CARES Act
What are the three aspects that employers might be able to take advantage of?
1. Paycheck Protection Program Loan
2. Employee Retention Credit
3. Payroll tax holiday/deferral
What does PPP stand for?
Paycheck Protection Program
What are the three components of the FFCRA?
1) Emergency FLMA
2) Emergency paid sick leave
3) Tax credit
What EIN/address should be used on an EE's unemployment claim in New York?
Justworks' EIN/address
If a terminated employee goes on COBRA and then gets re-hired, how can they get their deductible transferred?
Nothing is needed. This will happen automatically.
What does CARES stand for?
Coronavirus Aid, Relief, and Economic Security
Where can customers apply for a PPP loan?
Any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating
How many days does an employee need to work for a company in order to be eligible for leave under the FFCRA?
30 days, can be non-consecutive
Can Justworks customers participate in work share programs on the state level?
The PEO model creates barriers to the filing of a Shared Work Plan in PEO-reporting states. Justworks does not currently have plans to facilitate the filing of Shared Work Plans on behalf of our customers in PEO-reporting states. In client-reporting states, our customers are encouraged to explore how this may be available to them with legal counsel.
When is the special open enrollment period for Aetna and what is the effective date?
April 10 - April 15 plan selection with a May 1 plan effective date.
What is the Employee Retention Credit?
It's a fully refundable 50% tax credit applicable to the employer’s share of Social Security taxes on qualified wages up to $10,000 per employee (maximum credit of $5,000 per employee).
What is the maximum loan amount under the PPP?
Maximum loan amount is lesser of (a) 250% of average monthly “payroll costs” or (b) $10 million
How is leave pay calculated for employees who work a part-time or irregular schedule?
These EEs are entitled to be paid based on the average number of hours the employee worked for the six months prior to taking paid sick leave.
Is there any flexibility around I-9s since so many companies are working remotely?
I-9s are still required to be completed within the normal timeframe (EE must complete their portion on their first day of work and ER must complete their portion within 3 business days.) However, U.S. Department of Homeland Security (DHS) announced that it will defer the requirements for employers to review Form I-9 documents in-person with new employees until May 19 or within three (3) business days after the termination of the national emergency, whichever comes first.
If a company decides to change the insurance contributions due to COVID-19, will employees get a new open enrollment?
If the company lowers contributions, employees can reach out to request an open enrollment. If the company raises contributions, employees can't make changes.
What is the Payroll tax holiday?
It gives employers the option to defer payment of the employer share of Social Security taxes for the period beginning on the date of the enactment of the Act, which is March 27, 2020, and ending before January 1, 2021.
What are 3 examples of costs that are not included in the calculation of "payroll costs"?
Payments to employees outside the U.S. (not possible on Justworks, but we have been asked)
Sick and family leave for which an existing credit is allowed under the Families First Coronavirus Response Act (FFCRA)
Justworks Admin fees
Workers' Compensation insurance
Contractor and vendor payments
Owner’s draws
What is the cap on paid sick leave wages?
Paid sick leave wages are limited to $511 per day up to $5,110 total per employee for their own use and to $200 per day up to $2,000 total to care for others and any other substantially similar condition.
Do final paycheck lays still apply in CA?
Yes
Can an employee drop coverage due to wage reduction?
No, they can't drop coverage. However, this can be a QLE to switch plans.
When are payroll tax holiday taxes due?
50% by December 31, 2021, and the remaining due by December 31, 2022.
For purposes of calculating the eligible amount of the loan, what is included in "payroll costs"?
Salaries, wages and commissions, up to $100,000 (gross)
Severance (outside of the $100K cap)
Payment for vacation, parental, family or sick leave
Group health care benefits
Employer-paid retirement benefits
State or local taxes assessed on employee compensation
What are the six reasons that an employee would be eligible for emergency paid sick leave?
Can an employee change their DCFSA?
Yes, on a case-by-case basis. Please submit a BOH ticket.
If an employee is rehired, are we able to waive the waiting period?
Yes, as long as it's within 90 days. This would require a BOH ticket.