Coronavirus-19 Employer Resources

Disclaimer:  This is for informational purposes only.  Check with your accountant and/or banker for advice before proceeding with any business decisions related to the information posted here.

CARES Act - Payroll Protection Program (PPP)

Apply for this potentially forgivable loan to cover the costs of payroll, rent/mortgage interest, utilities and interest on previously obtained debt.  Begin applying April 3, 2020, or as bank applications become available.  You may also apply for the EIDL (see below) to give you the best chance of receiving funds as soon as possible.  The EIDL "advance" will be deducted from your PPP loan if you qualify for and receive both.  The funds from the two programs must be used for different expenses in order to receive the PPP forgiveness.

SBA Loan Forgiveness Application - Form 3508
PPP Loan forgiveness application.
SBA Form 3508 PPP Forgiveness Applicatio[...]
Adobe Acrobat document [293.6 KB]

Latest PPP FAQs from SBA - 5/3/2020 

** Update -  4/27/2020 - SBA will resume accepting applications.

**Update - 4/16/2020 - PPP funds have been depleted.  SBA is no longer accepting applications. 

Find Approved Lenders here

Wisconsin PPP lenders
Wisconsin_PPP_lenders.xlsx
Microsoft Excel sheet [20.5 KB]

Find SBA Counselors here

PPP Loan Estimator
Use this worksheet to aid in calculating estimated Payroll Protection Program loan and forgiveness amounts.
PPP Worksheet.xlsx
Microsoft Excel sheet [13.3 KB]
SBA Paycheck Protection Program Application
Use this to prepare for filing an application with your financial institution beginning Friday, April 3, 2020.
PPP Application 2020 04-03-20.pdf
Adobe Acrobat document [190.7 KB]
CARES Act Bill - PPP Detail
View the actual text of the PPP in the CARES Act Bill passed on March 27, 2020.
CARES BILL - PPP.pdf
Adobe Acrobat document [63.9 KB]

Good reading:        

           

           Forbes:  For Up To 100% Loan Forgiveness, Take These Three Steps the Very Moment You Get Your Loan - 4/23/2020

 

           Verrill:  PPP Loan Forgiveness: Further Guidance on the Math - 4/13/2020

 

            AICPA:  AICPA Applauds Additional Clarity in Treasury FAQs... 4/7/2020

 

           Forbes:  How To Calculate Payroll Costs For Your Paycheck Protection Program Loan  - 4/5/2020 (PPP payroll tax calculation is not correct in this article)

 

           Forbes:  Paycheck Protection Program Loans: Three Things The SBA And Banks Need To Agree On Now - 4/5/2020

https://clark.com/ - Excellent Podcasts - check out 4/7/2020 regarding the PPP & EIDL

PPP LOAN FORGIVENESS CALCULATION:

       (KEEP RECORDS/RECEIPTS FOR ALL EXPENSES!!)

 

FORGIVABLE EXPENSES (8-week period from date funds received):

1.  Payroll expenses:  gross wages, SUTA tax, employer's portion of health insurance, employer's portion of retirement contributions.

2.  Mortgage interest:  interest on business and real property.

3.  Business rent:  business and real property lease payments.

4.  Business utilities:  electricity, gas, water, transportation, telephone, and/or internet - placed in service prior to February 15, 2020

Verify these expenses with the final SBA rules when released.

PRO-RATED ADJUSTMENTS TO FORGIVABLE EXPENSES:

1.  At least 75% of loan proceeds must be spent on payroll expenses.
2.  Must maintain number of full-time equivalant employee headcount relative to comparable period.  Given until June 30, 2020, to rectify shortage. 
3.  Must maintain salary levels at 75% of pre-disaster levels.  Given until June 30 to rectify.
4.  PPP forgiven loan proceeds will not be taxable for federal or Wisconsin (sec. 18) purposes.  However, the expenses paid with the forgiven proceeds cannot be written off as business expenses for income tax purposes per the IRS. (This is being challenged as it would negate the intended purpose of loan forgiveness.)

Note - this information is changing frequently, so please check with federal and state agencies to get the most current information before making any decisions regarding closures, wages and financing options.

SBA Economic Disaster Loans

**Update - 4/27/2020 - SBA will resume accepting applications as soon as they get caught up.

**Update - 4/16/2020 - EIDL funds have been depleted.  SBA is no longer accepting applications.

WISCONSIN has been declared an economic disaster area.  SBA disaster loans are not new, but the (up to) $10,000 forgivable emergency grant is something to get excited about.  Loan proceeds can be used for retaining employees, costs due to supply chain interruptions, rent/mortgage payments and to repay other previously obtained obligations.  See the SBA website for details.  These loans can be applied for along with the PPP loans.  The funds cannot, however, be used for the same expenses.

