COVID-19 Resources
and Information

Partners HR is committed to making sure you are well aware of how we are operating during this time. We also want to make sure that you have access to resources that are critical to keeping your business running.

COVID-19 Resources and Information

We have created a new page on our site dedicated to providing news and business resources related to COVID-19.

We wanted to let you know what we are up to:
As of today, we are providing our services as usual. We will keep you informed of changes.

Please note:
It is of extra importance than you get your payroll hours to us in a timely manner. It doesn’t hurt to be early. We are seeing 3rd-party delivery delays that are out of our control.

What You Should Be Doing:
We encourage you to follow the guidelines of the CDC and local officials.

Plan for the Future:
You and your team should have a plan in place if you need to alter your current work arrangements. We also encourage you all to keep detailed notes of your day to day operations during this time; in the event of possible future relief.

No relief has been officially announced. For more information visit: IRS or DOL

Partners HR
405-917-1020

See our latest best practices & ways to be prepared HERE

Do you still have employees receiving paper paychecks? During the crisis, postal delivery could delay the receipt of paychecks. Have your employees sign up for direct deposit or a paycard today.

 
manatcomputer

PPP Round 2 Information for Small Business Owners

The PPP is a loan program managed by the Small Business Administration (SBA) and enables certain lenders (including banks, FinTech companies, and community lenders like CDFIs and MDIs) to distribute PPP loans on behalf of the SBA to small businesses.

Here is PPP under the Consolidated Appropriations Act, 2021 at-a-glance:

  • $284 billion has been allocated to PPP (including $138 billion of unspent loans from the first round that were reinvested) and the program has been extended to March 31, 2021
  • Second-draw loans are available for businesses with under 300 employees
  • Businesses eligible for PPP loans has been expanded
  • Loan limitations have been expanded for certain businesses
  • Forgiveness for loans under $150K have a new, simplified one-page application
  • Eligible expenses for forgiveness have been expanded (for first-draw loans that have not yet been forgiven and for second-draw loans)
  • While expenses eligible for forgiveness still require a 60/40 split of payroll costs/other eligible expenses, group health insurance benefits are now included in payroll costs (and these entail life insurance, disability benefits, vision, and dental insurance)
  • Borrowers are allowed to choose a covered period that is any period of time between eight and 24 weeks
  • PPP funding includes dedicated set-asides for community lenders (CDFIs and MDIs) and business that operate in low-income areas
  • A clarification has been made indicating that interest rates on PPP loans are non-compounding and non-adjustable
  • A clarification has been made indicating that forgiven PPP loans are not taxable and forgiven expenses are tax-deductible

PPP Round 2 loan eligibility

Only certain businesses are eligible to receive a PPP loan, and these specifications are different for first-time loan recipients and second-draw recipients.

To be eligible for a first-draw PPP loan:

  • Your business has less than 500 full-time, part-time, or seasonal employees.
  • Your business was operational before February 15, 2020 and remains operational.

To be eligible for a second-draw PPP loan:

  • Your business has less than 300 full-time, part-time, or seasonal employees; if you have multiple locations, you may not have more than 300 employees per location.
  • You are able to demonstrate a revenue reduction of at least 25% in the first, second, or third quarter of 2020 (when compared with the same quarter in 2019).
  • You have used or will use the full amount of the first-draw PPP.
  • Your business was operational before February 15, 2020 and remains operational.
  • Businesses eligible for first- and second-draw PPP loans include:
    • Sole proprietors
    • Independent contractors
    • Self-employed individuals
    • Certain non-profits (the new bill has expanded eligible businesses to include certain 501(c)(6) non-profit organizations)
    • Seasonal employers; the new bill has clarified the definition of these to be businesses that operate no more than seven months within a year or earn no more than a third of gross receipts within a six-month period
    • Faith-based organizations that have less than 150 employees
    • Housing cooperatives that employ less than 300 people

The following businesses remain ineligible for PPP loans:

  • Lobbying organizations
  • Organizations involved in political activities or public policy
  • Lenders or financial services businesses
  • Cannabis businesses (or any other businesses that deal with products that are illegal at the federal level)
  • Household employers (such as those who employ housekeepers or nannies)
  • Businesses that have defaulted on SBA or federal loans
  • Any business that is at least 20% owned by someone who is currently incarcerated, on probation, on parole, or subject to an indictment
  • Any business that is at least 20% owned by someone who has been convicted of a felony within the last five years
  • Entities affiliated with the People’s Republic of China or Hong Kong or that have a member on their board of directors that is a resident of the People’s Republic of China
  • Registrants under the Foreign Agents Registration Act
  • Entities that have received or will receive a grant under the Shuttered Venue Operator Grant program

PPP Round 2 loan allocations - To ensure PPP loans are distributed to the businesses that really need capital, amounts of PPP funding has been set aside for specific institutions (these may be adjusted in the future):

