COVID-19 – Small Business Resources

Below are links to resources to help guide decisions regarding employment and compliance during COVID-19. We encourage you to speak with the following to review your particular circumstances:
  • attorney
  • health insurance provider
  • lending institutions

The below is intended for informational purposes only, and shall not be construed as legal advice or the legal opinion of Jerry L. Broekhuis CPA, LLC.

Unemployment Insurance
**IMPORTANT** Prior to laying off employees, contact your health insurance provider to understand the provisions of your policy and the impact temporary layoffs will have on covered employees. 

Apply for Unemployment Insurance
1) Online (Preferred.The best time to apply is during non-peak hours 8:00 PM – 8:00 AM)
2) Call 1-866-500-0017
Employees are not eligible for unemployment benefits if they are currently receiving vacation or sick pay at their normal rate of pay. If you provided a severance/bonus as part of the layoff, these also may disqualify the employee. It is encouraged to classify layoffs as a temporary leave and not a termination. Employers unemployment insurance accounts will not be charged for layoffs pertaining to COVID-19 per Executive Order 2020-24.
NOTE: Obtain up to date contact information
Work Share
Program that allows workers to have reduced hours (essential businesses) and also receive partial unemployment benefits. Hours must be reduced between 15% and 45%. All employees in a unit (two or more employees) or specified department must participate.
Questions? Call 1-844-967-5747
Information on Work Share
Fact Sheet 

Michigan Unemployment Insurance Tax — currently, still due April 25th

If you cannot file, you may request a waiver through your MiWAM account. Or, you may be eligible for Apportionment (25 employees or less). Apportionment allows you to spread your 1st Quarter payment over all 4 quarters.

Families First Corona Virus Response Act

Applies to businesses with fewer than 500 employees. There is an exemption for employers with less than 50 employees that can prove compliance to the FFCRA would jeopardize the viability of the business. NOTE: This is not an automatic exemption. The burden of proof is on you as the employer. You will need to document and
Applies to leave taken between April 1, 2020 and December 31, 2020. Any layoff prior to April 1 due to lack of work or government ordered closure is not covered by FFRCA. Instead, encourage laid off employees to file for unemployment insurance.
 Generally, the Act provides that employees of covered employers are eligible for:
  • Two weeks (up to 80 hours) of paid sick leave at the employee’s regular rate of pay where the employee is unable to work because the employee is quarantined (pursuant to Federal, State, or local government order or advice of a health care provider), and/or experiencing COVID-19 symptoms and seeking a medical diagnosis; or
  • Two weeks (up to 80 hours) of paid sick leave at two-thirds the employee’s regular rate of pay because the employee is unable to work because of a bona fide need to care for an individual subject to quarantine (pursuant to Federal, State, or local government order or advice of a health care provider), or to care for a child (under 18 years of age) whose school or child care provider is closed or unavailable for reasons related to COVID-19, and/or the employee is experiencing a substantially similar condition as specified by the Secretary of Health and Human Services, in consultation with the Secretaries of the Treasury and Labor; and
  • Up to an additional 10 weeks of paid expanded family and medical leave at two-thirds the employee’s regular rate of pay where an employee, who has been employed for at least 30 calendar days, is unable to work due to a bona fide need for leave to care for a child whose school or child care provider is closed or unavailable for reasons related to COVID-19.
Tax credits: “Covered employers qualify for dollar-for-dollar reimbursement through tax credits for qualifying wages under the FFCRA” Health insurance costs included. Please review wage caps, etc.
Questions & Answers **Important**
 
CARES Act

The CARES Act passed the Senate and House of Representatives. The Act has some of the following highlights (taken from The Tax Adviser)

  • Payroll Tax Credit Refunds – advanced refunding from FFCRA.
  • Employee Retention Credit for employers that close to due COVID-19
  • Payroll Tax Delay: Delays payment of 50% of 2020 employer payroll taxes until 12/31/21 and 50% due 12/31/22
In addition, the Act provides loan relief for Small Businesses and expanded unemployment insurance benefits $600 in addition to states previous benefits (for four months).

 

 

 

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