers may take credit against current tax liability
- – Operations suspended due to COVID-19 OR
- – Realizing 50% less cash receipts for the same period the prior year; unless prior quarter increased gross receipts of 80% the prior year
Purpose and Period
– Provide short term cash flow assistance fro small businesses
– Loans made by lenders certified by SBA and guaranteed against Federal Government
- – Loans must be made between now and June 30, 2020
- – For profit and non-profit businesses with 500 or fewer employees
- -Sole-proprietors or independent contractors (includes “gig-economy” workers)
- – Payroll costs (excludes salaries over $100,000)
- -Interest on mortgage obligations or rent
- – Interest on other debt incurred prior to obtaining loan
- – Principle amounts from first 8 weeks from when loan was made
- – Business must keep employees and pay them at least 75% of their prior year compensation (plus other retention provisions)
- -Total amount forgiven cannot exceed principle amount of loan
- – Cannot double-dip with Employee Retention Credit
- – Payment for principle not forgiven, as well as interest and fees, can be deferred at least 6 months and no longer than one year
- – Loan can be as large at 250% of average monthly payroll costs over the last 12 months
- -Loans cannot exceed $10 million
- – Salaries over $100,000 not counted as payroll costs
The Small Business Association (SBA) provides low-interest disaster loans to businesses of all sizes, private non-profit organizations, homeowners, and renters. SBA disaster loans can be used to repair or replace the following items damaged or destroyed in a declared disaster: real estate, personal property, machinery and equipment, and inventory and business assets.
Types of Disaster Loans:
- – Home and Personal Property Loans
- – Business Physical Disaster Loans
- – Economic Injury Disaster Loans
- – Military Reservists Economic Injury Loans
House Passes Updated Economic Relief Plan (CARES Act)
Both the Senate and the House of Representatives unanimously passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The bill is expected to be signed into Law by the President. As it stands the Bill is estimated to provide over $2 Trillion ($2,000,000,000,000) dollars in economic aid to employees and employers, as well as expanded benefits for unemployed workers. Read more about the key updates below.
- Refundable tax credit for individuals- up to 1,200 for individual. Eligibility based on 2019(or 2018 if they have not yet filed) Federal Tax Return
- Unemployment insurance provisions include additional $600/week for up to four months; expanded to include self-employed, independent contractors, and individuals with limited work history
- Federal government will fund additional 13 weeks of unemployment benefits through December 31, 2020
- $350 billion allocated to Small Business loans as a part of the Payroll Protection Program. Loans may be forgiven
- Eligible for 50% refundable payroll tax credit on wages paid up to $10,000 during the crisis
- Employer-side social security payroll tax payments may be delayed until January 1, 2021
Families First Coronavirus Response Act
The Families First Coronavirus Response Act has now passed both the House and the Senate and has been enacted into law by the President.
The Families First Coronavirus Response Act (FFCRA) requires certain employers to provide employees with expanded family and medical leave for specific reasons related to COVID-19. These provisions will apply from the effective date, April 2, 2020 (15 days after law was enacted on March 18) through December 31, 2020.
The Department of Labor’s (DOL) Wage and Hour Division administers and enforces the new law’s paid leave requirements. Click below to learn more about the definitions provided by the DOL outlining covered employers, eligible employees and what employees can receive.