  • $15 billion has been set aside for both first- and second-draw PPP loans to be issued by community financial institutions, including CDFIs and MDIs
  • $15 billion has been set aside for both first- and second-draw PPP loans to be issued by certain small depository institutions
  • $25 million has been set aside for both first- and second-draw PPP loans to be issued by the Minority Business Development Centers program under the Minority Business Development Agency (MBDA)
  • $57 million has been set aside for a micro-loan program
  • $15 billion in grants has been set aside for live venues
  • $20 billion is allocated to the Targeted EIDL Advance program
  • $15 billion is allocated to smaller, first-time borrowers with ten or fewer employees or those who are in low-income areas and borrowing less than $250,000
  • $25 billion is allocated to second-draw borrowers with ten or fewer employees or those who are in low-income areas and are borrowing less than $250,000
  • PPP loan terms
  • All PPP loans have a fixed interest rate of 1%. The new bill has clarified that the interest rate is non-compounding and non-adjustable for first- and second-draw loans.

Under PPP, lenders may not:

  • Charge a yearly fee
  • Charge a guaranteed fee
  • Charge a prepayment penalty
  • Request collateral or a personal guarantee
  • Businesses that receive PPP loans may also receive loans from other lenders or programs and may be able to obtain credit from other institutions.

PPP loan maturity and deferral period

The maturity of a PPP loan is five years. -- The deferral period lasts until the loan forgiveness amount is determined. This means that until you know how much of your loan will be forgiven, you don’t need to start making payments. Borrowers who fail to apply for loan forgiveness must start making loan payments within ten months of the last day of the covered period.

PPP Round 2 loan maximums and limitations

There are limits to what borrowers can receive; these vary depending on the specifics of the business and whether a borrower has already received a PPP loan.

First-draw PPP loan limitations

The maximum amount a business that has not yet received a PPP loan can borrow is the lesser of:

  • 2.5 times the average monthly payroll costs and healthcare costs
  • $10 million - There may be exceptions to these limits for restaurants and other hospitality businesses.

Second-draw PPP loan limitations

Any business that is applying for a second draw will be subject to more stringent limitations. The maximum second PPP loan amount is the lesser of:

  • 2.5 times the average monthly payroll costs and healthcare costs in the year prior to when the loan was received or within the calendar year
  • 3.5 times the average monthly payroll costs and healthcare costs in the year prior to when the loan was received or within the calendar year for any business that is classified under Code 72 by the North American Industry Classification System (NAICS). (This is a list of hospitality and entertainment businesses like restaurants, hotels, and casinos; click the link to get the full list.)
  • $2 million

Common questions about PPP

What does a PPP Round 2 loan application look like? How do I fill it out?

This depends on where you apply; different lenders have different application requirements, but eligibility, loan terms, and forgiveness won’t change from lender to lender.

Where can I find a list of PPP Round 2 lenders?

Contact banks and lenders in your area to find out if they are supporting the PPP program. Keep in mind that lenders who are offering first-draw loans may be ready to distribute loans before lenders offering second-draw loans (because wading through second-draw legislation and shifting internal practices may take some time for these institutions).

I wasn’t able to get a first-round PPP loan; should I try for one in the second round?

Yes, as long as you are eligible and can adhere to the terms of the loan. With the creation of the new bill, Congress has set aside allocations for community lenders and institutions that can help smaller businesses, businesses owned by POC, and those who operate in lower-income areas access capital.

A portion of funding is being directed to Community Development Financial Institutions (CDFIs) and Minority Depository Institution (MDIs). These are community lenders who have committed to expanding economic opportunity for underserved people. Not only are portions of the PPP allocated for these lenders, but also outside of PPP funds; $12 billion is being routed to CDFIs and MDIs. This means that even if the community lenders in your area aren’t supporting PPP, they may be offering other loans with federal funds under the Consolidated Appropriations Act, 2021.

I returned part or all of my PPP loan; can I apply for another PPP loan?

Yes. Within 17 days of the enactment of this bill, the SBA is required to release guidance to lenders on allowing borrowers who have returned loans to access PPP capital.

Payroll Tax Delay Details - 8/11/20

On Saturday, the President issued an executive memorandum regarding a payroll tax delay. The memorandum directs the Secretary of the Treasury to implement a delay of certain employees’ obligations to pay Social Security taxes. The payroll tax provision requires guidance to be issued by the Department of Treasury. Until that guidance is issued, many of the details are unknown.

Below is a summary of the key provisions of the memorandum:

  • The memorandum applies to the period September 1, 2020, through December 31, 2020.
  • It is unclear whether employers are required to take advantage of the delay.
  • The memorandum does not address what an employer should do if he decides to continue withholding payroll taxes.
  • The memorandum only applies to the 6.2 percent Social Security tax on employees.
  • The memorandum only applies to employees generally earning less than $104,000
    annually.
  • The memorandum only provides a delay of the tax obligation, not forgiveness.
  • No penalties or interest shall apply to those who use the delay.
  • There is no relief with respect to employers’ withholding obligation.


It is important to keep in mind that Congress and the Trump Administration are still negotiating on a potential COVID-19 relief measure, and that a compromise bill could supersede the President’s actions. As this situation becomes clearer, we will update you on what to expect and what actions to take.

