In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000.
The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.
To apply for a COVID-19 Economic Injury Disaster Loan,click here.
The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses.
Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.
Under this program:
Eligible recipients may qualify for a loan up to $10 million determined by 8 weeks of prior average payroll plus an additional 25% of that amount.
Loan payments will be deferred for six months.
If you maintain your workforce, SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses following loan origination.
On March 30, Governor Ralph Northam issued a Stay at Home Order (Executive Order 55) requiring all Virginians to stay home, with a few exceptions. Individuals are allowed to travel for essential services only, which includes going to the grocery store, picking up medication, caring for sick family members, and picking up items from restaurants and other essential retailers. The order goes into effect immediately and remains in place until June 10, 2020. Additionally, all higher education institutions are required to stop all in-person classes and instruction, and all Virginia beaches are closed except for fishing and exercise.
“We are in a public health crisis, and we need everyone to take this seriously and act responsibly,” said Governor Northam. “Our message to Virginians is clear: stay home. We know this virus spreads primarily through human-to-human contact, and that’s why it’s so important that people follow this order and practice social distancing. I’m deeply grateful to everyone for their cooperation during this unprecedented and difficult time.”
EO 55 serves to reinforce the guidelines previously outlined in EO 53, which places restrictions on the following three categories of businesses:
Recreational and entertainment businesses, like bowling alleys and movie theaters, must close;
Restaurants and other businesses providing food and beverage services, like breweries and wineries, may only offer takeout and delivery services, as long as they are able to comply with social distancing and hygiene requirements; and
Non-essential brick and mortar stores may stay open as long as they restrict their stores to 10 patrons or less, not including staff, and comply with social distancing recommendations.
Professional businesses not listed above must utilize telework as much as possible. Where telework is not feasible, such businesses must adhere to social distancing recommendations, enhanced sanitizing procedures, and apply relevant workplace guidance from state and federal authorities, including CDC, OSHA, and the Virginia Department of Labor and Industry.
All businesses deemed essential, and guidelines for operating during the pandemic can be found in Executive Order 55 and Executive Order 53. The Virginia Chamber of Commerce will continue to update the COVID-19 Resource Center as more information and resources become available to the business community.
The paid leave provisions of the recently enacted Families First Coronavirus Response Act will go into effect April 1, 2020, according to Q&As released by the U.S. Department of Labor (DOL). Specifically, the guidance states these provisions apply to leave taken between April 1, 2020, and Dec. 31, 2020.
The Act includes two types of paid employee leave for reasons related to the coronavirus (COVID-19) pandemic:
Expanded federal Family and Medical Leave Act (FMLA) leave to provide workers with partially paid leave for child care purposes.
Up to 80 hours of paid sick leave for specific reasons caused by COVID-19, including the employee’s own COVID-19 illness.
Effective Date
The language of the Act states that the leave provisions take effect “not later than 15 days after the date of enactment.” The Act was passed on March 18, 2020. Sources had interpreted this language to mean the Act would take effect on April 2, 2020. The new guidance from the DOL clarifies that the leave requirements take effect April 1.
THIS IS A SUMMARY OF “BEST PRACTICE” OPINIONS WE HAVE GATHERED TO DATE.
Due to the uncertainty regarding potential congressional action dictating whether and how furloughed workers will be able to access federal paid sick, family and medical leave resources, employers are strongly urged to place employees on temporary leave and advise them that they expect to have work available within 120 days, as opposed to terminating them. There is no additional cost to employers; employees remain eligible for UI benefits through the state; and employees may remain eligible for potential federal assistance.
Steps for employers placing employees on temporary unpaid leave:
Rather than terminating the employee, specify a temporary / indefinite leave with return to work expected within 120 days.
Do not create a contractual obligation to bring the employee back to work – let the employee know that the situation is fluid and subject to change.
Notify Outstaffing immediately of any employees who you place on leave, or who are unable to work because they are sick, quarantined, immunocompromised, or have an unanticipated family care responsibility. You should inform them that they are eligible for unemployment insurance benefits.
Ensure employees are aware that when they file for unemployment they should state that this is a temporary layoff. As Outstaffing is your PEO, they must complete the application specifying that their employer is Outstaffing, Inc., P.O. Box 1099, Chatham, VA 24531 (EIN#: 54-1858052).
