Can Businesses Get More PPP? Congress to Negotiate ‘Heroes Act’ This Week

Employco USA

Employment expert discusses what small businesses can do when the funds run out 

COVID-19Congress 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.

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Breaking: Illinois Gov. Pritzker Releases New Reopening Criteria

Employco USA

Employment expert shares what employers need to know

Illinois ReopeningWith 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.”

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Don’t Celebrate Yet: Here is Why the Latest Jobs Report is Misleading

Employco USA

Employment expert says latest numbers are a false positive

Jobs ReportLast Thursday the Labor of Department released new figures showing that the United States gained 4.8 million new jobs in June. In addition, the unemployment rate hovered at 11.1%, lower than the predicted 12.4% rate. President Trump heralded the numbers as proof that the economy is “roaring back” after months of economic destruction caused by the COVID-19 pandemic.

“The latest job report seems like a major cause for celebration,” says Rob Wilson, President of Employco USA, a national employment solutions firm with locations across the county. “However, those of us within the employment industry are not celebrating just yet.”

Wilson, an employment expert who has helped hundreds of clients navigate the impact of coronavirus on the workplace, says “These new hire numbers are a false positive. At Employco, over 200 of our clients received PPP. Many then slowly rehired formerly laid-off employees in May and June.”

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COVID-19 in the Workplace: What Employers Need to Know about PPPFA

Employco USA

Employment expert Rob Wilson shares top tips for leveraging Paycheck Protection Program

COVID-19As 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.”

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WEBINAR: PPP Update Following the Flexibility Act and Revised Forgiveness Applications

Employco USA

Webinar 06/26/2020

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:

  • Summarize the updated regulations and instructions released on June 5th and June 17th
  • Learn the differences available between the 8-week and 24-week forgiveness periods
  • Discuss the new options to setup your measurement period for payroll and non-payroll costs
  • Review the new EZ Forgiveness application
  • Examine the new wage limits if the 24-week option is selected
  • Provide details on how to calculate a FT vs FTE employee
  • Discuss tips to maximize the forgiveness, and talk about the rules for the portion of the loan that is not forgiven
  • Review how the forgiveness evaluation limits owners’ compensation

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):

REGISTER HERE

You can also use our registration form to submit questions you’d like to see answered/covered during the webinar.

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Podcast: Reopening the Workplace

Employco USA

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.

Podcast: Reopening the Workplace

Contact us with any questions you may have, we’re here to help: hr@employco.com

SBA and Treasury Release New PPP Documents

Employco USA

Employco USA, Inc.

BULLETIN
June 18, 2020 (UPDATE)

COVID-19

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:

  • Is self-employed with no employees; or
  • Did not reduce employee pay by more than 25%; and did not reduce the number or hours of employees; or
  • Did not reduce employee pay by more than 25%; and experienced reductions in business activity as a result of health directives related to COVID-19

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BREAKING: Supreme Court Paves Way for LGBT+ Rights in the Workplace

Employco USA

Employment trends expert discusses crucial ruling & what employers need to know

PrideJust in time for Pride Month, the Supreme Court has made the landmark decision to extend new protections to LGBTQIA workers. Today, the Supreme Court made changes to federal civil rights law to include additional protections to gay, lesbian and transgender workers, providing pushback to previous attempts that sought to limit the scope of Title VII of the Civil Rights Act.

“The Supreme Court ruling is being celebrated as an important step in creating a more supportive and safer workplace for millions of LGBT Americans,” says Rob Wilson, employment expert and President of Employco USA, an employment solutions firm with locations across the country.

Wilson says the new ruling is important as previous research has shown many employers have both implicit and explicit bias against transgender workers.

“A recent survey led by the DC Office of Human Rights found that 48 percent of employers showed bias against hiring a transgender individual, even if the applicant was more highly qualified than others. And, nearly 90% of transgender individuals report workplace harassment, says Wilson. “And other research has shown that employers and coworkers can be hostile towards gay or lesbian workers.”

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Don’t Reopen Until You Read This! Guidelines for Getting Back to Work

Employco USA

Employment expert shares crucial advice on reopening and what employers must do to protect themselves, their staff, and their clients

ReopeningIf 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.

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