Payroll Tax Delay Details - 8/11/20

On Saturday, the President issued an executive memorandum regarding a payroll tax delay. The memorandum directs the Secretary of the Treasury to implement a delay of certain employees’ obligations to pay Social Security taxes. The payroll tax provision requires guidance to be issued by the Department of Treasury. Until that guidance is issued, many of the details are unknown.

Below is a summary of the key provisions of the memorandum:

  • The memorandum applies to the period September 1, 2020, through December 31, 2020.
  • It is unclear whether employers are required to take advantage of the delay.
  • The memorandum does not address what an employer should do if he decides to continue
    withholding payroll taxes.
  • The memorandum only applies to the 6.2 percent Social Security tax on employees.
  • The memorandum only applies to employees generally earning less than $104,000
    annually.
  • The memorandum only provides a delay of the tax obligation, not forgiveness.
  • No penalties or interest shall apply to those who use the delay.

There is no relief with respect to employers’ withholding obligation.

It is important to keep in mind that Congress and the Trump Administration are still negotiating on a potential COVID-19 relief measure, and that a compromise bill could supersede the President’s actions. As this situation becomes clearer, we will update you on what to expect and what actions to take.

Paycheck Protection Program Details - 6/4/20 (revised)

Congress passed the Paycheck Protection Program Flexibility Act. This bill will provide increased flexibility for borrowers who have received or will receive Paycheck Protection Program (PPP) loans. Here are some of the key highlights.

  • Increasing the PPP loan forgiveness coverage period from 8 weeks to 24 weeks. This means dental practices can make better decisions on when to spend the money based on what is best for their businesses.
  • Deferring payroll tax for PPP loan borrowers through Dec. 31, 2020. 50% of the deferred amount will be due Dec. 31, 2021, and the other 50% of the deferred amount will be due Dec. 31, 2022.
  • Deferring PPP loan repayment for 10 months instead of 6 months.
  • Allowing borrowers to use 40% of PPP funds to pay for non-payroll expenses as opposed to only 25% and still be eligible for full forgiveness.
  • Extending the rehiring deadline to offset the effect of enhanced Unemployment Insurance beyond June 30, 2020. This accounts for those businesses who have employees making more on unemployment and are facing a harder time rehiring staff as a result.

Loan Forgiveness Application

Returning to Work FAQ's - 5/1/20

I will likely bring back some, but not all, of my workforce. What should I consider?

Establishing and applying fact-based criteria that are consistent with your legitimate business needs and documenting the reasons for your decisions are important considerations when returning employees to work. Remember to also review the requirements in any written employment agreements, or collective bargaining agreement if you have unionized employees, to make sure that you’re remaining in compliance.

Employer decisions cannot be based on reasons that violate federal, state, or local anti discrimination laws. For example, because an employee is a member of a group protected by these laws, has made complaints that are legally protected (i.e. complaints about discrimination or harassment), has taken leave that is protected under federal, state or local law, or because the employer believes that an employee will request leave when called back to work, including EPSL or EFMLA. If you have questions about these laws, or your selection process appears to violate them, consult with your legal counsel.

What date should employees be recalled or rehired?

Employers receiving loans available under the CARES Act and seeking loan forgiveness for payroll costs should consider the following:

Loan forgiveness will be reduced for any reductions in FTEs. Employers should recall or rehire employees no later than June 30, 2020 to receive unreduced loan forgiveness for layoffs occurring prior to April 26. We are still waiting on official guidance, however, it appears rehires should occur more quickly for unreduced loan forgiveness for May and June, since loan forgiveness is reduced proportionately for reductions in Full Time Equivalent (FTEs). Loan forgiveness will be reduced by the amount of any wages or salary in excess of 25%.

What do I have to communicate to returning employees?

Employers should consider issuing return to work letters that:

  • Address if employees will be recalled/rehired into the same position.
  • Confirms pay rates for returning employees. Note: Employers receiving loans under the CARES Act and seeking loan forgiveness for payroll costs have certain obligations to restore and maintain compensation and benefits levels.
  • Additionally, if organizational structure has changed, employers may also consider determining the skills of individuals and appropriate positions to offer when returning their employees to work.

I am ready to bring employees back, but our workload and workflow will likely change. What should I consider if I change my employees’ duties to fit our new needs?

Employment contracts and/or collective bargaining agreements may affect how duties can be altered for certain employees. For example, different duties may mean that an employee who was exempt from receiving overtime pay is now entitled to receive it. Remember to factor in compliance with federal, state and local wage and hour laws and consider consulting with your legal counsel if you have any questions. All business decisions should be made on fact-based criteria, should remain consistent with your legitimate business needs, and cannot be based on reasons that violate federal, state, or local law.

How far apart should employees be from each other at work?

Employers should consider implementing policies and practices for social distancing, which encourages employees to stay six feet away from each other whenever possible. This could include staggering employees’ on-site hours or attendance, allowing employees to work remotely if possible, and reconfiguring work sites and spaces to allow employees to be further apart. Please review your state and local health department resources and federal OSHA guidelines for any additional requirements or guidance.

