Human Resources

The Centers for Disease Control (CDC) has issued guidance for employers that have a suspected or confirmed case of COVID-19 at their workplace. This e-Alert is a summary of the CDC’s information. Details can be found at the CDC’s website. What should I do if an employee comes to work with COVID-19 symptoms? Employees who have symptoms when they arrive at work or become sick during the day should immediately be separated from other employees, customers, and visitors and sent home. Employees who develop symptoms outside of work should notify their supervisor and stay home.Sick employees should follow the CDC recommended steps. Employees should not return to work until they have met the criteria to stop home isolation and have consulted with a healthcare provider. Employers should not require sick employees to provide a COVID-19 test result or healthcare provider’s note to validate their illness, qualify for sick leave, or return to work. Healthcare provider offices and medical facilities may be extremely busy and not able to provide such documentation in a timely manner. What should I do if an employee is suspected or confirmed to have COVID-19? In most cases, you do not need to shut down your workplace. But you should close off any areas that the sick person used for prolonged periods of time. Wait 24 hours (or as long as possible) before cleaning and disinfecting to minimize potential for other employees being exposed to respiratory droplets. Follow the CDC cleaning and disinfection recommendations. In addition to cleaning and disinfecting, you should determine which employees may have been exposed to the virus and need to take additional precautions: If an employee is confirmed to have COVID-19, employers should inform the other employees of their possible exposure to COVID-19 in the workplace but should maintain confidentiality by not revealing the name of the employee who tested positive. Employees who test positive for COVID-19 should not come to work and should isolate at home if they do not need to be hospitalized and follow the CDC recommended steps. Workplaces should follow the CDC’s recommended precautions for people exposed to COVID and tell potentially exposed employees to stay home for 14 days and self-monitor for symptoms. Employees should not return to work until they have met the criteria to stop home isolation and have consulted with a healthcare provider. If employees have been exposed but are not showing symptoms, should I allow them to work? Employees may have been exposed if they have been within 6 feet of a person with COVID-19 for a prolonged period of time. Exposed employees who do not have symptoms should remain at home and practice social distancing for 14 days. All other employees should self-monitor for symptoms and wear cloth face coverings when in public. If they develop symptoms, they should notify their supervisor and stay home. What should I do if I find our several days later, after an employee worked, that they were diagnosed with COVID? If it has been less than 7 days since the sick employee was in the workplace, you should clean and disinfect all areas used by the sick employee following the CDC cleaning and disinfection recommendations. If it has been 7 or more days since the sick employee was in the workplace, additional cleaning and disinfection is not necessary. Continue routinely cleaning and disinfecting all high-touch surfaces in the workplace. Other employees may have been exposed if they were in within 6 feet of the sick employee for a prolonged period of time (longer than 15 minutes): If an employee is confirmed to have COVID-19, you should inform the other employees of their possible exposure to COVID-19 in the workplace but maintain confidentiality by not revealing the name of the employee who tested positive.  Employees who have symptoms should self-isolate and follow the CDC recommended steps. Employees who were potentially exposed but have no symptoms should remain at home or in a comparable setting and practice social distancing for 14 days. Employees not considered exposed should self-monitor for symptoms. If they develop symptoms, they should notify their supervisor and stay home. When should an employee suspected or confirmed with having COVID-19 return to work? Employers do not need to require a sick employee to provide a negative COVID-19 test result or healthcare provider’s note to return to work. Employees with COVID-19 who have stayed home can stop home isolation and return to work when they have met one of the following criteria: Persons with COVID-19 who have symptoms may return to work if: They have gone at least 3 days (72 hours) without a fever and have improvement in respiratory symptoms (cough, shortness of breath); and At least 10 days have passed since their symptoms first appeared. OR They have no fever and They have improvement in respiratory symptoms (cough, shortness of breath), and They have negative results from at least two consecutive COVID tests done at least 24 hours apart. People who test positive for COVID-19 but don’t have symptoms may return to work if: At least 10 days have passed since the date of their first positive COVID-19 test assuming they have not subsequently developed symptoms since then. OR They have negative results from at least two consecutive COVID tests done at least 24 hours apart. FUBA members with questions about COVID-19 can call us at 800-262-4483 or email our experts for assistance. Click here for FUBA’s dedicated Coronavirus Resources page for Florida businesses.

