Author name: dshipps

Many employers facing economic challenges because of COVID-19 have considered several possibilities for reducing their contributions to employees’ 401(k) plans. Whether freezing safe harbor matching or nonelective contributions or deciding against making discretionary matching and/or profit-sharing contributions, the goal has been the same: reduce their employee benefits costs. What many employers have not focused on

On May 9, 2020, the U.S. Department of Labor published a program letter which answered a series of questions raised by states regarding the Federal Pandemci Unemployment Compensation (FPUC) program. The FPUC program, authorized by Section 2104 of the CARES Act, provides an additional $600 weekly payment to certain eligible individuals who are receiving other

Conducting a layoff is never easy—and conducting a layoff virtually adds new challenges for employers. While difficult for both the employer and employees effected, employers can improve this process by utilizing best practices. Effective remote layoffs can ease this difficult time for laid-off employees, while avoiding risk for the employer. What Are Layoffs?Layoffs are mass

The Small Business Administration (SBA) recently issued new guidance regarding the Payment Protection Program (PPP), established to offset the economic effects of the coronavirus pandemic. Small businesses can request loans from the PPP to help cover payroll costs. This new guidance from the SBA concerns employees who refuse to return to work after a business

Many small businesses must rely on payroll-protection loans to keep workers on board during the coronavirus pandemic-and they need to carefully plan and track their spending if they intend to apply for loan forgiveness. Under the $2.2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act, Congress allocated $349 billion to the Paycheck Protection Program

Businesses that received Paycheck Protection Program (PPP) loans can exclude laid-off employees from loan forgiveness reduction calculations if the employees turn downa written offer to be rehired, according to new guidance from the U.S. Small Business Administration (SBA), which warned that employees who reject offers of reemploymentmay find themselves ineligible to continue receiving unemployment benefits.

A dependent care assistance program (DCAP) allows employees to pay for qualifying dependent care expenses, such as day care expenses, on a tax-free basis, up to certain limits. With many schools and day care facilities closing due to the COVID-19 outbreak, employees may want to change the amount of their DCAP contributions. Also, employees may