Employer COVID-19 FAQ
- posted: May 19, 2020
Our COVID-19 FAQ
Here are some general responses to the most common questions we have gotten regarding employment and COVID-19. Please note, that each situation is different. Please call us at 704-643-6650 for advice specific to your situation.
I am a business owner with less than 50 employees, do the new sick leave laws apply to me?
Some parts certainly do and some may not. This is a very fact specific question and the answer will turn on a variety of factors. Generally, even employers with less than 50 employees must pay paid sick leave. They may not have to pay for extended family leave.
One of my employees is violating the stay at home order, what do I do?
If you are aware that one of your employees is not following the stay at home order, it may be advisable to keep that employee from working depending on your business and what exactly the employee did.
I am an employer and I need to lay-off employees. What are the financial implications?
It depends. Right now, if you lay-off employees due to COVID-19, North Carolina is not charging employers accounts for unemployment benefits. If you are one of the Small Businesses who manages to take out a loan under the CARES Act, the potential loan forgiveness could be reduced.
I am an employer and one of my employees cannot work due to COVID-19. What do I do?
If you have less than 500 employees you are covered by the Families First Coronavirus Response Act (FFCRA). Per the FFCRA covered employers must provide their employees with two weeks of paid sick leave, on top of whatever is normally offered by the employer. Per guidance issued by the IRS, if an employer pays sick leave under the FFCRA they are entitled to a credit against their payroll taxes.
What is the PPP?
The PPP is the Paycheck Protection Program that is designed to allow small businesses loans from the federal government that are forgivable in part. Small businesses who get one of these loans and use the money for payroll expenses may be able to have the amount of money used to cover payroll forgiven. The initial funds allocated to the PPP have been claimed; however, it appears that further stimulus money will be allocated to the PPP.