Employers are required to report the amount of qualified sick and family leave wages paid to employees under the Families First Coronavirus Response Act (FFCRA) on Form W-2, according to guidance from the IRS and the U.S. Treasury Department. The guidance was provided in Notice 2020-54, issued by the agencies on July 8, 2020. Reporting FFCRA Compensation on the W-2 Employers will be required to report FFCRA leave compensation in either Box 14 of Form W-2, or in a statement provided with the Form W-2. The reporting requirement provides self-employed individuals who are also employees with the information necessary to claim sick and family leave tax credits for which they are eligible. According to the Notice, these individuals must also report on Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals, included with their income tax returns. The guidance provides employers with optional language to use in the Form W-2 instructions for employees, explaining that the FFCRA leave wages may limit employees’ tax credits for FFCRA leave with respect to any additional self-employment income. Employee Leave Under FFCRA The FFCRA requires covered employers to provide employees with up to 80 hours of paid sick leave and up to 10 weeks of partially compensated leave under the Family and Medical Leave Act for specified reasons relating to COVID-19. Employers may take a dollar-for-dollar reimbursement through tax credits for all qualifying wages paid under the FFCRA. Applicable tax credits also extend to amounts paid or incurred to maintain health insurance coverage.

Even as stay-at-home orders and restrictions are lifted, daily operations won’t be business-as-usual for many across the country. The coronavirus (COVID-19) pandemic is still going on, despite businesses reopening. Moreover, public health officials and experts are warning of a potential second wave of COVID-19 cases. Of course, no one knows if or when a second wave of infection will strike—or whether it will be as bad as or worse than the first wave. As such, businesses across the country should start planning today so they’re properly prepared for a second wave of COVID-19 cases. Review Federal, State and Local Guidance Similar to the first wave of COVID-19 cases, governmental guidance will play a large role in how your organization should respond to a second wave of COVID-19 cases. The COVID-19 pandemic has impacted states and regions in different ways. A second wave of cases may follow the same suit, affecting different regions at different times and in varying capacities. This means that businesses in one region may be able to remain open, while businesses in other regions may need to close or adjust for a second time. As such, it’s critical to understand and continually review all relevant state and local orders to determine if your business needs to take action in the face of a second wave of COVID-19 cases. Review Your Organizational Risks Even if there aren’t federal, state or local recommendations to close your business or make changes to prevent the second spread of COVID-19 cases, that doesn’t mean your organization is safe from the coronavirus. What’s more, some businesses may have greater exposures than others, underscoring the importance of performing a thorough risk assessment to determine how you should respond.   Similar to conducting a risk assessment for planning to reopen following the first wave of COVID-19 cases, your organization should conduct a risk assessment in preparation for a reemergence of COVID-19 cases. While the complexity of risk assessments will differ from business to business, they typically involve the following steps: Identifying the hazards—When it comes to planning for a second wave of the coronavirus, businesses need to think critically about their exposures, particularly if an infected person entered their facilities. When identifying hazards, it’s a good idea to perform a walkthrough of the premises and consider high-risk areas. It’s also important to consider what tasks employees are performing and whether or not they are especially exposed to COVID-19 risks when performing their duties. Deciding who may be harmed by a second wave of cases and how—Once you’ve identified hazards to your business, you need to determine what populations of your workforce are exposed to COVID-19 risks. When performing this evaluation, you will need to make note of high-risk individuals (e.g., staff members who meet with customers or individuals with preexisting medical conditions). Assessing risks—Once you have identified the risks facing your business, you must analyze them to determine their potential consequences. For each risk facing your business, you’ll want to determine: How likely is this particular risk to occur? What are the ramifications should this risk occur? When analyzing your risks, consider potential financial losses, compliance requirements, employee safety, business disruptions, reputational harm and other consequences. Controlling risks—With a sense of what the threats to your business are, you can then consider ways to address them. There are a variety of methods businesses can use to manage their risks, including: Risk avoidance—Risk avoidance is when a business eliminates certain hazards, activities and exposures from their operations altogether. Risk control—Risk control involves preventive action. Risk transfer—Risk transfer is when a business transfers their exposures to a third party. For preparing for a second wave of the