COVID-19 Planning for Business Owners
Since March 18th when President Trump signed the Families First Coronavirus Response Act, employers have scrambled to understand their rights and responsibilities to their employees. The Department of Labor continues to issue guidance on Emergency Paid Sick Leave and Public Health Emergency Leave.
On March 27th, the President signed into law the $2 trillion-dollar CARES Act which further provides relief for employers including:
- Tax credits for employee retention of up to $5,000 per employee
- More time to pay the employer portion of payroll taxes (as late as December 2022)
- The SBA Paycheck Protection Loan Program with a forgiveness component for employee retention
- The SBA Economic Injury Disaster Loan Program with a forgiveness component if spent on paid leave
In addition, the CARES Act expanded unemployment benefits by supplementing state-paid unemployment and extending benefits an additional 13 weeks.
Employers whose businesses have been significantly affected during this time are working through a myriad of issues regarding furloughed employees, rehiring and moving toward normal operations, applying for and/or making use of government assistance, and estimating potential loan forgiveness under the PPP.by the coronavirus have asked whether they should furlough their employees?
The business and personal considerations involved in these decisions defy encapsulation in a paragraph, and the environment affecting them is continually changing. Federal, state, and local guidance and restrictions on returning to work and social interaction are among the most important factors. Also at play are the markets in which particular businesses operate, the extent to which staffing has changed during the pandemic, the availability of former and/or new employees, their willingness of the former to return in light of enhanced unemployment benefits, and the disposition of PPP funds are just some of the items to be considered.
Such an unprecedented set of challenges demands careful analysis and planning at both the strategic and tactical levels. GranthamPoole is helping our clients chart a course to maintain and enhance stability and achieve success through this time, considering all these factors and more. Let us help you as well. Contact us or fill out a consultation card below for assistance.
SBA Paycheck Protection Loan Program
CARES Act Tax Provisions
Family First Coronavirus Response Act
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