Employers face many new challenges each day in the business world. However, navigating this world is more complex than ever before in the middle of a global pandemic.
Managing the economic impact seems to be the largest obstacle. The federal government has tried to minimize this impact, and recently approved an extension of assistance programs for small businesses. It is critical for all business owners to understand the details of these programs, so they know how to protect their businesses.
New bill extends assistance for small businesses
At the end of 2020, federal lawmakers extended the programs created under the Coronavirus Aid, Relief and Economic Security Act (CARES Act) by passing another stimulus bill.
This extension will:
- Reopen the Payroll Protection Program (PPP) for a second loan, if eligible
- Add $284 billion to the available funding
- Extend the eligibility for PPP loans and the use of funds
- Facilitate the application for loan forgiveness for eligible businesses
- Continue the tax credit for retaining employees
Understanding eligibility for these benefits as well as the process is critical. Employers should take the time to comprehend the aspects of this new bill and how it will impact them.
What about employees’ leave?
It is also important to note that the law allowing additional paid leave – the Families First Coronavirus Response Act (FFCRA) – expired on Dec. 31, 2020.
However, this matter is more complicated than it seems. California employers must make sure they understand the nuances of employee leave during this time.
For example:
- The terms of FFCRA expired, but employers can still receive a tax credit if they voluntarily offer leave to their employees
- California’s Supplemental Paid Sick Leave expired as well, but tax credits are also available
It is essential that employers understand the details of the new bill as well as leave requirements under the law. That way, employers can not only protect their workers but also avoid legal complications during this already stressful time.
