Home › HR Management Matters › Page 4

FINALLY SOME CLARIFICATION…INDEPENDENT CONTRACTOR OR EMPLOYEE?, PART 1

Posted on January 18, 2021 by Trinity HR

This question of an individual is an independent contractor or an employee has never really had a clear answer. As the nature of our economy and how work is performed has evolved (and will continue to do so), the answer has taken on multiple shades of gray.

  • The consequences of misclassification are more far reaching and have much greater impact than many employers realize.
  • Also, the likelihood of the U.S. Department of Labor (DOL) looking into your company’s classifications has never been higher—they have hired a substantial number of auditors for that specific role.

The DOL has announced a final rule clarifying the standard for employee versus independent contractor under the Fair Labor Standards Act (FLSA).

  • The effective date of the final rule is March 8, 2021.
  • The U.S. Department of Labor today announced a final rule clarifying the standard for employee versus independent contractor status under the Fair Labor Standards Act (FLSA).

In making the announcement, DOL officials said the following:

  • “This rule brings long-needed clarity for American workers and employers. “Sharpening the test to determine who is an independent contractor under the Fair Labor Standards Act makes it easier to identify employees covered by the Act, while recognizing and respecting the entrepreneurial spirit of workers who choose to pursue the freedom associated with being an independent contractor.”
  • “Streamlining and clarifying the test to identify independent contractors will reduce worker misclassification, reduce litigation, increase efficiency, and increase job satisfaction and flexibility. The rule we announced today continues our work to simplify the compliance landscape for businesses and to improve conditions for workers. The real-life examples included in the rule provide even greater clarity for the workforce.”

In the final rule, the DOL:

  • Reaffirms an “economic reality” test to determine whether an individual is in business for him or herself (independent contractor) or is economically dependent on a potential employer for work (FLSA employee).
  • Identifies and explains two “core factors” that are most probative to the question of whether a worker is economically dependent on someone else’s business or is in business for him or herself:
    • The nature and degree of control over the work.
    • The worker’s opportunity for profit or loss based on initiative and/or investment.
  • Identifies three other factors that may serve as additional guideposts in the analysis, particularly when the two core factors do not point to the same classification. The factors are:
    However it’s actually a good plan to continue to purchase buy levitra use this link? 3.

    • The amount of skill required for the work.
    • The degree of permanence of the working relationship between the worker and the potential employer.
    • Whether the work is part of an integrated unit of production.
  • The actual practice of the worker and the potential employer is more relevant than what may be contractually or theoretically possible.
  • Provides six fact-specific examples applying the factors.

In Part 2, we’ll talk about:

  1. 1)  The various negative consequences of misclassifications
  2. 2)  The six fact-specific examples applying the factors
  3. 3)  Steps you as an employer can take to avoid–or at least minimize, misclassifications, and the associated consequences

FOR MORE INFORMATION ON HOW TRINITY CAN HELP YOU WITH PROPER CLASSIFICATION OF INDIVIDUALS AS INDEPENDENT CONTRACTORS OR EMPLOYEES (AS WELL AS WITH OTHER PEOPLE-RELATED MATTERS):

YOU HAVE HR QUESTIONS…TRINITY HAS ANSWERS!

Posted in HR Legal & Compliance

A BENEFITS MANAGEMENT CHALLENGE: NON-DISCRIMINATION TESTING

Posted on January 8, 2021 by Trinity HR

There are various complex non-discrimination provisions that apply to self-funded health plans, cafeteria plans, HRAs, and health care and dependent care FSAs.  These include IRC Section 105(h), IRC Section 125, and ACA.  The purpose is to ensure that HCEs and Key Employees do not receive more favorable treatment or greater benefits than non-HCEs/Key Employees.  As well, the definition of Key Employee and HCE can vary somewhat among the different code sections.

Do you have a one or more of the plans listed above?  If yes, have you checked your email to see whether your TPA or broker/consultant sent you the results of the non-discrimination testing for your plans?  Or, as many of us have done, did you file it because it was the end of the year, things were busy and besides, you don’t have to submit it to the IRS or the Dept of Labor?

If the latter, you should open it now and make sure that your plans have passed the discrimination tests.  If not, then benefits that would otherwise have been non-taxable for your Highly Compensated and/or Key Employees may be taxable and reported on the employees’ W-2. (You should consult with your ERISA attorney and/or tax professional.)

Communications will need to be sent to the impacted individuals no doubt raising embarrassing questions as to why you didn’t tell the employees including your Corporate Officers sooner.

How do you avoid having to answer these embarrassing questions?  There are steps that you can take now:

SAMPLE TESTING

Have your TPA or consultant/broker run sample discrimination test(s) for the current year as soon as possible. Ideally, sample testing should be done after the close of the annual enrollment period so that the affected employee(s) can adjust their elections. However, if you run the tests early in the plan year, any issues that turn up in the preliminary test, can be corrected for the current year. This may, again, raise some questions, but best to make the corrections as early as possible.

PLAN DESIGN

Review your plan design. In order to avoid discrimination issues, you may want to consider offering the same plans and employee cost share across the entire organization. If you want to offer additional benefits to executives, then consider separate fully-insured plans or perquisites that are not associated with self-funded health plans, cafeteria plans, etc.

COMMUNICATIONS

HCEs and Key Employees should be aware that there are legal limitations on what can be provided on a pre-tax basis. Communicating this during the annual enrollment period will help alleviate some of the pain if, after sample discrimination testing, elections have to be changed. And, don’t assume that all your HCEs will be in management or above. Highly paid non-exempt employees can move into the HCE category. The definition of an HCE includes employees that were paid $130,000 or more in the prior year and an employee whose salary is in the top 20% (25%) under Section 105(h)) of all employees.

