We recently received the following information from our industry association, NAPEO:
The President recently signed legislation that includes important provisions to help you keep your employees on the payroll during the COVID-19 crisis. These benefits are potentially available to all employers and, in some cases, the federal government will cover many of the costs of continuing to pay your employees for a period of time.
However, these new programs are complicated and there are important choices to make in deciding how to best utilize them. As outlined in more detail here, there are three new ways that you can now get assistance with payroll expenses during this crisis:
You Can’t Choose All of the Above
Each of these new alternatives provide very generous tax subsidies to assist employers. But you’ll still need to make choices.
It is critical that you carefully evaluate your eligibility for and the benefits of each of these options, since the amount of assistance provided by the federal government could vary greatly depending on which path you choose. Right now, we don’t have all the details and are awaiting further guidance from the SBA and IRS.
If you plan to take advantage of one of these programs, please indicate by checking an option on this election form and forward to your Human Resources Specialist or your Payroll Coordinator.
COVID-19 Paid Leave Requirements Take Effect April 1st
Keep in mind that the new rules requiring most employers to provide paid sick leave and FMLA leave for COVID19-related reasons will go into effect on April 1, 2020. The federal government will reimburse employers for most of those costs through a tax credit, although we are awaiting further guidance on this from the IRS, including information about how the credit may be advanced to employers. Significantly, recent guidance from the U.S. Department of Labor suggests that, if your business closes for any reason, the paid sick leave and expanded FMLA requirements would not apply as of the date your business closes.
We will keep you informed of additional information as it becomes available. Know that we are here as a resource for you and are working hard to be ready to assist you with implementing the choices you make.
Synergy is excited to be partnering with GMS, the largest privately held PEO in the country. Since 1989, countless organizations have trusted Synergy with their PEO and HR functions. This new partnership with GMS will enhance our ability to serve clients while providing the same high level of service our customers have come to know and expect.