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The Department of Labor (DOL) has issued rules that exempt employers with fewer than 50 employees (“small business”) from its requirements if compliance would jeopardize “the viability of the employer’s business as a going concern.” The ruling states that an “authorized officer of the business” must determine whether the business meets the criteria for an exemption and must document the facts and circumstances that allow for the exemption. A business may be exempt from providing mandated paid sick leave or expanded family and medical leave requirements if they meet three conditions: The provision of paid sick leave or expanded family and medical leave would result in the small business’s expenses and financial obligations exceeding available business revenues and cause the small business to cease operating at a minimal capacity; The absence of the employee or employees requesting paid sick leave […]

Your Paycheck Protection Program Loan may be eligible for forgiveness by the Small Business Administration (SBA) under certain circumstances.  This is one of the key attractions of this program but we want you to be aware of the eligibility guidelines and records retention procedures that you must follow so that your loan can be converted into a grant. Use the PPP funds only for eligible uses At least 75% of the loan amount must go towards payroll costs (capped at $100,000 per employee) and all employees must be kept on the payroll or rehired by June 30, 2020.  Eligible payroll costs consist of all compensation, tips, payment for leaves, healthcare and retirement benefits, and relative payroll taxes. The remaining 25% can be used on other operating costs that were in effect before February 15, 2020, such as rent, utilities, and […]

Unfortunately, hackers and scammers are targeting small business owners accessing the Paycheck Protection Program, part of the $2 trillion stimulus package signed by the President last week.  Experts are estimating billions of dollars of fraudulent claims will be filed as banks themselves may be understaffed and ill-equipped to verify all the companies that will be applying for these 100 percent guaranteed, no fee SBA loans.  Here are things to know so you do not fall victim to one of these scams: The SBA does not initiate contact on either 7a or Disaster loans or grants.  If you are proactively contacted by someone claiming to be from the SBA, suspect fraud. Do not respond to any type of communication, including phone calls, emails, or text messages, from anyone claiming to be from the Treasury Department or the SBA offering you grants or […]

Effective April 1st, the U.S. Department of Labor (DOL) issued temporary regulations for the Families First Coronavirus Response Act (the “FFCRA”) that outlined the requirements for employees giving notice and the supporting documentation required. The FFCRA provides employers with fewer than 500 employees funds, in the form of refundable tax credits, to reimburse them for the cost of providing employees with paid sick and family and medical leave for reasons related to COVID-19, either for the employee’s own health needs or to care for family members. Up to two weeks of paid sick leave is available to qualifying employees.  An additional 10 weeks of partially paid expanded family and medical leave is available to some employees when their children’s school or place of child care is closed.  To request leave, an employee is not required to provide a note from a […]