Rob, Scott, and Jason discuss predictions for what’s next in stimulus, including: what’s worked in the past for small and medium sized businesses, the previous five rounds of legislation, federal unemployment benefits, what businesses need for round six, and more.
Contact us with any questions you may have, we’re here to help: hr@employco.com
Employment expert discusses what small businesses can do when the funds run out
Congress resumed yesterday and later this week it is expected that Mitch McConnell will begin negotiations of a new stimulus package of $1.3 trillion under the Heroes Act.
“McConnell says the stimulus needs to be approved by Congress by August. If it is not approved by the time the Senate returns in August, businesses may not get any relief next month, which could be the final straw for many struggling businesses,” says Rob Wilson, employment expert and President of Employco USA, an employment solutions firm with locations across the country.
A recent Goldman Sachs survey showed that most small businesses who received funds via the Paycheck Protection Program will run out of money by August.
“Eighty-four percent of small businesses are going to be out of PPP funds by the first week of next month,” says Wilson. “And only 16 percent of those businesses believe that they will be able to make payroll with their existing funds unless another round of loans is provided.”
Wilson says that the Goldman Sachs survey further reveals that most small businesses say that they have not been able to regain their customer base.
Employment expert shares what employers need to know
With the new measures that Gov. J.B. Pritzker just released for Illinois’s reopening, many employers are scratching their heads as they consider the complicated, multi-tiered plan which dictates their economic future.
“The governor’s plan is structured across 11 different regions with three industry-specific tiers,” says Rob Wilson, President of Employco USA and employment trends expert. “These tiers detail numerous criteria that need to be met in order for the reopening to continue. If mitigations occur, such as sustained hospital admissions, sustained positive cases, or decreased capacity of hospital beds, we will see regions and industries shut down once again.”
Wilson says that while this plan was built to make reopening as safe as possible, it is causing confusion for employers who don’t have a clear idea of how they can move forward and whether they can require employees to return to work.
“Right now, we are in a ‘watch and wait’ phase, with many people still afraid to return to work,” says Wilson. “We are encouraging our clients to send out comprehensive surveys to their staff to help them identify people who do want to return to work and under what circumstances. Some employees may be high-risk or live with someone who is high-risk, such as their spouse or child or elderly family member. In these cases, returning to work may not be advisable.”
Employment expert Rob Wilson shares top tips for leveraging Paycheck Protection Program
As the coronavirus pandemic continues to wreak havoc on the national economy, the Paycheck Protection Program Flexibility Act (PPPFA) provides employers with updated options for managing their loans. However, it’s important to know the best way to leverage these options and protect your company during this time of upheaval.
“Under changes to the PPPFA signed on June 5, employers will now be eligible for loan forgiveness equal to the amount the borrower spent on rent, utilities, and mortgages during the 8-week or 24-week covered period or alternative covered period,” says Rob Wilson, President of Employco USA and human resources expert. “Up to 40% of payroll costs can also be covered under these loan terms.”
What is considered a covered payroll cost under the guidelines of the PPPFA?
“Payroll costs can include salary, wages, commissions, or similar compensation, sick leave or medical leave, group insurance, retirement benefits, and cash tips among other possibilities,” says Wilson. “But there are a few exceptions like compensation of an employee whose residence is out the United States.”
Join Employco USA to learn about the LATEST UPDATES to the Paycheck Protection Program (PPP) following the enactment of the Flexibility Act and revised forgiveness applications.
During this FREE webinar, we’ll:
You’ll also be able to get some clarity on human resource issues including unemployment and payroll. Employco provides HR and payroll solutions to businesses across the country.
There will be a brief presentation to begin the session, but most of the time will be dedicated to answering your specific questions!
FREE REGISTRATION
You’ll be able to join us at 11:00am CT on Friday, June 26th from your computer, tablet, or smartphone (you can also dial-in):
You can also use our registration form to submit questions you’d like to see answered/covered during the webinar.
Rob, Scott, and Jason discuss reopening the workplace; from performing a building walkthrough to identifying hazards and how to address them, optimizing your HVAC filtration system, following CDC recommendations, conducting an employee survey, limiting staff back at one time, having a plan in place if someone shows symptoms, and more.
Contact us with any questions you may have, we’re here to help: hr@employco.com
BULLETIN
June 18, 2020 (UPDATE)
On June 16th, the U.S. Small Business Administration (SBA) and the Treasury Department released a new set of forgiveness application forms and instructions to help borrowers navigate the Paycheck Protection Program (PPP) loan program. The documents incorporate the changes made through the PPP Flexibility Act passed on June 5th.
Revised PPP Loan Forgiveness Application and Instructions:
EZ PPP Loan Forgiveness Application and Instructions:
The EZ form can be used if the borrower:
Employment expert shares crucial advice on reopening and what employers must do to protect themselves, their staff, and their clients
If your reopening is consistent with applicable state and local orders, you might assume that you can flip your ‘closed’ sign around and start embracing our new normal.
However, employment expert Rob Wilson says that employers need to consider more than just state/local guidelines before reopening.
“From putting recommended health and safety actions in place to implementing ongoing monitoring, getting back to work is going to look very different than before, and it’s going to require many workplace modifications,” says Wilson, who has helped guide numerous clients in their reopening procedures.
BULLETIN
June 05, 2020 (UPDATE)
Earlier today, President Donald Trump signed into law the Paycheck Protection Program (PPP) Flexibility Act of 2020, which provides borrowers with greater flexibility in spending PPP funds without compromising forgiveness eligibility.
The act, which passed with a bipartisan vote, makes the following amendments to the PPP to provide relief to borrowers:
Employment trends expert Rob Wilson shares exclusive advice on PPP and what employers must know
Last week the House passed the Paycheck Protection Program Flexibility Act by 417-1, with the aim of easing strain on small business owners who are being crushed by the coronavirus pandemic and work stoppage.
“The House made important modifications to PPP which really lightened the burden on small businesses,” says Rob Wilson, President of Employco USA and employment trends expert. “They reduced the percentage of the loan which must be spent on payroll down to 60%, which ensures that employers can spend the funds on other necessary business expenses.”
Still, Wilson knows that this won’t be enough for many businesses.