What specific COVID-19 protective equipment should I provide for my employees?

Employers can require employees to wear safety equipment like face/eye protection, gowns, gloves, or other equipment suggested by OSHA, and should review the guidance published on OSHA’s website for recommended practices.

If either state law or the employer requires employees to wear protective equipment in the workplace, the employer must pay for it. Additional requirements may also apply if your business is already subject to OSHA’s Bloodborne Pathogens standard or other state or federal industry-specific requirements.

Some states now require certain employers to provide masks, other face coverings, or gloves for employees. For more information, please review your applicable state’s COVID-19 resources.

What are some other appropriate actions related to the COVID-19 health pandemic I should consider? Employers should consider:

  • Sending employees home immediately if they show symptoms of COVID-19. Consult with your Paychex HR professional on recommended next steps.
  • Exploring if, and under what circumstances, employees may work from home.
  • Consulting their Paychex HR professional prior to asking employees any medical-related questions, including possible temperature screening.
  • Reviewing and/or determining employee eligibility for leaves of absence (paid or unpaid) under the Families First Coronavirus Response Act (FFCRA), state or local law, or company policies.
  • Exploring whether to provide employees with personal protective equipment, such as masks and gloves.

When my employees return, I want to offer additional pay to recognize their hard work during this pandemic. How should I do this?

If an employer chooses to offer additional pay, it must be included in the calculation of the employee’s “regular rate of pay,” which is used to determine the overtime rate for individuals who are not exempt from overtime requirements. Establish criteria for awarding this extra pay and take care to avoid the appearance of discrimination, as employment decisions, including pay changes, cannot be based on reasons that violate federal or local law. Currently, state laws and the Fair Labor Standard Act (FLSA) do not require “hazard pay”, however, there may be requirements for some government employees.

Do employees need to complete a new Form I-9?

If employees were furloughed, updating their Form I-9 is generally not required. If employees were terminated, and then rehired within three years of the date their previous Form I-9 was completed, you may either complete a new Form I-9 or complete Section 3 of their original Form I-9 to indicate the rehire. When completing Section 3 for a rehire, review the original Form I-9 to determine if your employee is still authorized to work, including whether employment authorization documentation presented in Section 2 (List A or List C) has since expired (or have been auto-extended). If your employee is still authorized to work and his or her employment authorization documentation is still valid, enter the date of the rehire in the space provided in Section 3. If your employee is no longer authorized to work or the employment authorization documentation has since expired and requires reverification, request that the employee present an unexpired List A or List C document. Do not reverify an employee’s List B (identity) document. Enter the document information and the date of rehire in the spaces provided in Section 3. If the current version of Form I-9 is different from the previously completed Form I-9, you must complete Section 3 on the current version. If employees are being rehired more than three years after the previous Form I-9 was completed, a new Form I-9 must be completed.

Can I change my current bonus plan in light of the COVID-19 pandemic?

This would depend on the terms of your bonus plan. Before making any changes or withholding payments to employees, review the terms of your plan with your legal counsel.

What should I consider when reviewing the status of health plans, cafeteria plans, and other fringe benefit plans, such as vision and dental?

Employers should consider reviewing all agreements, plans, and policies to determine if any modifications are warranted regarding eligibility and employee cost-sharing. A break in service of 30 days or less within the same calendar year may result in the reinstatement of the employee’s FSA. Contributions will be recalculated to deduct the full amount by the year’s end. If there is a break in service of more than 30 days, or if the employee is rehired in a new calendar year, new FSA elections may be required. Note: Remember to also check the terms of cafeteria plans, if applicable, and consider potential special enrollment rights and qualified life event election changes (typically 30-day periods). To evaluate plan eligibility changes, consult the Benefits Department.

What are some additional items to consider when rehiring employees?

Employers should consider:

  • Providing a new Form W-4 in case employees want to make changes upon returning to work.
  • Ensuring “new hire” employee documents (i.e., current employee handbook, emergency contact information, etc.) are properly updated and executed.
  • Determining implications for 401(k), 403(b), and pension plans.
  • Evaluating executive compensation and severance arrangements.

I have a PEO agreement with Partners what can HR help with?

Our HR Manager can assist with:

  • Determining if drug tests may need to be conducted;
  • Explaining if state or local paid sick leave laws require prior accruals to be reinstated;
  • Reviewing internal policies on rehiring to determine any reinstatement of accrued PTO or vacation time;
  • Addressing state or local paid family leave laws under which contributions must be resumed, and if new direct deposit authorization forms need to be completed.

I’m reopening my workplace, but some of my employees are refusing to return. Can I discipline or even terminate employees who won’t come back?

An employee’s reason(s) for not returning may make them eligible for some type of leave required by federal or state law, so it is important to engage with your employees to understand why they are refusing to return before taking any action. For example, an employee concerned about their own health condition may be entitled to a reasonable accommodation under the ADA or state law, or an employee caring for a child because their child’s school or daycare is still closed may be entitled to EPSL or EFMLA.

