Paid Leave for Employees if School/Daycare/Summer Camps are Closed

With the new school year fast approaching and some schools electing to delay the start date, we want to make sure employers are plugged into the requirements of FFCRA. Small businesses are required by the Families First Coronavirus Response Act (FFCRA) to give employees paid leave from wok in certain circumstances relating to COVID-19. One requirement is that the child’s school/daycare/summer camp must be unavailable because of COVID-19.

The below article from FUBA helps breakdown the requirements of FFCRA.

Small businesses are required by the Families First Coronavirus Response Act (FFCRA) to give employees paid leave from work in certain circumstances relating to COVID-19. Employees who cannot work due to very specific reasons related to COVID-19 are entitled to two weeks of paid leave, with an additional 10 weeks of paid leave if they have to stay home to care for a son or daughter whose school, daycare, or summer camp is closed due to COVID-19.

If you have an employee who cannot come to work because they have to take care of a child because the child’s summer daycare – a school, camp or other program in which the employee’s child is enrolled – is closed or unavailable for a COVID-19 related reason, the employee may be entitled to paid leave.

Keep in mind that the child’s school/daycare/summer camp must be unavailable because of COVID-19. School being closed for summer vacation does not qualify an employee for paid leave because school is always closed during the summer and that closure is not related to COVID-19. If school does not reopen in the fall due to COVID-19, that may qualify employees for paid leave. However, if schools reopen but the employee’s children are attending online or digitally, the employee may not qualify for paid leave.

If an employee requests paid leave, you should get the following:

  1. The employee’s name and the dates the leave is requested
  2. A statement of the COVID-19 related reason the employee is requesting leave
  3. A statement that the employee is unable to work or telework for this reason
  4. Documentation supporting the reason for leave

The employee also needs to give you the name and age of the child they will be taking care of, the name of the daycare/summer camp that has closed, and they must provide a statement that no one else will be caring for the child while the employee is on paid leave. If the child is older than 14, the employee must show that special circumstances require them to stay home with the child during daylight hours.

Employees taking paid leave because their child’s daycare/summer camp is closed due to COVID-19 must be paid two-thirds their regular rate of pay, up to $200 per day. Learn more about calculating pay here.

You can offset the cost of their leave by keeping a portion of the quarterly federal employment taxes you would otherwise deposit with the IRS. If the cost of the leave is more than your federal employment tax bill, you can request an advance refund from the IRS using form 7200. To claim a payroll tax credit, you must retain the documentation described above and comply with any IRS procedures for claiming the tax credit. For more information about how to claim these payroll tax credits and what documentation is required, click here. For more information about form 7200, click here.

Click here to learn about other reasons that entitle employees to paid leave.

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This article was written by FUBA Workers’ Comp

Hurricane Season Reminders

This year’s hurricane season runs from June 1st to November 30th. We encourage our clients to prepare their business for the 2020 Hurricane Season. Take action early to protect your assets and your people.

Pre-Planning

Review all of your insurance policies and understand what is covered.

Verify Employee Contact Information

Maintaining accurate employee contact information is critical during an emergency. COVID-19 has led to an increase in remote working and the need to know where each employee is located-not just in a directory, but in real time. Send a quick memo to your employees asking them to update their contact information. This will help management check on their well-being and keep them informed.

Build Your Emergency Plan

Refer to websites like FEMA and National Hurricane Survival Initiative to help you build your company’s emergency plan. You will want to include details on securing your business assets, ensure your data is backed up, review contracts, customer communication strategies, and recovery plan.

Create an Emergency Response Team

Define clear roles and responsibilities for essential staff members.

Group Management Services Acquires Corporate Business Solutions

GMS expands its footprint with addition of Georgia-based HR outsourcing provider.


prnewswire.com/news-releases

RICHFIELD, Ohio, June 19, 2020 /PRNewswire/ — Group Management Services Inc. announced today the acquisition of Corporate Business Solutions, a Georgia-based Human Resources Outsourcing provider.

CBS was founded more than 20 years ago as a third party 401(k) administrator, developing over time into handling a full array of HRO services. This acquisition will add about 70 clients and 3,500 worksite employees to GMS.

As a Professional Employer Organization (PEO), GMS provides a suite of comprehensive HR solutions, allowing clients to focus on core business. These services include Payroll, Human Resources, Risk Management, and Benefits.

