Payroll Tax Holiday Starts Today: Here’s What it Means for Employers

Employco USA

Human resources expert comments on President Trump’s newly implemented tax break 

Tax DeferralStarting 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.

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WJR Business Beat with Jeff Sloan: Employco USA Employer Outlook Survey

Employco USA

Rob Wilson was recently a guest on the WJR Business Beat, a StartupNation Radio show. Click here to listen to his segment: “WJR Business Beat with Jeff Sloan: Employco USA Employer Outlook Survey (Episode 109).”

“On today’s WJR Business Beat segment, Jeff shares results from a new survey conducted by Employco USA, a nationwide employment solutions firm serving businesses of all sizes, which shows that employer expectations for the future are bleak.”

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.

New Survey: More Layoffs Coming Soon as Mental Health in the Workplace Plummets

Employco USA

Employment expert discusses new findings which show a bleak economic future and increasing despair among employees

COVID-19 SurveyMental 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.”

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Injured While Teleworking: Are Employers Liable?

Employco USA

Human resources expert weighs in on employers’ OSHA responsibilities for WFH employees 

TeleworkingWith coronavirus cases spiking across the country, many employers have slowed down or stopped their plans to have employees return to the office. As millions of Americans are now working from home, it’s important for employers to consider their OSHA responsibilities for telecommuting workers.

“Telecommuting injuries are still a bit of a gray area, but you may be held responsible for injuries your employees incur at home if they are performing company duties at the time of the injury, or if they can otherwise prove that their work led to their injury,” says Rob Wilson, President of Employco USA, an employment solutions firm with locations across the country.

Wilson says that OSHA used to take a firmer stance on work-at-home accidents and injuries, but in recent years they have revised their policies to say that an employer is not liable for the condition of an employee’s home office. However, Wilson notes that there have been cases where employers have been responsible for injuries that occurred while an employee was engaged in company business at home.

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How Not to Layoff Employees During a Pandemic

Employco USA

Chevron criticized for press release touting improved diversity post-layoffs

COVID-19The COVID-19 pandemic has led to massive layoffs across the country. But some people are questioning whether or not these layoffs are being performed in an equitable and legal fashion.

For example, oil magnate Chevron just made headlines due to their press release which said that their mass layoffs will lead to more diversity, as white males lost positions, giving women and minorities the opportunity to claim those leadership roles.

The press release has been criticized and sparked a larger conversation about how employers should handle the layoff process.

“Layoffs and furloughs are really unavoidable right now,” says Rob Wilson, President of Employco USA and employment trends expert. “Especially for those in the travel, hospitality, and event management fields. But that doesn’t mean employers don’t have to be very, very careful when it comes to how they put these layoffs into action.”

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Can Businesses Get More PPP? Congress to Negotiate ‘Heroes Act’ This Week

Employco USA

Employment expert discusses what small businesses can do when the funds run out 

COVID-19Congress 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.

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Breaking: Illinois Gov. Pritzker Releases New Reopening Criteria

Employco USA

Employment expert shares what employers need to know

Illinois ReopeningWith 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.”

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Don’t Celebrate Yet: Here is Why the Latest Jobs Report is Misleading

Employco USA

Employment expert says latest numbers are a false positive

Jobs ReportLast Thursday the Labor of Department released new figures showing that the United States gained 4.8 million new jobs in June. In addition, the unemployment rate hovered at 11.1%, lower than the predicted 12.4% rate. President Trump heralded the numbers as proof that the economy is “roaring back” after months of economic destruction caused by the COVID-19 pandemic.

“The latest job report seems like a major cause for celebration,” says Rob Wilson, President of Employco USA, a national employment solutions firm with locations across the county. “However, those of us within the employment industry are not celebrating just yet.”

Wilson, an employment expert who has helped hundreds of clients navigate the impact of coronavirus on the workplace, says “These new hire numbers are a false positive. At Employco, over 200 of our clients received PPP. Many then slowly rehired formerly laid-off employees in May and June.”

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