If your employees are raising reasonable COVID-19 safety concerns, their complaints or even their refusal to work may be protected under OSHA or the National Labor Relations Act, even if your workplace is not unionized. Discuss these issues with your legal counsel before terminating your employees or imposing any other discipline.

We’ve resumed operations, but schools and daycares centers are closed, and my employee’s young children are home. Can I allow them to telework?

If you employ less than 500 employees, your employees who cannot work due to COVID-19 related reasons may be eligible for two weeks of Emergency Paid Sick Leave (EPSL). If your employees are unable to work because their child’s school or daycare provider is closed, they may be eligible for two weeks of EPSL and an additional 10 weeks of EFMLA. If you allow your employees to telework, they may be able to telework rather than take this leave. But if they cannot take advantage of a teleworking option due to their childcare obligations, they may still be eligible for EPSL or EFMLA leave.

My employees accrue paid time off. Should this leave continue to accrue, even when employees are on temporary layoff or furloughed?

This would depend on your state’s wage and hour laws and your own policies. Important considerations include whether your employees remained on your payroll during the temporary layoff or furlough, and whether your state has extended its rules relating to leave in response to the COVID-19 pandemic.

Consider reviewing your existing written leave and leave accrual policies and your obligations under any written employment agreements and/or collective bargaining agreement, if your employees are unionized. Even if employees have no accrued leave left, they still may be eligible for mandated paid leave under the EPSL, EFMLA, state law, or to unpaid leave as a reasonable accommodation for a disability.

What do I do if an employee elects COBRA, State Continuation, or other conversion rights?

Consult with the benefits department and review your benefit plans to determine any waiting period requirement for health and other benefits to determine when the employee can re-enroll in active coverage, and to identify any other issues resulting from a break in service.

Does the salary/rate I pay my employees during the 8-week covered period impact my loan forgiveness?

Loan forgiveness amounts will be reduced if wages paid to employees earning less than $100,000 annualized during the covered period are reduced by more than 25% when compared to wages paid during the most recent full quarter during which the employee was employed before the covered period. For example, if an individual making $75,000 annualized was employed during the first quarter of 2020, and you received the loan in April and reduced the employee’s wages to $70,000, there would be no reduction. However, if you reduced the employee’s wages by 30% during the covered period (an annualized rate of $52,500) then the amount eligible for loan forgiveness would be reduced by $3,743 (which represents the excess over 25% (4.9%) that the employee’s wages were reduced. Our Loan Forgiveness Estimator can calculate how any decrease in wages during the covered period will affect the eligible forgiveness amount.

Will my loan forgiveness be lowered if I reduced the number of employees I retain or rehire?

The amount of your loan forgiveness will be lowered proportionally if you reduce your full-time equivalents (FTEs). We are awaiting guidance from the SBA defining FTEs and how to count them. In general, FTEs include Full Time and Part Time Employees. Employees are generally counted as one FTE if they work hours established as the standard workweek, while employees who work less than the standard hours are listed as a partial FTE.

Paycheck Protection Program Details - 4/27/20

On Friday, March 27, 2020, the president signed the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act into law.This bill includes financial assistance opportunities to those struggling due to COVID-19.

Paycheck Protection Program Details - 4/23/20

Congress has just passed legislation to add additional funding the Paycheck Protection Program (PPP). The President is expected to sign the bill later today.

Here’s a breakdown of what’s in the law:

  1. $310 billion increase for PPP
    Sets aside the following amounts:
    1. $30 billion for loans made by Insured Depository Institutions and Credit Unions that have assets between $10 billion and $50 billion
    2. $30 billion for loans made by Community Financial Institutions, Small Insured Depository Institutions, and Credit Unions with assets less than $10 billion
  2. No changes to eligibility for the PPP
  3. $10 billion increase for EIDL Grants and an additional $50 billion to support EIDL Loans
  4. $75 billion increase for reimbursement to hospitals and healthcare Providers
  5. $25 billion for COVID-19 tests

Contact your financial institution now to apply for the PPP. Contact Partners HR with any questions.

Paycheck Protection Program Details - 4/17/20

The Paycheck Protection Program has been completely depleted of funds. Legislations is working diligently to approve more funds. In the interim here are some options:

The Small Business Association (SBA) also announced that it would implement new COVID-19 disaster relief lending.

  • SBA's Economic Injury Disaster Loans offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
    • These loans may be more flexible than those issued under CARES Act and can used to pay fixed debts, payroll, accounts payable and other bills that can't be paid because of the disaster's impact. The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%.
    • SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower's ability to repay.
    • To access these emergency loans, you should contact the SBA disaster assistance customer service center directly. Call 1-800-659-2955 (TTY: 1-800-877-8339) or email disastercustomerservice@sba.gov.
    • There is an online application portal for EDIL loans here. These are NOT PPP loans.

