INFINITI HR SVP Daniel Mormino Recently Featured on Franchising.com
INFINITI HR SVP Daniel Mormino was recently featured on Franchising.com on navigating PPP loan forgiveness and how to manage layoffs during these trying times. Check it out here or see the transcript below.
Navigating PPP Loan Forgiveness & Managing Employee Layoffs During Covid-19
1) PPP loan forgiveness
If you’ve received a PPP loan and are using the funds to continue business operations, you’ll want your loan to be forgiven to the greatest extent possible. The key to forgiveness is spending money on forgivable expenses during the 8-week period following receipt of the loan. When applying to your lender for forgiveness, you’ll need to be prepared to provide documentation of how the funds were spent, including:
- Number of employees on the payroll
- Employee pay rates
- Payroll tax filings
- Payroll costs paid in the eight weeks following disbursement of the loan
- Mortgage interest payments in the eight weeks following disbursement of the loan
- Rent or lease payments in the eight weeks following disbursement of the loan
- Utility payments in the eight weeks following disbursement of the loan
- Any advance received under the CARES Act’s Economic Injury Disaster Loan (EIDL) Emergency Advance program
Loan forgiveness will be reduced:
- If the total salary or wages are reduced in excess of 25% compared with the most recent full quarter preceding the loan date; and/or
- By dividing a) the monthly average number of full-time equivalent (FTE) employees during the 8-week covered period, by b) the average number of FTE employees for either the period beginning February 15, 2019, through June 30, 2019; or the period beginning January 1, 2020 and ending on February 29, 2020.Exception for rehires: If from February 15, 2020 through April 26, 2020, there is a reduction in FTE or salary, and by no later than June 30, 2020, the company has eliminated the reduction of staff (i.e., rehired FTEs), then the loan forgiveness will not be reduced.
- If a business receives an emergency advance from the SBA’s EIDL program, the PPP loan forgiveness amount is reduced by this grant amount.
2) Adapting to working remotely
If you are able to have your organization work remotely, here are some useful Remote Work Tips for Managers and Employees.
3) Ongoing operations guidance
If you are an essential business and continuing operations, here are some additional resources on how you can keep your employees and customers safe:
4) Legal considerations for layoffs and furloughs
Finally, from a legal perspective, if you have to reduce pay, hours, or even close your business, what regulations may apply?
Daniel Mormino is Senior Vice President at Infiniti HR, a leading PEO that provides payroll, human resource consulting, and risk management services to businesses nationwide. Contact him at daniel.mormino@infinitihr.com or 623-455-6234.