Update March 22, 2020

Families First Coronavirus Response Act

The DOL, IRS, and Treasury Department announced on Friday that businesses can immediately start using the tax credits made available by the FFCRA for the required paid sick leave and expanded FMLA requirements.

Information from the IRS website:

Key Takeaways from the IRS

• Paid Sick Leave for Workers
  • For COVID-19 related reasons, employees receive up to 80 hours of paid sick leave and expanded paid child care leave when employees’ children’s schools are closed or child care providers are unavailable.
• Complete Coverage
  • Employers receive 100% reimbursement for paid leave pursuant to the Act.
    • Health insurance costs are also included in the credit.
    • Employers face no payroll tax liability.
    • Self-employed individuals receive an equivalent credit.
• Fast Funds
  • Reimbursement will be quick and easy to obtain.
    • An immediate dollar-for-dollar tax offset against payroll taxes will be provide.
    • Where a refund is owed, the IRS will send the refund as quickly as possible.
• Small Business Protection
  • Employers with fewer than 50 employees are eligible for an exemption from the requirements to provide leave to care for a child whose school is closed, or child care is unavailable in cases where the viability of the business is threatened.
• Easing Compliance
  • Requirements subject to 30-day non-enforcement period for good faith compliance efforts.
  • To take immediate advantage of the paid leave credits, businesses can retain and access funds that they would otherwise pay to the IRS in payroll taxes. If those amounts are not sufficient to cover the cost of paid leave, employers can seek an expedited advance from the IRS by submitting a streamlined claim form that will be released next week.

Exemption for businesses with less than 50 employees

Business can apply for exemption to the required paid sick leave provision of the FFCRA if providing paid sick would jeopardize the business to continue.  The process for apply for the exemption has not been published as this law does not go into effect until April 2, 2020.

DHS relaxed I-9 review requirements

The Department of Homeland Security has relaxed the requirements to review I-9 documentation in-person.  If you are hiring employees and are requiring employees to telework you can review the documentation via electronic means.  Once employees are able to return to the office, you have three days to review the documentation in-person.  You must include notes on the I-9 stating you reviewed the documentation electronically and then in-person.  See here for more information.

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Update March 19, 2020

 

Friends and Colleagues,

 

In an effort to help as many people as possible through this difficult time I am gathering some resources for you.  If you have questions or want to run something past me, please call or email me. I am happy to talk with you for no charge for my time.

 

If you are having to reduce your teams’ hours and furlough them for a temporary period, here are some resources for them:

 

Unemployment

• The state has removed some of the requirements for unemployment benefits. (1) the waiting period and (2) job search requirements.
• People can use the reason COVID-19 for their claim.
• When the business receives the notification of claim, you can respond that the reason for the loss of hours, furlough is due to COVID-19 or a required closure by state/city/county statutes.
• Employers can submit a mass claims report to the Texas Workforce Commission to help streamline the process for your employees. https://twc.texas.gov/businesses/mass-claims-unemployment-benefits
  • You can upload a CSV file with all the information on it.
  • You won’t get an individual notice for each employee that applies.
  • To complete your Mass Claim Request, you will need:
    • Your company’s name, address, telephone number, fax number, and the contact information for an authorized representative with signature authority.
    • Your TWC Tax Account Number
    • The names, home addresses, and Social Security numbers of all the employees who will be laid off.
  • Individuals can apply for benefits here: Website to apply: https://twc.texas.gov/jobseekers/unemployment-benefits-services#applyBenefits
  • Letter to Employers from Texas Workforce Commission: https://twc.texas.gov/files/agency/covid-letters-texas-employers-twc.docx
  • FAQs for Employers: https://twc.texas.gov/files/agency/faq-texas-employers-twc.docx

Companies Hiring Temporary Employees

• A number of companies are looking for temporary help during this time.
  • Grocery stores like HEB, Kroger, Albertsons, Tom Thumb and Randalls
  • Delivery services like GrubHub, Uber Eats, Amazon, Fedex
  • In Houston, UTMB is looking for help.

Credit Cards, Mortgages, Car Payments

• Talk to your credit card company, mortgage lender, and car loan providers to see what help is available during this time.

Families First Coronavirus Response Act

• President Trump signed into law this bill that requires employers with less than 500 employees provide paid sick leave and expands Family Medical Leave Act. Here are some links that help walk through the bill.
  • https://s3-us-west-2.amazonaws.com/lockton-corporate-website/Compliance-Alerts/20200316-Coronavirus-bill-table.pdf
  • https://www.lockton.com/insights/post/coronavirus-house-imposes-temporary-paid-leave-and-healthcare-mandates-sena
• This does not go into effect until April 2, 2020. There is still some time to plan and understand it.
• As more information is learned, I will provide additional resources.

 

Best Practices

• Ensure you are keeping good documentation on what you are telling your employees.
  • When their last day of work is, next steps, where to go for information, etc.
  • This helps when they file an unemployment claim and when you get asked for more information.
  • Furloughing employees gives you more flexibility than laying them off. You don’t have to rehire them and you can have them work one week and then not work for some period of time. Just be careful with exempt employees and having them work shorten pay periods.
• Stay in contact with your employees while they are off. By staying connected, you will keep them engaged which will help with retaining them.
• All other regulations still apply in terms of Wage and Hour, OSHA, Department of Labor, Worker’s Compensation, and others.