Headlines

• Have not received an economic impact payment? Expecting a check in the mail? Check the status of your payment with this IRS web app: "Get My Payment"
• PA unemployment claims reach 1.67 million, state encourages online filing.
• Paycheck Protection Program has been refunded with an additional funding package
  
• Scammers and identity thieves may try to leverage new laws and stimulus packages to get your SSN or bank information.
• Industry-specific information for Agriculture, Construction, Manufacturing, Retail, Transportation, and Service industries.

What To Do If...

You may find yourself in a very confusing and vulnerable situation due to the coronavirus pandemic. Here's what you should know when...

My business has been shut down or stalled.

As you have most likely heard, there are some options available for business owners who had to close their doors or who have been severely affected. There are a few options available to get you through this crisis.  Here is a summary of some of the options:

• The Paycheck Protection Program has limited funds, is available on a “first come, first serve” basis, and is administered by the Small Business Administration (SBA). These loans are eligible for forgiveness. Check out the Overview and Fact Sheet.
  • Funding for the PPP was exhausted two weeks after it was implemented
  • The House is set to vote today on another funding package that will provide an additional $310 Billion for the Paycheck Protection Program.. (Application PDF)
  • Talk to your financial institution to see if they are qualified to do SBA loans.
  • Information you may need to apply includes a 2019 Payroll summary, healthcare costs, and retirement plan funding.

• The Employee Retention Credit is another option designed to help keep employees on payroll. This refundable tax credit is 50% of up to $10,000 in wages paid per employee. Check our this Overview and these FAQs. You qualify if:
  • Your business has been partially or fully shut down by governmental mandate, or
  • Your gross receipts are less than 50% of the same quarter last year.
• The Economic Injury Disaster Loans from the SBA (COVID-19 Phase 1) may still be an option but are not eligible for forgiveness.
  • Go to https://www.sba.gov/funding-programs/disaster-assistance for more details and to apply.

There are a number of banks who are providing loan and mortgage payment relief. Talk to your financial institution immediately about your options for an SBA loan or deferred loan and mortgage payments.

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My business has stayed open, but revenue has dried up and I may have to lay off employees.

We understand the severity of the situation and the uncertainty you may feel in making this difficult decision. Again, there are options to consider. Please note that all small businesses (under 500 employees) have been made eligible to apply for a low-interest loan due to the pandemic. Remember this:

• There are proactive measures to take NOW.
  • Reduce (or eliminate) non-essential overhead expenses. Some of these may include overtime hours, non-essential repairs, advertising, etc.
  • Consider delaying all unnecessary purchases. (Don’t spend money.)
  • Now is the time to ask your banker what your options are regarding loan payments, line of credit, etc.
  • Contact a business advisor if you need help with any financial decisions.
• There are options and resources available if you want to keep employees on payroll:
  • Paycheck Protection Program (see above summary)
  • Employee Retention Credit (see abover summary)
  • You may also like to consider a Shared Work Plan from the PA Shared-Work Program, but your application may take up to 15 days to be reviewed. Go to THIS LINK for more details. 
• If you find it necessary to lay off employees:
  • The first step for PA Unemployment Compensation (UC) is to file a claim. After your claim is filed, the Office of Unemployment Compensation will determine your eligibility in three steps: financial eligibility, benefits eligibility, and maintaining eligibility. For more info on eligibility, CLICK HERE.
  • You can file a PA Unemployment claim in one of four ways:
    • Online
    • Paper Form
    • Phone at 1-888-313-7284
    • Videophone (for individuals who use ASL)
  • Some Unemployment Compensation regulations have been suspended due to the Coronavirus (COVID-19). 
    • Work Search and Work Registration requirements are temporarily suspended for all UC claimants. 
    • The Waiting Week is temporarily suspended for all UC claimants.
    • Business owners will not be penalized with higher UC tax rates when they file a Request for Relief From Charges [Form UC-44FR]
  • Impacted business owners may access COVID-19 Frequently Asked Questions at THIS LINK.
  • For information on unemployment claims outside of Pennsylvania, please visit your state government's website.

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My business is open but has been directly or indirectly impacted by illness and school closings.

• The Families First Coronavirus Response Act (FFCRA or Act) requires certain employers to provide their employees with paid sick leave and expanded family and medical leave for specified reasons related to COVID-19. These provisions will apply from April 1, 2020 through December 31, 2020.
• Each covered employer must post in a conspicuous place on its premises a notice of FFCRA requirements. Check out these links for more information:
  

EMPLOYER REQUIREMENTS ·  EMPLOYEE PAID LEAVE RIGHTS  ·  FREQUENTLY ASKED QUESTIONS

Source: https://www.dol.gov/agencies/whd/pandemic/ffcra-employer-paid-leave

My business has opportunities to shift focus.

You may be uniquely positioned to join the fight for our health and for our economy. Think creatively about ways to serve our communities during this time while still regarding safety and health recommendations from our officials. If you are unable to provide the same product or service as usual, ask yourself how your customers' painpoints have changed and how you can meet these challenges head-on.

What have others been doing with these challenging circumstances?

• Businesses have pivoted to a remote workforce with online meetings and digital resources.
• Restaurants have been offering takeout and delivering prepared meals.
• Theater companies have been making recorded performances available.
• Individuals and businesses have volunteered to support our non-profits and health care workers.
• Schools have been taking classes online and teachers are getting creative with student communication.
• Landlords have been offering discounts and deferred payments and waiving late fees.
• Manufacturing plants have been making masks and ventilators for over-burdened hospitals.

We will all feel the effects of the current economic environment. We know the sudden changes may have many implications for you. As we become aware of additional updates, we will let you know. Feel free to check out our coronavirus webpage for more updates regarding the changes as a result of COVID-19.

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Resources

IRS: Coronavirus Tax Relief

U.S. Chamber of Commerce: How to Get a Coronavirus Emergency Paycheck Protection Loan

U.S. Chamber of Commerce: CORONAVIRUS EMERGENCY LOANS - Small Business Guide and Checklist 

U.S. Treasury: How the Treasury Department is Taking Action

U.S. Department of Labor: CORONAVIRUS RESOURCES

U.S. Department of Labor Occupational Safety and Health Administration: COVID-19

Pennsylvania Department of Health: Coronavirus (COVID-19)

And, as usual, the Gehman team is here to support you in whatever way we can.  Let us know how this crisis has impacted you and subscribe to our newsletter.