Paycheck Protection Program Details - 4/8/20

Here is what information we have obtained about the Paycheck Protection Program Loan.

What is available: Under the CARES Act, the maximum amount you can borrow is 250% of your average monthly “payroll costs” (based on a 12-month look back), not to exceed $10 million.

“Payroll costs” include compensation paid to employees capped at $100,000 per year per individual (prorated over the “covered” period). Compensation above $100,000 per year (prorated over this same period) is excluded for the purposes of making this calculation.

In addition to compensation, “payroll costs” can be interpreted according to the existing SBA definition. This means that your calculation in applying for a loan amount can also include cash tip equivalents, the cost of health benefits (including premiums), the cost of retirement benefits, the cost of leave (e.g., vacation, family, and sick leave), and the payment of state or local taxes assessed on employee compensation.

 

Fees: The loans will be issued via the SBA’s network of 7(a) program lenders and will be 100% guaranteed by the SBA. If you have available credit from other sources that does not disqualify you. There are no application fees or closing costs allowed and there is no collateral or personal guarantee required.

Loan terms: The maximum interest rate lenders can charge is 4% and the maximum loan term is 10 years. The first 6 months of payments (principal and interest) are automatically deferred. This deferral period can be extended up to a year.

Partners HR is continuing to monitor the COVID-19 Crisis and guide our community through this time. Clients who have questions are encouraged to contact our HR specialist. Please don't hesitate to reach out to us at 405-917-1020 or info@partners-hr.com.

Paycheck Protection Program
Loan Application (update) - 4/6/20

Under the CARES Act, a new business “Paycheck Protection Program” was created via a $349 billion lending facility modeled on the Small Business Administration’s (SBA) existing 7(a) program.

Under this new program, eligible small businesses can get a loan to cover costs incurred between February 15, 2020, and June 30, 2020. This window of time is referred to in other areas of the law, and below, as the “covered” period.

Proceeds can be used during the 8-week period after loan origination for payroll costs (including costs related to the continuation of group health care benefits, among other things), mortgage interest payments, rent, utilities, and interest on prior debt.

Read about the full details of the Paycheck Protection Program HERE

Paycheck Protection Program Loan Application - 3/30/20

The Treasury Department has changed the link to the PPP loan application. The new link is here.

As a testament to how fast things are moving, the form for filing for a Paycheck Protection Program (PPP) loan has just been released, but applications cannot be submitted until April 3. It is here. We will be analyzing it further, and are awaiting the guidance and accompanying regulations.

C.A.R.E.S. ACT - 3/30/20

The Coronavirus Aid, Relief and Economic Security ("CARES") Act, among other provisions, provides special rules for use of retirement plans that provide much needed relief to many Americans affected by the COVID-19 crisis. Significant provisions of the bill are the coronavirus-related hardship distributions and loans which give qualified individuals access to their individual retirement plan accounts without the current restrictions, and in some cases penalties.

We have outlined the retirement-related provisions of the bill below, and will have our systems and forms modified to accommodate these provisions effective Monday, March 30, 2020.

A CORONAVIRUS-RELATED DISTRIBUTION is any distribution from an eligible retirement plan made on or after the date of the enactment of this Act and before December 31, 2020 to Qualified Individual.

A QUALIFIED INDIVIDUAL is one:

  1. Who is diagnosed with the virus with coronavirus disease 2019 (COVID-19) by a test approved by the Centers for Disease Control and Prevention
  2. Whose spouse or dependent is diagnosed with such virus or disease by such a test
  3. Who experiences adverse financial consequences as a result of being quarantined, being furloughed or laid off or having work hours reduced due to such virus or disease,
  4. Being unable to work due to lack of child care due to such virus or disease, closing or reducing hours of a business owned or operated by the individual due to such virus or disease, or
  5. Other factors as determined by the Secretary of the Treasury (or the Secretary’s delegate).

Coronavirus-related distribution provisions:

  • Waiver of the 10% early withdrawal penalty on distributions up to $100,000 Distribution may be repaid during the 3-year period beginning on the day after the date distribution is received
  • Distribution repayment will not be subject to the contribution limits
  • Tax on the income from the distribution may be included ratably over the 3-taxable year period beginning with taxable year in which the distribution is taken
  • Coronavirus-related distributions will not be eligible for a rollover
  • Administrator of an eligible retirement plan may rely on an employee’s certification that the employee satisfies the conditions under Qualified Individual in determining whether any distribution is a coronavirus-related distribution

Coronavirus-related loan provisions:

  • A qualified participant may receive a loan during the 180- day period beginning on the date of the enactment of this Act equal to the lesser of $100,000 or 100% of the participant’s vested balance in the plan. This is double the amount of the current retirement plan loan limits.
  • Participant with an outstanding loan from a qualified employer plan, with a repayment due after the date of the enactment of this Act through 12/31/2020 may delay the loan repayments for 1 Year.
  • Subsequent repayments with respect to any such loan shall be appropriately adjusted to reflect the delay in the due date.