coronavirus, control measures could include cleaning protocols, work-from-home orders and mandated personal protective equipment (PPE) usage. Monitoring the results—Risk management is an evolving, continuous process. Once you’ve implemented a risk management solution, you’ll want to monitor its effectiveness and reassess. Remember, the COVID-19 pandemic so far has been rapidly evolving, and guidance can change quickly. Your business should be prepared to take action at short notice. Maintain Workplace Safety Maintaining workplace safety is crucial to preventing the spread of COVID-19 at your organization, and will continue to be crucial in protecting your organization against a second wave of COVID-19 cases. There are a number of OSHA and Centers for Disease Control and Prevention (CDC) workplace controls to consider if your risk assessment determines that COVID-19 poses a threat to your employees or customers. For instance, you should: Implement administrative controls—Typically, administrative controls are changes in work policies or procedures that reduce or minimize an individual’s exposure to a hazard. An example of an administrative control for the coronavirus is establishing alternating days or extra shifts that reduce the total number of employees in a facility at a given time. Utilize PPE—Businesses should focus on training workers on proper PPE best practices. Employees should understand how to properly put on, take off and care for PPE. Training material should be easy to understand and must be available in the appropriate language for all workers. Consider engineering controls—Engineering controls protect workers by removing hazardous conditions or by placing a barrier between the worker and the hazard. For COVID-19, engineering controls can include: Installing high-efficiency air filters Increasing ventilation rates in the work environment Installing physical barriers, such as clear plastic sneeze guards Screen employees before they enter the building— To keep employees safe, consider conducting screening procedures to identify potentially ill employees before they enter the workplace. The Equal Employment Opportunity Commission permits employers to measure employees’ body temperatures before allowing them to enter the worksite. Any employee screening should be implemented on a nondiscriminatory basis, and all information gleaned should be treated as confidential medical information under the Americans with Disabilities Act—specifically, the identity of workers exhibiting a fever or other COVID-19 symptoms should only be shared with members of company management with a true need to know. Be sure to notify employees of this practice prior to implementation in

Under a new federal law effective June 5, 2020, the requirements for PPP loan forgiveness have been relaxed in favor of small businesses. The new rules are: More time to use the loan: Instead of having to use your PPP loan in the 8 weeks after you get it, the new law gives you either 24 weeks or until the end of this year (whichever is earlier) to use your PPP loan.  More flexibility on how you spend your loan: The old PPP rules required you to use at least 75% of your loan on payroll costs (salary/wages, health insurance, retirement, paid leave, and unemployment taxes) and no more than 25% on certain non-payroll costs (rent, utilities, and mortgage interest). The new rules require you to spend only 60% of your loan on payroll costs and allow up to 40% on the approved non-payroll costs. This is a very helpful change for small businesses who were not able to reopen but who were still obligated to pay their rent and utilities.  Longer to pay back your loan: Any portion of your PPP loan that is not forgiven will be converted to a loan. New PPP loans approved after June 5, 2020 will be for 5 years. Existing PPP loans are for 2 years, but you can negotiate with your lender to change it to a 5-year loan.  No penalties for reducing employee count and/or employee wages: Your PPP loan forgiveness can be reduced if you have fewer employees or lower employee salaries after receiving your loan than you did before the pandemic. To read more about PPP loan forgiveness reduction, click here and scroll down to #3) Forgiveness amounts can be reduced two ways. Under the new rules, you now have until December 31, 2020 to restore employees and wages to your pre-pandemic levels and still get loan forgiveness. The new law allows you to get full forgiveness if you can document that you are unable to re-hire employees who were on your payroll as of February 15, 2020 and you can’t hire similarly-qualified individuals to fill their positions by December 31st. Also, if you can document that you can’t go back to your pre-pandemic staffing level because your business is complying with worker or customer social distancing measures, your loan forgiveness will not be penalized. We expect a lot more guidance from the Small Business Administration on this topic in the near future.  Payroll tax deferral: Businesses who receive PPP loan forgiveness are now eligible to defer the employer’s share of employee payroll taxes over the next two years. See FUBA’s coronavirus resources page for an explanation of how this payroll tax deferral works. If you have questions about your PPP loan or forgiveness, you can ask our expert staff and we will assist you.­ Email us at fuba@fuba.org or call us at 800-262-4483. FUBA’s coronavirus resources page for small businesses is constantly updated and can be found here. 