 

In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.

 

 

 

 

 

 

 

04/14/20 - SBA finally makes clear that the $10,000 advance will be based on the businesses pre-disaster (1/31/20) employee headcount.  They will award $1,000 per employee up to 10.  Any EIDL advance awarded to a business will be deducted from the forgivable portion of a PPP loan if both are applied for and received.

Note - this information is changing frequently, so please check with federal and state agencies to get the most current information before making any decisions regarding closures, wages and financing options.

Employee Retention Credit 

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted on March 27, 2020, is designed to encourage Eligible Employers to keep employees on their payroll, despite experiencing economic hardship related to COVID-19, with an employee retention tax credit (Employee Retention Credit).

The Employee Retention Credit is a fully refundable tax credit for employers equal to 50 percent of qualified wages (including allocable qualified health plan expenses) that Eligible Employers pay their employees. This Employee Retention Credit applies to qualified wages paid after March 12, 2020, and before January 1, 2021. The maximum amount of qualified wages taken into account with respect to each employee for all calendar quarters is $10,000, so that the maximum credit for an Eligible Employer for qualified wages paid to any employee is $5,000.

Note - this information is changing frequently, so please check with federal and state agencies to get the most current information before making any decisions regarding closures, wages and financing options.

Payroll Tax Deferrals

Employers may defer the employer portion of social security taxes for wages paid between March 27 and December 31, 2020.  The taxes will be due 50% on December 31, 2021 and 50% on December 31, 2022.  No proof of economic impact from COVID-19 is required.

IRS FAQs - employers may use this program along with the PPP program up until their PPP loan is forgiven.

CARES Act Sec. 2202 - P/R Tax Defer
The actual text regarding the payroll tax deferral program.
P-R TAX DEFER.pdf
Adobe Acrobat document [348.7 KB]

Note - this information is changing frequently, so please check with federal and state agencies to get the most current information before making any decisions regarding closures, wages and financing options.

CARES (Coronovirus Aid, Relief and Economic Security) Act

The President signed the CARES Act, March 27, 2020, which brings economic relief to millions of Americans, businesses and medical facilities.  Read the congressional summary here.

An easy to understand summary of the CARES Act.

Individual $1,200 Economic Impact Payments

"Save Small Business" Grants

**Update - Funds have currently run out, but check back often.

"Funded by corporate and philanthropic partners, the Save Small Business Fund is a collective effort to provide $5,000 grants to as many small employers as we can. We hope these supplemental funds will help you get through the next days and weeks."   

An initiative of the U.S. Chamber of Commerce Foundation

Wisconsin News

Wisconsin Governor Evers has issued Emergency Order #12.  This "Safer-At-Home" order goes into detail regarding which businesses are essential.  This will be in effect from Wednesday, March 25, through April 24, 2020 unless superceded by future orders.

Wisconsin Unemployment

4/15/20 - Today, the Senate passed and the Governor signed the Wisconsin COVID Response Bill.  Read the summary here.  Unemployment specific info here.

4/14/20 - The Wisconsin Legislature passed the COVID-response bill which will, among other things, eliminate Wisconsin's one-week waiting period for receiving unemployment benefits.  The senate is expected to vote on the bill April 15.  The UI measure will be retroactive to March 12.

       JS Online - More than 300,000 Wisconsin residents . . . - 04/14/2020

       Daily Reporter - Assembly OKs COVID-response Bill . . .  - 04/14/2020

4/10/20 - Wisconsin unemployment claims and benefits are being delayed because of the sheer number of filers and because the State is not yet capable of processing the new federal funds ($600).  Benefits should be retroactive to the initial time of unemployment.

3/27/20 - The new CARES Act of March 27, 2020, has eliminated the one week waiting period and provides an additional $600/week to the maximum allowable UI benefits for the first four months of claims.  States are scrambling to build systems to process this.

Wisconsin Withholding Tax Return Deferral

Federal & State Employment FAQ

Families First Coronavirus Response Act, H.R.6021

 

On the evening of March 18, 2020, the President signed the Families First Coronavirus Response Act which will provide relief to employees and employers affected by COVID-19.  The relief is in the form of a credit taken by the employer against their payroll tax obligations and, if that is not sufficient, by way of an expedited request for reimbursement.  The bill has temporarily modified the FMLA (Family and Medical Leave Act) and is now required for employers with fewer than 500 employees (previously 50 or more).  However, employers with fewer than 50 employees can be exempted from the new Act if it would jeopardize the viability of their business.