Get each employee’s up-to-date contact information (mailing address, personal email and home/cell telephone numbers). Please send immediately to Outstaffing.
Appoint a single or limited number of individuals at your business who will field questions, and communicate that information to employees. Keep a tally of all questions and answers. Suggest they call Outstaffing if they have any unemployment or benefits continuation questions.
Please keep your employees, and Outstaffing, informed of all decisions you make concerning closing/opening business operations or payroll and benefits changes that may affect them and their families.
Outstaffing will be available to you as we navigate our way through these difficult times together. Things will undoubtedly change, but we have been supporting our clients for over 25 years, and we will stay strong with you during these trying times. Please call if you have any questions.
Is Guardian making any special accommodations for employees who may lose coverage as a result of reduction in hours, layoff, or furlough?
As the impact of coronavirus disease (COVID-19) continues to unfold, large numbers of employees’ hours are being reduced. In response, Guardian is making changes to eligibility requirements in order to provide coverage on most group products. Effective 3/1/2020, Guardian will continue to consider an employee who was enrolled as of that date to be eligible for benefits until 4/30/2020 if premium continues to be paid when:
The full-time employee’s hours are reduced and fall below the minimum hourly work requirement to be benefit eligible.
OR
The employee is furloughed or laid off.
We will communicate any changes regarding this temporary accommodation prior to 4/30/2020, including whether we will be extending the accommodation timeframe, or if we will return to the original contract provisions in your policy regarding eligibility requirements.
SOURCE: GUARDIAN Email “Guardian to cover your employees with reduced work hours”
Anthem opened a Special Enrollment Period (SEP) from now until April 3, 2020 to make benefits available to employees in Fully Insured Small and Large Groups who previously waived participation in employer-sponsored plans. Anthem Balanced Funding plans are included in the SEP. State eligibility guidelines will apply.
This SEP is in response to COVID-19. It’s another way Anthem is helping people get the care they need.
Who’s eligible? Employees who were eligible for benefits during your Open Enrollment are eligible for this SEP if they had previously waived coverage.
How it works You’ll follow the standard process of sending updated enrollments to Anthem, just as you would for any qualifying event or enrollment period, through your elected format of 834s, the EmployerAccess portal, or other approved methods.
Employers are entitled to a refundable tax credit equal to 100 percent of qualified paid sick leave wages paid by an employer for each calendar quarter, applied against the employer’s portion of Social Security and Medicare taxes. This credit only applies to Emergency Paid Sick Leave wages. The credit amount varies depending on whether the sick leave is taken for the employee’s own illness, or to care for a family member:
For the employee’s own illness, the amount of qualified sick leave wages taken into account for each employee is capped at $511 per day and $5,110 annually.
For amounts paid to employees caring for a family member, the amount of qualified sick leave wages taken into account for each employee is capped at $200 per day, and $2,000 annually.
For both the emergency paid sick and paid family leave, the credit shall be increased by the employer’s share of medical premiums associated with leave payments
Employers with fewer than 500 employees must provide employees who’ve been with the organization for 30 days or more the right take up to 12 weeks of job-protected leave under the Family and Medical Leave Act. The first two weeks may be unpaid, or paid with Emergency Paid Sick Leave as detailed above, and the remaining 10 weeks are paid through Emergency FMLA, at a rate of two-thirds the employee’s regular rate of pay. This time may only be used if an employee can’t work, or telework, because they need to care for a child whose school or place of care is closed due to COVID-19. This benefit is limited to $200 per day, which a cap of $10,000 dollars total.
This section requires employers with fewer than 500 employees to provide employees two weeks of paid sick leave, paid at the employee’s regular rate for their own sickness or care; or paid at two-thirds the employee’s regular rate to care for a family member or to care for a child whose school or place of care has closed due to the coronavirus. All employees, regardless of their tenure with the company, are entitled to this time.
Full-time employees are entitled to 2 weeks (80 hours) and part-time employees are entitled to the typical number of hours that they work in a typical two-week period. If the employee is using this time for their own illness, the benefit is limited to $511 per day, and $5,110 annually. If the employee is using this time to care for a family member, the benefit is limited to $200 per day, and $2,000 annually.
