Employers and COVID-19
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.
We have explored the provisions of this bill here.
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.
Many employers whose businesses have been significantly affected by the coronavirus have asked whether they should furlough their employees?
The answer to this question is complicated and depends on so many specific factors including the size of your workforce, the skill level of your employees, how quickly you expect your business to rebound and your relationship to your work family.
The government has provided credits in the Family First Coronavirus Response Act and the CARES Act as well as an attractive loan program. Some of these programs work together, and some preclude others.
Do not make this decision without talking with your attorney and your advisor at GranthamPoole. We are staying informed and available to help you navigate these difficult decisions. Understanding the available government programs will help you choose the best path for the months ahead.
Please call on us.