Both organizations share an emphasis on giving their clients a competitive edge when it comes to the technology, service levels, and human resources they provide. This is evident in the fact that they share a 90-plus percent client retention rate, well over the industry average.

Find out how PEOs help businesses: https://www.groupmgmt.com/why-gms/education-center/what-is-a-peo/

GMS started in the Cleveland area in 1996, eventually expanding into Columbus and Cincinnati, and now have 10 offices nationwide. The acquisition of CBS will further extend their client base outside of Ohio and increase their presence in the Southeast.

“We’ve been trying to expand our footprint outside of Ohio and have been showing some success in the past five years,” GMS President Mike Kahoe said. “In 2014, we were 99 percent Ohio-based. Today we are 90 percent Ohio-based and this will move us closer to 80 percent, making us a more diverse company.”

CBS President Jim Karle adds, “The acquisition by GMS will enable CBS to further deliver on its promise to provide our clients a wide array of quality insurance products that are affordably priced. Enhancing our clients’ competitive edge has always been core to CBS – this accelerates our ability to do that for our many valued clients.”

GMS plans to continue their expansion and grow organically and through acquisitions moving forward. This is just the beginning of more to come.

About Group Management Services
GMS has partnered with more than 1,500 clients across the country, representing about 26,000 employees from 10 different locations throughout the United States. We enable those clients to outsource all their back-office functions the areas of payroll, human resources, risk management, and workers’ compensation. For more information on GMS, visit: https://www.groupmgmt.com/about-us/.

 

Businesses Can Defer Part of Their Payroll Tax Until Next Year

Employers are responsible for withholding Social Security and Medicare payroll taxes from their employees’ paychecks and paying these taxes along with the employer’s share to the IRS each month.  The Social Security tax is 12.4% total, with 6.2% withheld from the employee’s wages and the employer paying 6.2%.  The Medicare tax is 2.9%, with 1.45% withheld from the employee’s wages and the employer paying 1.45%.

As part of aid to businesses provided in the Coronavirus Aid, Relief and Economic Security Act (CARES Act), employers can defer depositing the employer’s share of Social Security taxes until December 2021. For payroll periods starting March 27th through the end of this year, employers may defer their share of the Social Security tax (6.2%) and not deposit it with the IRS. Instead of depositing the usual amount of payroll tax, employers can simply hold back their portion of the Social Security tax each month and use it for other operating expenses.  *Please note this only applies to the employer’s portion of the Social Security tax.  Employers may not defer the employee’s part of the Social Security tax, and employers must still deposit both the employee’s and the employer’s portion of the Medicare tax each month.

Employers who decide to defer their part of the Social Security tax have until the end of next year to start depositing the amount they deferred. Half of the deferred payroll tax amount must be deposited with the IRS on December 31, 2021, with the other half due by December 31, 2022.

All employers may take advantage of this payroll tax deferral, including employers who have received a Paycheck Protection Program (PPP) loan.

For more information from the IRS about payroll tax deferral, please click here.

This payroll tax deferral is not the same as the payroll tax credits that employers may take for providing paid leave to employees or the employee retention credit. The IRS has detailed information about these credits here.

Article originally posted on FUBA.org.

 

New Law Provides Flexibility on PPP Loan Forgiveness

Under a new federal law effective June 5, 2020, the requirements for PPP loan forgiveness have been relaxed in favor of small businesses.

What is included in the bill?

The bill, which passed with a bipartisan vote, makes the following amendments to the PPP to provide relief to borrowers:

  • Loan repayment terms—The bill extends the minimum loan term for unforgiven PPP loans from two years to five years.
  • Payroll costs vs. nonpayroll costs— For forgiveness eligibility, the bill reduces the portion of PPP funds that must be spent on payroll costs from 75% to 60%, and raises the nonpayroll cost limitation from 25% to 40%.
  • Covered period extension—The bill extends the covered period during which borrowers must spend the PPP funds to be eligible for forgiveness from eight weeks to 24 weeks from the date of origination of the loan.
  • Payroll tax deferment—The bill permits borrowers to defer payroll taxes without being penalized while still remaining eligible for loan forgiveness.
  • Extension of rehiring safe harbor—The bill extends the rehiring safe harbor by six months to provide borrowers with additional time to restore payroll levels or rehire employees without facing a reduction in the amount of forgiveness for which they are eligible. The original date was June 30, 2020, and the new date is Dec. 31, 2020.