Small business owners would have more latitude in using their Paycheck Protection Program loans if President Donald Trump signs into law a bill given final passage by the Senate on Wednesday. The legislation, which passed the House with one “nay” vote and the Senate by unanimous consent, extends the amount of time borrowers have to use PPP funds from eight weeks to 24. It also extends the deadline to rehire laid-off and furloughed employees and still qualify for loan forgiveness from June 30 to Dec. 31. The bill reduces from 75% to 60% the amount of PPP money that must be spent on payroll expenses for the loan to be forgiven completely. The remainder can be used for rent, utilities and mortgage payments. The bill also gives borrowers five years to repay the loan instead of two years. The congressional action comes after small business owners on Long Island and elsewhere said they need to use the PPP funds when they reopen and have more flexibility on loan forgiveness. Changes to the 75% threshold and two-year term address violations of the intent of the CARES Act, which established the PPP.   Last month, the inspector general of the U.S. Small Business Administration found those requirements, established by SBA and the U.S. Department of Treasury, “could result in an unintended burden to the borrowers.” The adopted legislation provides “desperately-needed flexibility and relief to countless small businesses on Long Island and beyond,” said Senate minority leader Charles Schumer, who successfully sought unanimous consent. “This deal gives small businesses a more realistic timeline to get the help they need while they bring back employees.” An aide said Schumer will push for an immediate bill signing by Trump. More than 290,450 PPP loans totaling $37 billion were made to New York State borrowers as of May 30, according to SBA. The agency hasn’t been able to provide Long Island data since PPP began on April 3. PPP loans are for up to $10 million per applicant with an interest rate of 1%. Newsday has received a $10 million loan. The federally guaranteed loans are made by banks and other private lenders. About $90 billion in guarantees are still available, out of $659 billion authorized by Congress. The first $349 billion in guarantees was exhausted in two weeks but demand slowed as small business owners found the regulations didn’t suit their needs. “There is still plenty of money in the PPP appropriation, and now is the time for any small business owner, who feels that this program could help them, to contact a participating lender,” SBA’s New York regional administrator Steve Bulger said Wednesday. Rep. Thomas Suozzi (D-Glen Cove) urged Trump to sign the bill, saying, “Our local small businesses are desperately awaiting this action.” FIXING THE PPP Congress has passed legislation that changes some regulations for Paycheck Protection Program loans. The changes include: * 24 weeks to use the funds, up from eight weeks * 60% of funds must be used for payroll to have the loan forgiven completely, down from 75% * Dec. 31 deadline to rehire workers and use funds to qualify for loan forgiveness, extended from June 30 * Five years to repay, up from two years

On March 27, 2020, the United States Congress approved a coronavirus relief bill called the CARES Act that created the Paycheck Protection Program (PPP) to provide forgivable loans to small businesses so they could pay their employees during the pandemic.­ PPP loans are intended to provide 8 weeks of cash to cover payroll, rent, utilities, and mortgage interest. If your business receives a loan from the Paycheck Protection Program, you will not have to pay the loan back if certain requirements are met. To get your PPP loan forgiven, you must spend at least 75% of the loan on payroll for employees (salary/wages, health insurance, retirement, paid leave, and unemployment taxes) and no more than 25% of the loan on rent, utilities (including phone and internet bills), and mortgage interest. To determine the amount of loan forgiveness, your bank will look at the 8-week period starting the day you get the loan and add up what you paid in payroll to employees­ (including benefits), rent, utilities, and interest on mortgages during those 8 weeks. That amount is what is eligible for forgiveness. Any amount of your PPP loan that is not forgiven will be converted to a 2-year loan with a 1% interest rate. Because the forgiveness rules are strict, Congress is currently considering the Paycheck Protection Flexibility Act, which would change the forgiveness rules to make it easier for small businesses to get their PPP loans forgiven.