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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COVID-19 in the Workplace: What Employers Need to Know about PPPFA

Employco USA

Employment expert Rob Wilson shares top tips for leveraging Paycheck Protection Program

COVID-19As the coronavirus pandemic continues to wreak havoc on the national economy, the Paycheck Protection Program Flexibility Act (PPPFA) provides employers with updated options for managing their loans. However, it’s important to know the best way to leverage these options and protect your company during this time of upheaval.

“Under changes to the PPPFA signed on June 5, employers will now be eligible for loan forgiveness equal to the amount the borrower spent on rent, utilities, and mortgages during the 8-week or 24-week covered period or alternative covered period,” says Rob Wilson, President of Employco USA and human resources expert. “Up to 40% of payroll costs can also be covered under these loan terms.”

What is considered a covered payroll cost under the guidelines of the PPPFA?

“Payroll costs can include salary, wages, commissions, or similar compensation, sick leave or medical leave, group insurance, retirement benefits, and cash tips among other possibilities,” says Wilson. “But there are a few exceptions like compensation of an employee whose residence is out the United States.”

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WEBINAR: PPP Update Following the Flexibility Act and Revised Forgiveness Applications

Employco USA

Webinar 06/26/2020

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!

FREE REGISTRATION
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):

REGISTER HERE

You can also use our registration form to submit questions you’d like to see answered/covered during the webinar.

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Podcast: Reopening the Workplace

Employco USA

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.

Podcast: Reopening the Workplace

Contact us with any questions you may have, we’re here to help: hr@employco.com

SBA and Treasury Release New PPP Documents

Employco USA

Employco USA, Inc.

BULLETIN
June 18, 2020 (UPDATE)

COVID-19

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

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BREAKING: Supreme Court Paves Way for LGBT+ Rights in the Workplace

Employco USA

Employment trends expert discusses crucial ruling & what employers need to know

PrideJust in time for Pride Month, the Supreme Court has made the landmark decision to extend new protections to LGBTQIA workers. Today, the Supreme Court made changes to federal civil rights law to include additional protections to gay, lesbian and transgender workers, providing pushback to previous attempts that sought to limit the scope of Title VII of the Civil Rights Act.

“The Supreme Court ruling is being celebrated as an important step in creating a more supportive and safer workplace for millions of LGBT Americans,” says Rob Wilson, employment expert and President of Employco USA, an employment solutions firm with locations across the country.

Wilson says the new ruling is important as previous research has shown many employers have both implicit and explicit bias against transgender workers.

“A recent survey led by the DC Office of Human Rights found that 48 percent of employers showed bias against hiring a transgender individual, even if the applicant was more highly qualified than others. And, nearly 90% of transgender individuals report workplace harassment, says Wilson. “And other research has shown that employers and coworkers can be hostile towards gay or lesbian workers.”

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Don’t Reopen Until You Read This! Guidelines for Getting Back to Work

Employco USA

Employment expert shares crucial advice on reopening and what employers must do to protect themselves, their staff, and their clients

ReopeningIf your reopening is consistent with applicable state and local orders, you might assume that you can flip your ‘closed’ sign around and start embracing our new normal.

However, employment expert Rob Wilson says that employers need to consider more than just state/local guidelines before reopening.

“From putting recommended health and safety actions in place to implementing ongoing monitoring, getting back to work is going to look very different than before, and it’s going to require many workplace modifications,” says Wilson, who has helped guide numerous clients in their reopening procedures.

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Paycheck Protection Program (PPP) Flexibility Act Signed Into Law

Employco USA

Employco USA, Inc.

BULLETIN
June 05, 2020 (UPDATE)

COVID-19

Earlier today, President Donald Trump signed into law the Paycheck Protection Program (PPP) Flexibility Act of 2020, which provides borrowers with greater flexibility in spending PPP funds without compromising forgiveness eligibility.

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

  • Covered period extension – Extends the covered period during which borrowers must spend the PPP funds to be eligible for forgiveness from 8 weeks to 24 weeks.
  • Loan repayment terms – Extends the minimum loan term for unforgiven PPP loans from 2 years to 5 years.
  • Payroll costs vs. nonpayroll costs – Reduces the forgiveness 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%.
  • Payroll tax deferment – Permits borrowers to defer payroll taxes without being penalized while still remaining eligible for loan forgiveness.

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Hacks for Maximizing PPP Forgiveness: How to COVID-Proof Your Business

Employco USA

Employment trends expert Rob Wilson shares exclusive advice on PPP and what employers must know

COVID-19Last week the House passed the Paycheck Protection Program Flexibility Act by 417-1, with the aim of easing strain on small business owners who are being crushed by the coronavirus pandemic and work stoppage.

“The House made important modifications to PPP which really lightened the burden on small businesses,” says Rob Wilson, President of Employco USA and employment trends expert. “They reduced the percentage of the loan which must be spent on payroll down to 60%, which ensures that employers can spend the funds on other necessary business expenses.”

Still, Wilson knows that this won’t be enough for many businesses.

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