Other Provisions of the Bill

  • Temporary Waiver of Required Minimum Distribution Rules
  • Individuals with a required minimum distribution due for 2020 may elect to use the RMD waiver and keep those amounts in the plan. This includes the 2019 RMDs due by 4/1/2020.
  • RMDs due in 2020 that have already been distributed may be rolled to a qualified plan.

Plan Amendments:

Plans can implement these provisions immediately after the enactment of this Act, provided the plan is amended by the 12/31/2022.

Please feel free to reach out to us if you have any questions or concerns about these new requirements at 405-917-1020 or info@partners-hr.com.

COVID-19 Legislation Change - 3/26/20

Congress recently passed legislation in response to COVID-19 that may impact your company and your employees. While more legislation is in the works, we wanted to give you a quick summary of the key provisions and changes you need to be aware of. These provisions take effect on April 1, 2020 and only affect employers with fewer than 500 employees.

  • Emergency Family and Medical Leave: Employees can now take up to 12 weeks of job protected leave (2 weeks unpaid followed by 10 weeks of paid leave up to monetary caps) if they are unable to work (including by telecommuting) due to a need to care for a child whose school or childcare provider is closed or unavailable due to the Coronavirus outbreak.
  • Emergency Paid Sick Leave: Employers must offer employees 80 hours of paid sick leave (up to monetary caps) to quarantine, to seek a diagnosis or preventive care for coronavirus, or to care for a child. Paid Leave Tax Credits: To help bear the cost of the new paid-leave requirements, employers can offset the amounts paid from employment taxes and otherwise seek refunds additional payments.
  • Employer Notice: Employers will be required to post notice of the new provisions in a conspicuous place on their premises. Employers may also satisfy the notice requirement by emailing or direct-mailing the notice to employees, or posting the notice on an employee information internal or external website. A sample notice poster can be found HERE.
  • Exemptions: Employers that are health providers or emergency responders may exempt themselves from these requirements. Furthermore, employers with fewer than 50 employees may seek an exemption with the Department of Labor if compliance will threaten the business as an ongoing concern.
  • Prohibitions and Penalties: Employers are prohibited from retaliating against employees who seek to take this expanded leave. Employers found to be in violation of the requirements may be subject to penalties and enforcement under the Fair Labor Standards Act or the Family and Medical Leave Act.

For your convenience, here are links to important information and resources from the Department of Labor:

Please feel free to reach out to us if you have any questions or concerns about these new requirements at 405-917-1020 or info@partners-hr.com.

Coronavirus Governor Stitt Orders - 3/24/20

As we are continuing to monitor reports of the impact of the Coronavirus (COVD-19). We wanted to address the orders that Governor Stitt issued on March 24, 2020 regarding the closing of non-essential businesses.

As financial institutions are considered essential services by the federal government, Partners HR will remain open to serve you.

As you may have noticed, many financial institutions have significantly limited their person to person contact through their lobbies, in some cases only allowing transactions to be done online.

We would like to remind you that Partners HR offers multiple ways to pay your employees outside of a physical check. We offer direct deposit into a bank account. We also offer a convenient pay card that allows employees to access money at ATMs or use as a debit card.

You can access a copy of the Governor's Amendment HERE.

If you would like more information on our payment methods or if you have any other questions please contact us at 405-917-1020 or info@partners-hr.com.

Coronavirus Response Bill - 3/17/20

Today there are approximately 167,000 confirmed cases of COVID-19, the respiratory disease caused by the novel coronavirus, in 135 countries around the world, with the United States currently confirming more than 3,000 cases. 
 
This past Friday, President Trump declared a national state of emergency in response to this pandemic. With the state of emergency declared, the Department of Labor put together a helpful Q&A guide for employers seeking to clarify current payroll and leave obligations to employees and offices affected by the coronavirus.
In addition to the Friday's State of Emergency, the U.S. House of Representatives are working to pass the Families First Coronavirus Response Act—an emergency spending bill that provides free coronavirus screening tests and paid employment leave for individuals affected by COVID-19.
 
The Coronavirus Response Act provides for expansive and unprecedented employment protections for eligible individuals impacted by COVID-19 who work for employers that employ fewer than 500 employees, including:
 
Paid sick time (up to 80 hours or two weeks of wages)
Family and Medical Leave (up to 12 weeks—10 of which shall be paid by the employer)
As currently drafted, these employee leave programs and protections must be implemented by covered employers (those who employ fewer than 500 employees) no later than 15 days after enactment—so companies should assess potential implementation challenges now, while waiting for the final version to be passed by the Senate and signed into law.
 
Paid Sick Time
The Act provides that all public employers and all private employers that employ fewer than 500 employees must immediately provide eligible full-time and part-time employees affected by coronavirus up to 80 hours of paid sick time, regardless of how long the employee has been employed by an employer.
 
