Weekly Client Update #8 During COVID Crisis

Greetings!

As we prepare to start another week, the country is in a state of flux that combines equal parts excitement and apprehension. People are desperate to get back to work and a semblance of the old normal.

At IMPACT, we’re seriously considering a new normal of operating without a traditional office or with a more flexible one incorporating platooning people in the office. We’ve been fully remote since March 12, which has been working out very well. Our lease ends at the end of May and we’ll go month-to-month for maybe 8 weeks as we make the final decision.

Legal Considerations with Returning to Work

There’s a good reason that business advocates in Congress have been pushing for liability protection for employers as we resurrect the economy: there are potential legal landmines everywhere. Consider the alphabet soup of employer laws/regulations that affect health & safety and the associated communications: OSHA, ADA, HIPPA, FFCRA. Several aspects of these various acts would seem to contradict each other. This article from SHRM touches on the issues.

Small Business Survey Pulse

I’ve previously mentioned my work with the State of Maryland on the U.S. Census. If you haven’t explored the various data sets on the census site, you should check it out. There is a ton of useful info. This link has the results of the Small Business Survey Pulse, including survey results on businesses’ cash on hand, missed loan payments, employee reductions, etc. and can be searched by industry sector and state.

PPP Loan Forgiveness Application

Hot off the presses, and official as of Friday night, here is the application for PPP loan forgiveness, and below are some important details..

Alternative Payroll Period

The PPP loan forgiveness forms give borrowers options to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles. If you process payroll bi-weekly, you can begin your 8-week payroll covered period on your first payroll date following the date you received the PPP funds. This may allow for more covered expenses to be forgiven vs beginning your 8 week payroll covered period on the date the funds were actually received.

Flexibility for eligible payroll and non-payroll expenses

The new application gives borrowers the flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan. Your payroll costs incurred but not paid during the last pay period of the payroll covered period are eligible for forgiveness as long as they are paid on or before the next regular pay period. Even though these funds are paid to the employee after the 8 week period, they are still eligible for forgiveness so make sure to include them in your calculation.

Eligible non-payroll costs of mortgage, rent, and utilities will follow the same rule. The costs incurred, but not paid, during the 8-week period are also eligible for forgiveness as long as they are paid by the next due date. For example, if your 8 week (56 day) period ends on June 30th and you haven’t received or paid your utility bill for the month of June, you can include this amount with what you have already paid during the 8-week period. Don’t forget that eligible non-payroll costs cannot exceed 25% of the forgivable amount.

Hospital Bed Decline Accelerates!

 

 

It’s very exciting to see the Acute Beds numbers continuing to fall in Maryland even as the more severe ICU beds are pretty flat. Let’s hope that everyone continues to behave responsibly as we all let the summer heat and sunlight do it’s virus-killing thing!

Take care, have a great week, and don’t hesitate to reach out if you need anything!

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