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HR Update: 04.27.2020

By April 27, 2020 No Comments

MBA Webinar- Tomorrow
 
MBA is hosting a free webinar tomorrow called “Helping Your Employees Through the COVID-19 Crisis.” MBA’s CEO Sean McConnell will sit down with one of MBA’s HR Consultants to discuss the Paycheck Protection Program, FFCRA leaves, and other COVID-19 matters. If you have not registered yet, you can do so here.
 
Paycheck Protection Program: New Funding and New FAQ
 
The Small Business Administration (SBA) has begun accepting new applications for PPP loans. It is widely projected that the funds will run out again quickly. Employers who still are considering applying should act now.
 
The Treasury posted a new FAQ today on the PPP. The FAQ provides additional information regarding employee count for loan application purposes, but does not define “fulltime equivalent employees”, which is an important aspect to the loan forgiveness. Here is the new FAQ:
 
Question: To determine borrower eligibility under the 500-employee or other applicable threshold established by the CARES Act, must a borrower count all employees or only full-time equivalent employees?
 
Answer: For purposes of loan eligibility, the CARES Act defines the term employee to include “individuals employed on a full-time, part-time, or other basis.” A borrower
must therefore calculate the total number of employees, including part-time employees, when determining their employee headcount for purposes of the eligibility threshold. For example, if a borrower has 200 full-time employees and 50 part-time employees each working 10 hours per week, the borrower has a total of 250 employees.
 
By contrast, for purposes of loan forgiveness, the CARES Act uses the standard of “fulltime equivalent employees” to determine the extent to which the loan forgiveness amount will be reduced in the event of workforce reductions.
 
Until the SBA defines “fulltime equivalent employees,” it remains to be seen what standard the SBA will apply.

Additional Resources 

The coronavirus has created many issues for employers to navigate. You can find MBA’s updates on these issues by going here. MBA will continue to update you as the coronavirus pandemic continues to impact employers. 

 

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