­ The bill would allow forgiveness for expenses beyond the 8-week loan period; eliminate the requirement that 75% of the PPP loan be spent on payroll; extend the deadline for employers to rehire employees; allow businesses with PPP loan to defer some payroll taxes; and extend the PPP loan term beyond 2 years. As of the date of this e-alert, this bill has not become law, so these changes are not effective.­­­ Until these changes are approved, businesses looking to get their PPP loan forgiven must follow the current rules from Small Business Administration (SBA) which were released on May 15, 2020. The SBA’s loan forgiveness application and instructions can be found here.­ More details and examples can be found in the SBA’s rules on forgiveness here. While the forgiveness application is complicated, it does provide some important clarifications for businesses: ­ You can start your 8-week period on the first day of the pay period after getting the loan if your payroll schedule is biweekly or more frequently. Because the date you get your PPP loan may not line up with the date you pay payroll to your employees, you can choose to start your 8-week period on the first day of the first payroll cycle after you get the loan instead of starting your 8-week period on the day you get the PPP loan. This option is only available to businesses whose payroll schedule is biweekly (every 2 weeks for 26 paychecks per year) or more frequently. If your payroll cycle is semi-monthly (i.e., on the 15th and last day of each month for 24 paychecks per year), you are not eligible for this alternative 8-week period. Example:­ You get your PPP loan on June 1st, making your 8-week period June 1 through July 26. The first day of your next payroll cycle after getting your loan is June 7th. You can choose to start your 8-week period on June 7 rather than June 1 and have it end 8 weeks later on August 1st. Any payroll paid or incurred during this new 8-week period is eligible for forgiveness (see below for an explanation of incurred payroll).­ Expenses incurred but not paid until after the 8-week period are eligible for forgiveness. Payroll expenses:­ You can apply for forgiveness not just on payroll paid during the 8-week period, but also any payroll incurred during your 8-week period.­ In general, payroll costs are incurred on the day the employee’s pay is earned (i.e., the day the employee worked). So, any payroll costs paid or incurred during your 8-week period are eligible for forgiveness. This is true whether you are starting your 8-week period on the day you get your PPP loan or you are using the alternative 8-week period described above. For example, if your business incurs payroll costs towards the end of your 8-week period but it’s not time to cut paychecks before the 8 weeks are up, the payroll incurred by your employees at the end of your 8-week period is eligible for forgiveness if you pay the employees on the next regularly-scheduled payroll date (even though payroll was paid after the 8-week period). Other expenses (rent, utilities including phone and internet, and mortgage interest):­ Like payroll, if your business incurs these expenses during the 8-week period but does not pay them until after the 8-week period, they are eligible for forgiveness. For example, if your 8-week period is from June 1 to July 26, and you pay your May and June utility bill using the PPP loan during the 8 weeks, you can also use your PPP loan to pay your July utility bill because it was incurred during the 8-week period.­ Forgiveness amounts can be reduced two ways. Reduction in the number of employees:­ If you reduced the number of FTE employees (full-time equivalents) during the 8-week loan period as compared to a prior period before you got the loan, your loan forgiveness can be reduced. For this purpose, an FTE is an employee working 40 hours or more per week. For employees working less than 40 hours a week, you have a choice:­ you can either count all of them as .5 FTE regardless of how many hours they work a week or you can use the average number of hours they work a week. If an employee was paid for 30 hours of work per week, that employee is an FTE of .75.­ An employee who only works 10 hours per week would be an FTE of .25. First you choose a comparison period:­ You can