Rob, Scott, and Jason discuss payroll tax deferral (employer options and liability), including: what happens if an employee leaves, what large companies are doing, employer options, and more.
Human resources expert comments on President Trump’s newly implemented tax break
Starting today (Sept. 1), employers now have the option to stop withholding payroll taxes for their staff. The Treasury Department announced the option last week, detailing the new guidelines in a statement that offers a temporary deferral of the payroll taxes which employees pay into Social Security.
“Employers can opt to stop withholding payroll tax, provided an employee makes less than $4,000 on a biweekly pay period,” says Rob Wilson, President of Employco USA and human resources expert. “But this is only a deferral. Workers will need to repay the taxes by April 2021.”
Generally, employees and employers each pay 6.2% tax into Social Security, for a total amount of 12.4% per employee. However, under Pres. Trump’s new deferral, employers will have the option of not collecting the employee’s share. As a result, workers could see a bump in their paycheck – but next year, they will have to pay that money back or face financial penalties.
Wilson, who is the president of a national employment solutions firm, says that this will spell a major human resources headache for employers.
Employment expert discusses new findings which show a bleak economic future and increasing despair among employees
Mental health in the workplace has never been so tenuous. New research shows that both employers and employees are under extreme strain due to the coronavirus pandemic.
A recent survey performed by Employco USA found that many employers have a very bleak outlook for their economic future. 85% of employers don’t have a strong outlook on the economic conditions in the U.S. over the next 6 months, and over half of employers say that they are anticipating the need for more layoffs and furloughs in the next 6 months.
“According to our survey, we are seeing that the worst is far from over,” says Rob Wilson, President of Employco USA, an employment solutions firm with locations across the country. “Although many areas of the country are slowly opening up, it’s not going to be enough to help businesses make it to 2021 without laying off more employees.”
Rob, Scott, and Jason discuss President Trump’s four executive orders, including: student loans, evictions, additional federal unemployment, and differed payroll tax obligations, along with their own predictions and more.
Rob, Scott, and Jason discuss predictions for what’s next in stimulus, including: what’s worked in the past for small and medium sized businesses, the previous five rounds of legislation, federal unemployment benefits, what businesses need for round six, and more.
Employment expert discusses what small businesses can do when the funds run out
Congress resumed yesterday and later this week it is expected that Mitch McConnell will begin negotiations of a new stimulus package of $1.3 trillion under the Heroes Act.
“McConnell says the stimulus needs to be approved by Congress by August. If it is not approved by the time the Senate returns in August, businesses may not get any relief next month, which could be the final straw for many struggling businesses,” says Rob Wilson, employment expert and President of Employco USA, an employment solutions firm with locations across the country.
A recent Goldman Sachs survey showed that most small businesses who received funds via the Paycheck Protection Program will run out of money by August.
“Eighty-four percent of small businesses are going to be out of PPP funds by the first week of next month,” says Wilson. “And only 16 percent of those businesses believe that they will be able to make payroll with their existing funds unless another round of loans is provided.”
Wilson says that the Goldman Sachs survey further reveals that most small businesses say that they have not been able to regain their customer base.
Employment expert shares what employers need to know
With the new measures that Gov. J.B. Pritzker just released for Illinois’s reopening, many employers are scratching their heads as they consider the complicated, multi-tiered plan which dictates their economic future.
“The governor’s plan is structured across 11 different regions with three industry-specific tiers,” says Rob Wilson, President of Employco USA and employment trends expert. “These tiers detail numerous criteria that need to be met in order for the reopening to continue. If mitigations occur, such as sustained hospital admissions, sustained positive cases, or decreased capacity of hospital beds, we will see regions and industries shut down once again.”
Wilson says that while this plan was built to make reopening as safe as possible, it is causing confusion for employers who don’t have a clear idea of how they can move forward and whether they can require employees to return to work.
“Right now, we are in a ‘watch and wait’ phase, with many people still afraid to return to work,” says Wilson. “We are encouraging our clients to send out comprehensive surveys to their staff to help them identify people who do want to return to work and under what circumstances. Some employees may be high-risk or live with someone who is high-risk, such as their spouse or child or elderly family member. In these cases, returning to work may not be advisable.”
Join Employco USA to learn about the LATEST UPDATES to the Paycheck Protection Program (PPP) following the enactment of the Flexibility Act and revised forgiveness applications.
During this FREE webinar, we’ll:
- Summarize the updated regulations and instructions released on June 5th and June 17th
- Learn the differences available between the 8-week and 24-week forgiveness periods
- Discuss the new options to setup your measurement period for payroll and non-payroll costs
- Review the new EZ Forgiveness application
- Examine the new wage limits if the 24-week option is selected
- Provide details on how to calculate a FT vs FTE employee
- Discuss tips to maximize the forgiveness, and talk about the rules for the portion of the loan that is not forgiven
- Review how the forgiveness evaluation limits owners’ compensation
You’ll also be able to get some clarity on human resource issues including unemployment and payroll. Employco provides HR and payroll solutions to businesses across the country.
There will be a brief presentation to begin the session, but most of the time will be dedicated to answering your specific questions!
You’ll be able to join us at 11:00am CT on Friday, June 26th from your computer, tablet, or smartphone (you can also dial-in):
You can also use our registration form to submit questions you’d like to see answered/covered during the webinar.
Rob, Scott, and Jason discuss reopening the workplace; from performing a building walkthrough to identifying hazards and how to address them, optimizing your HVAC filtration system, following CDC recommendations, conducting an employee survey, limiting staff back at one time, having a plan in place if someone shows symptoms, and more.
June 18, 2020 (UPDATE)
On June 16th, the U.S. Small Business Administration (SBA) and the Treasury Department released a new set of forgiveness application forms and instructions to help borrowers navigate the Paycheck Protection Program (PPP) loan program. The documents incorporate the changes made through the PPP Flexibility Act passed on June 5th.
Revised PPP Loan Forgiveness Application and Instructions:
EZ PPP Loan Forgiveness Application and Instructions:
The EZ form can be used if the borrower:
- Is self-employed with no employees; or
- Did not reduce employee pay by more than 25%; and did not reduce the number or hours of employees; or
- Did not reduce employee pay by more than 25%; and experienced reductions in business activity as a result of health directives related to COVID-19