With Covid-19 changing how businesses can operate or if they may forced to close during the state mandated non-essential business shutdown order, there is relief.
Paycheck Protection Program (or PPP) aimed at protecting jobs for employers with fewer than 500 employees as well as 501 (c) (3) classified tax-exempt organizations. For guidelines and eligibility visit www.uschamber.com/sbloans.
Mid and large-sized companies employing more than 500 people may be eligible for loans, loan guarantees and Federal Reserve credit support to lenders.
All employers who are fully or partially shut down, or who have or expect a loss of 50 percent in receipts to their business in a previous quarter are eligible for refundable tax credits.
All employers may also be eligible to delay payment of employer payroll taxes, like Social Security.
Gig/freelance and contract workers are now eligible for unemployment compensation under an expansion of those benefits. Filers must claim in the state in which they live and work. Updates to how to file should be available in coming days on the Pennsylvania website at uc.pa.gov. Unemployment benefits claims will not be filed through the federal government or its websites.
Provisions under the CARES Act mean tax changes, employee retention credits, loans, loan guarantees, Paycheck Protection Program (PPP), Small Business Economic Injury Disaster Loans (EIDL) and paid sick and Family Medical Leave Act expansions aim to benefit employers and workers directly impacted by Covid-19.
From employers forced to close their doors to furloughed and laid off workers filing unemployment claims in record numbers no sector, business or individual is untouched by the Covid-19 pandemic.
A record setting $2.2 trillion federal government stimulus package known as the Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law March 27, expands unemployment to those who were not eligible before.
“For employers struggling right now through layoffs or how to pay employees and whether they will stay open, it is important to understand the provisions in the stimulus package,” said Andrew Levy a member and attorney at McNees Wallace & Nurick LLC in Harrisburg. Levy provides labor and employment law legal counsel.
From the CARES Act more than $350 billion has been made available to small businesses to keep employees working. It makes grants, loans and employer incentives available on a broad scale, with simplified access points to provide liquid revenue as soon as possible.
The CARES Act aims to avoid a prolonged recession and downturn due to the massive shutdown of businesses resulting from mitigation efforts and stay-at- home orders due to the Covid-19.
“This is the largest package passed in U.S. history,” said Kevin Courtois, manager of congressional and public affairs at the U.S. Chamber’s Great Lakes Regional Office.
Which package or plan is right for your business depends upon a company’s workforce numbers and whether or not the pandemic has negatively impacted its business workforce or revenue.
There are different rules for firms with more than 500 employees, type of business entity- from sole proprietor to, S-Corp, LLC or incorporation as well as whether the business can operate under Gov. Tom Wolf’s shutdown order.
Provisions and relief offered through the CARES Act could mean the sink-or-swim difference for many small business owners. “A lot of this is brand new and pending regulatory writing,” Courtois said.
He noted more than 3 million unemployment claims had been filed nationwide, and that many more were expected in the coming days and weeks.
Weekly webinar updates from the PA Chamber of Business and Industry in Harrisburg bring industry experts - from human resources pros to attorneys providing employment law counsel to chamber members.
The updates, available free of charge to UBCC members, aim to engage and help businesses better understand and navigate these important topics impacting their businesses.
While the new law is complicated, information is available regarding programs, tax credits, relief, business loans and grants on the www.sba.gov website. Once there, visitors will find applications for loans, grants and funding programs.
UBCC is committed to providing support to our members and future members by sharing resources and establishing new initiatives with the Upper Bucks community. Each week we will share articles and information to assist our businesses navigating these unpredictable times. Now more than ever, UBCC is here to be your voice, represent our businesses, sustain business and be a part of the robust plan for recovery.