COVID-19 Update May 4, 2020

Happy Monday!

The IRS/Department of Treasury answered a critical question in the FAQ they released yesterday, May 3rd.

The big question was: If you ask a previously laid off or furloughed employee to come back to the same job at the same rate, but they refuse to come back, would this person still count against the headcount you need to maintain in order for the PPP loan to be forgiven.

The short answer is NO. That’s great news. The key to this is that you must have a written offer to this person and some sort of documentation that they are declining the job. This documentation is critical to ensure you’re not held accountable for a headcount you can’t achieve and that you achieve the maximum level of loan forgiveness. If you need a job offer template, please let us know.

If you have questions about this, please contact me or one of our team members to answer any questions.

Lots of great articles to share today, as well as the Jefferson Parish Guideline for reopening businesses.

Today’s downloads:

6 factors to consider when taking temperatures of employees – Employers may be required to take the temperatures of employees when businesses begin to reopen in the coming days and weeks. Here are things to look out for in case you decide to do this.

Fear of Coronavirus is not covered by FFCRA – Employees who self-quarantine because they are afraid of catching the coronavirus aren’t covered by the FFCRA. This spells out the conditions under which an employee might be covered by the Families First Coronavirus Response Act.

Jefferson Parish Back to Business plan – this is the plan as of today for how Jefferson Parish plans to get everyone working again. This is well done and we believe that most parishes will follow this guideline.

IRS FAQ – This is the actual response that the Treasury Department put out yesterday in their FAQ to the question of whether an employee who declines to return counts against your PPP employee headcount mandate.

Weigh Risks in Using the FFCRA Business exemption – Before trying to make your business exempt from the Families First Coronavirus Response Act (FFCRA), you should 1) make sure you qualify and 2) conduct a thorough risk assessment. If you have fewer than 50 employees, you’ll want to fully understand the pros and cons of exempting out of the FFCRA.

Have a great day!

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