In addition to the provisions above, the bill provides loan forgiveness eligibility exemptions for borrowers that are not able to rehire an employee or a replacement. There are also exemptions for loan forgiveness eligibility for borrowers that are not able to return to the same level of business due to complying with COVID-19-related orders or circumstances.

What’s next?

Borrowers should review the bill carefully and speak to their lender should they have any questions. In addition, borrowers should direct any questions regarding their PPP loan to their lender.

We will continue to monitor any additional developments regarding the PPP and deliver updates as necessary.

 

COVID-19 Workers’ Compensation Resources

Due to the nature of the COVID-19 pandemic, rules and regulations are constantly changing. You should be prepared to change your business practices if needed to maintain critical operations. Below are links to resources on how to keep your business, employees and customers safe.

Revised OSHA Recordkeeping Requirements for COVID-19

OSHA has announced revised COVID-19 enforcement polices as states reopen their economies and employees return to work. OSHA reminds employers they must make reasonable efforts to determine whether a COVID-19 case is work related. Click here to review OSHA’s COVID-19 workplace safety standards and guidelines.

When determining whether the employer made a reasonable work-relatedness conclusion, OSHA will consider if the employer investigated each case adequately. Suggested information that an employer should obtain, and document, are:

  • How the employee believes the illness was contracted;
  • Discussion regarding the employee’s work and out-of-work activities that may have led to the illness while respecting their privacy;
  • Review of the employee’s work environment for potential COVID-19 exposure; and
  • If the employer learns of additional information later, that information should be taken into account as well.

After completing a reasonable and good faith inquiry as described above, if the employer cannot determine whether it is more likely than not that workplace exposure played a causal role to COVID-19 illness contraction, the employer does not need to record the illness for OSHA. The investigation documentation should be maintained to demonstrate compliance with OSHA’s recordkeeping guidance.

Recording a COVID-19 case does not automatically mean the employer has violated any OSHA standard.

Protecting Workers From Coronavirus

What Is Coronavirus?
According to the World Health Organization(WHO), coronavirus is a family of viruses that cause illnesses ranging from the common cold to more severe diseases. Common signs of infection include headache, fever, cough, sore throat, runny nose and breathing
difficulties. In more severe cases, infection can cause pneumonia, severe acute respiratory syndrome, kidney failure and even death. Individuals who are elderly or
pregnant, and anyone with preexisting medical conditions are at the greatest risk of becoming seriously ill from coronaviruses.

How Does Coronavirus Spread?
Although the ongoing outbreak likely resulted from people who were exposed to infected animals, COVID-19 can spread between people through their respiratory
secretions, especially when they cough or sneeze. According the Centers for Disease Control and Prevention (CDC), the spread of COVID-19 from personto-person most likely occurs among close contacts who are within about 6 feet of each other. It’s unclear at this time if a person can get COVID-19 by touching a surface
or object that has the virus on it and then touching their own mouth, nose or eyes.

CDC Interim Guidance
In order to help employers plan and respond to COVID19, the CDC has issued interim guidance. The CDC recommendations include:

  • Actively encourage sick employees to stay home. Employees who have symptoms of acute respiratory illness are recommended to stay home and not
    come to work until they are free of signs of a fever and any other symptoms of COVID-19 for at least 24 hours, without the use of fever-reducing or other symptom-altering medicines. What’s more, employees should be instructed to notify their supervisor and stay home if they are sick.
  • Separate sick employees. Employees who appear to have acute respiratory illness symptoms (e.g., cough or shortness of breath) upon arrival to work or
    become sick during the day should be separated from other employees and be sent home immediately. Sick employees should cover their nose and mouth with a tissue when coughing or sneezing.
  • Emphasize hand hygiene. Instruct employees to clean their hands often with an alcohol-based hand sanitizer that contains at least 60%-95% alcohol, or
    wash their hands with soap and water for at least 20 seconds. Soap and water should be used preferentially if hands are visibly dirty.
  • Perform routine environmental cleaning. Employers should routinely clean all frequently touched surfaces in the workplace, such as workstations, countertops and doorknobs.