Paid sick time may be used by an employee if:
  • Employee must self-isolate after diagnosis with coronavirus or to obtain diagnosis or care for the symptoms of coronavirus,
  • Employee’s presence in the community may jeopardize the health of others because they have been exposed to or have the symptoms of the coronavirus,
  • Employee must care for their child(ren) if their school or childcare is closed due to the coronavirus or they have been exposed to the coronavirus
  • Employee must care for a family member who must self-isolate after diagnosis with coronavirus or who must obtain medical diagnosis or care related to the coronavirus.
  • All paid sick time must be paid at 100% of the employer’s regular wages for absences related to the employee’s need to self-isolate or seek medical care related to their own exposure to coronavirus. However, any sick time provided for an employee to care for a family member in connection with exposure to the coronavirus or school/childcare closings must be paid at two-thirds of the employee’s regular wages.
 
With respect to any employer that currently provides paid leave, the paid sick time under this Act must be in addition to the existing paid leave—the employer may not change existing paid leave after enactment of the Act to avoid this provision. Further, the Act specifically provides that it does not preempt any existing state or local paid sick leave benefits.
 
An affected employee may first use this paid sick time for eligible purposes related to the coronavirus pandemic. Employers may not require an employee to use otherwise accrued sick time or other paid leave before using the paid sick time granted by the Act. Further, an employer may not require that an employee search for or find a replacement to cover the hours taken by the employee as paid sick time.
 
Employers are prohibited from taking any disciplinary action or discriminating in any manner against an employee who takes leave in accordance with the Act and has filed a complaint or instituted any proceeding under or related to this Act or has testified or is about to testify in any such proceeding.
 
Notice Requirements
Information regarding employee eligibility for paid leave under the Act must be posted where employee notices are customarily posted. The Secretary of Labor will make available a compliant model notice no later than 7 days after the date of enactment of the Act.
 
Penalties
An employer who does not permit its eligible employees to take sick leave time under the Act will be deemed to be in violation of the Fair Labor Standards Act and be subject to the penalties for that violation. An employer who willfully discriminates or retaliates against an employee in connection with this Act will be deemed to have violated Section 15(a)(3) of the FLSA and will be subject to the penalties associated with that violation.
 
Emergency Paid Leave—Amendment to the Family and Medical Leave Act
As approved by the House of Representatives, the Act amends the federal Family and Medical Leave Act and creates a new subsection of paid medical leave under the FMLA to provide up to 12 weeks of family and medical sick leave during a public health emergency related to the coronavirus to all eligible employees, 10 weeks of which must be paid by the employer at a rate of no less than two-thirds of the employee’s usual pay. This extended paid leave is available only to employees who work for companies employing fewer than 500 employees.
 
Although all employers with fewer than 500 employees are covered by the current version of the Act, the Secretary of Labor will have the option of exempting certain small businesses with fewer than 50 employees, if it determines that providing paid leave under the Act “would jeopardize the viability of the business as a going concern.” Additionally, employers with fewer than 50 employees would not be subject to private lawsuits filed by employees for violations of this Act–only actions brought directly by the Department of Labor.
 
The first 14 days for which an eligible employee impacted by the coronavirus takes leave may be unpaid. Alternatively, an employee may elect to substitute any accrued vacation leave, personal leave, or medical or accrued sick leave or the above-described paid sick time for the unpaid leave. However, an employer may not require an employee to substitute paid leave for leave under the Act.
 
An employee will be eligible for this emergency paid sick leave if they have been on the job for at least 30 days and:
 
  • The employee needs to be quarantined for potential exposure to or treated for COVID-19,
  • The employee needs to stay home from work to care for a family member quarantined due to exposure to or symptoms consistent with COVID-19, or
  • The employee needs to stay at home because their child(ren)’s school or childcare facility has closed unexpectedly due to the coronavirus.
 
Certain health care providers and emergency responders are not included within the definition of “eligible employees” under the Act.
 
For Scenarios see here
 

 

Coronavirus Response Bill - 3/17/20

We are continuing to monitor reports of the potential impact of the Coronavirus (COVD-19). We want to assure you that Partners HR is here to serve your HR and payroll needs. During this evolving situation, our main priority is the health and safety of our clients, our team, and our community.

Our offices will remain open to serve you. To ensure we are following best practices to mitigate risks, we have implemented precautionary measures, including enhanced cleaning and sanitation for our office and special cleaning stations for high-touch surfaces. We have a contingency plan to ensure daily operations are uninterrupted, should the situation with Coronavirus escalate further.

We are actively monitoring government action around any payroll tax initiatives and we will pass along any information we receive to our clients.

We strongly encourage you and your employees to use Partners’ digital tools and other resources for your payroll needs. Clients can process payroll, view documents and manage employees online. Employees can view check stubs, enroll in direct deposit, update personal information and reprint their W-2 online. It’s easier and faster (in most cases) to manage your account digitally, especially given the ever-changing climate as it relates to Coronavirus.

Employees can access their account online HERE (First-time users will be required to REGISTER) To set-up online payroll, please contact your payroll specialist at 405-917-1020.

Linked below are some important documents from the CDC that you can download and distribute to your employees or post at your place of employment

We will continue to monitor the situation and evaluate additional measures to support our clients and our community as needs arise.


 

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