 

The new requirements are in effect for leave taken from April 1, 2020, through December 31, 2020.

 

In summary:

"Generally, the Act provides that employees of covered employers are eligible for:

  • Two weeks (up to 80 hours) of paid sick leave at the employee’s regular rate of pay where the employee is unable to work because the employee is quarantined (pursuant to Federal, State, or local government order or advice of a health care provider), and/or experiencing COVID-19 symptoms and seeking a medical diagnosis; or
  • Two weeks (up to 80 hours) of paid sick leave at two-thirds the employee’s regular rate of pay because the employee is unable to work because of a bona fide need to care for an individual subject to quarantine (pursuant to Federal, State, or local government order or advice of a health care provider), or to care for a child (under 18 years of age) whose school or child care provider is closed or unavailable for reasons related to COVID-19, and/or the employee is experiencing a substantially similar condition as specified by the Secretary of Health and Human Services, in consultation with the Secretaries of the Treasury and Labor; and
  • Up to an additional 10 weeks of paid expanded family and medical leave at two-thirds the employee’s regular rate of pay where an employee, who has been employed for at least 30 calendar days, is unable to work due to a bona fide need for leave to care for a child whose school or child care provider is closed or unavailable for reasons related to COVID-19."

 

DOL Q&A relating to the FFCR.

 

DOL easy to read summary here.

 

House Appropriations Committee's summary of the bill.

 

Find an explanation of the Act by clicking here.

 

Read an editorial on the effect and cost of the new measures.

 

This is an excellent source for answers to many of your LEGAL questions regarding your responsibilities as an employer.

Quick look at layoffs, shutdowns, sick pay, etc. 

 

  • Infected Employee: If an employee notifies you that he/she has been diagnosed with Coronavirus, you should immediately contact your local health department and the state department of public health to find out what you should do. You should then tell all employees that they may have been exposed, but you must keep the infected employee's identity confidential. 
  • Sick/Quarantined Employee: If an employee is out because he/she or a family member is sick with the Coronavirus, you must pay him/her for any work he/she does from home. Hourly employees must be paid for actual time worked. Salaried exempt employees must be paid their full weekly salary if they perform any work during a given week (with the caveat that deductions from pay may be made for absence of one or more full days due to sickness or disability, if made in accordance with a bona fide PTO policy). If employees are out and do not work from home, you should pay them according to your sick/paid time off policy. After employees exhaust any paid leave, the employer does not have to pay them as long as they do not do any work from home. 
  • Business Closure: If your business is forced to close due to reasons related to the Coronavirus, all employees should be paid according to the business' sick/paid time off policies. You must pay hourly employees only for the actual hours that they work; if your business is closed for longer than their sick or vacation time, you do not have to pay them once such sick or vacation time is exhausted. As for the exempt employees, you do not have to pay them if the business is closed for longer than their sick or vacation time if the business is closed for at least an entire work week and the employee performs no work. If you decide to allow exempt employees to work from home while your business is closed, or if your business is closed for less than a week, exempt employees who work any time during such week must be paid their regular weekly salary. If you do not want your employees to work while at home, you may wish to tell your employees not to work. If you are going to allow hourly or exempt employees to work from home while your business is closed, you should require them to keep accurate records of their hours worked and tasks completed.

Modified from information provided by the WATDA 03/12/2020

Wisconsin unemployment Q&A:

 

WISCONSIN UNEMPLOYMENT COVID-19 Q&A 

 

MORE EMPLOYER & EMPLOYEE Q&A

       Keep in mind the WI FMLA applies to employers with 50+ employees

MORE EMPLOYER Q&A

          Find information regarding corporate officer coverage for unemployment.

"Generally, corporate officers are limited to 4 weeks of benefits depending on their percentage of ownership and/or relationship to owners of the business. Should the corporation cease operations due to economic inviability, the officer/owner may be eligible for unreduced benefits." 

 

EMPLOYEE UNEMPLOYMENT RESOURCE

 

PRINTABLE - EMPLOYEE INFORMATION ON FILING FOR BENEFITS

 

General COVID-19 information:

 

WISCONSIN DEPARTMENT OF HEALTH SERVICES (for the most current medical guidance)

 

CDC GUIDANCE FOR BUSINESSES AND EMPLOYERS

2020 Federal

  Banking Holidays

 

Wednesday Jan. 1
Monday Jan. 20
Monday Feb. 17
Monday May 25
Friday Jul. 3
Monday Sep. 7
Monday Oct. 12
Wednesday Nov. 11
Thursday Nov. 26
Friday Dec. 25

 

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