If you passed your discrimination testing, congratulations. What are your next steps? Pretty much the same as for those that do not pass.
Low sex drive or lack that web-site buy cheap cialis of sexual desire in men.

    1. 1)  Do the sample testing for the current plan year to make sure you continue to pass. The definitions of HCE and Key Employee change every year so passing last year does not guarantee passing this year. Further, new employees, salary changes, and promotions will impact this year’s testing.
    2. 2)  Review your plan design to be that you are taking advantage of all the Safe Harbors and that your plans are meeting your employees’ needs. Companies spend a significant amount of money on employee benefits and administration. Employee benefits not only need to be aligned with company goals, but to be a valued part of employee compensation.
    3. 3)  Finally, communications are just as important. Do your employees understand their benefits? You may provide excellent benefits, but if employees do not understand them, you are wasting money. And, while compliance is not going to be interesting to most employees, they do need to understand why you may need to revise some elections, as an example.

Compliance, benefits design, and communications are complex and time consuming.  Trinity HR Consulting can provide support in these areas, to help you meet the challenges, ensure compliance, and help employees understand the value of the benefits that you provide.

    Author: Kathleen Sholinsky, Senior Consultant

For more information, including how Trinity’s team of consultants may be able to help you with BENEFITS MANAGEMENT RELATED MATTERS, such as cost containment and employee education and communication:

You have HR challenges…Trinity has solutions!

Posted in Benefits Management, HR Legal & Compliance

A WAY YOUR HEALTHCARE COSTS RISE

Posted on December 18, 2020 by Trinity HR

An employee questioned why he had received a check for $37,000 from the medical insurer.  He did not understand why the insurance carrier was not, as he was used to happening, paying the bill.

The only recent medical services that he had was a trip to the Emergency Department for a severe hand laceration.  There was concern that the injury would require surgery and a hand surgeon was called in to assess the situation.  He determined that surgery was not needed and stitched the laceration in the ED.

When I called the insurer, I was told that the doctor was out-of-network, (a plastic surgeon, not a hand surgeon) so the payment was sent to the insured to then pay the provider.  With respect to the amount of the payment, had the surgeon been in-network, the reimbursement would have been between $1,800 and $2,000. Since he was out-of-network, and because the plan paid emergency charges at the billed rate, his $37,000 bill would be paid.

  • However, the employee still had an out-of-pocket maximum of $9,000 for which he would be personally responsible.
  • The employee was shocked and outraged. He quickly got past his outrage when the doctor told him that he would accept the $37,000 as payment in full and mailed the check to the doctor.

So, a happy ending, correct?

  • YES, FOR THE DOCTOR as he was paid, and YES FOR THE EMPLOYEE as he was not financially harmed.
  • NO, NOT FOR THE EMPLOYER!
    • The employer’s plan paid about $35,000 more than for an in-network provider.
    • In turn, this impacted claim costs and therefore the employer’s cost and the employees’ share of the cost for medical coverage.
    • MANY EMPLOYEES AND SOME EMPLOYERS DO NOT ASSOCIATE INCREASED CLAIM COSTS WITH INCREASED PREMIUMS.

What Can Employers Do?

  1. Continue communicating to employees that using network providers is important and not just because of cost.
    • Health plans screen providers for quality and safety performance and credentialing standards. They also set ongoing quality standards and periodically re-evaluate their providers. Most plans have robust networks of physicians, hospitals, and other services patients will need.
    • Not enough communication is done around the non-cost advantages of networks.
  2. Remind employees to check every time they are referred to a hospital, specialist, and laboratory to ensure that the provider is in-network.
    • They need to check even if the specialist is associated with a network practice or hospital. It is their responsibility to make sure of the provider’s network status and no provider should be insulted to be asked.

      • Certificate (The Convention on International Trade in try this link cheap cialis Endangered Species of Wild Fauna and Flora).

  3. Make it easy for employees to find network providers.
    • Most insurers have online provider lists so send them the link frequently and encourage them to use it.
  4. Consider communicating with your employees about how costs are calculated and the relationship between high claims and high premiums.
    • As an employer you understand this relationship.
    • However, many employees think the claims costs are the insurers’ problem and do not realize the direct effect on the total cost of coverage, including the portion by them.
  5. Work with your carrier on the issue of paying non-network physician specialists.
    • It is difficult to find certain types of specialists in-network and employees should not be penalized.
    • Know what your carrier will do if they do not have a particular specialty in-network or do not have robust network.

Author: Kathleen Sholinsky, Senior Consultant

For more information, including how Trinity’s team of consultants may be able to help you with BENEFITS MANAGEMENT RELATED MATTERS, such as cost containment and employee education and communication:

You have HR challenges…Trinity has solutions!

Posted in Benefits Management

THE INTERSECTION OF POLITICS & THE WORKPLACE, PART 3

Posted on October 30, 2020 by Trinity HR

As November 3rd is only several days away, we are being bombarded with TV ads, radio ads, political rallies and pollster phone calls. It would be naive and unwise to believe this is not spilling over into our workplaces.

So here in Part 3 (the final article on the topic of this subject), we will discuss some steps that we as employers should be considering even at this late date—assuming we haven’t already done so.

  • These steps piggyback on Part 2’s discussion about the two most common misconceptions about politics in the workplace.

Keep in mind that there are reasons to be ready for politics and the workplace to intersect (perhaps one could use the word “collide”) well after the election. These reasons include:

  • Some so-called experts are predicting that it could be days or even weeks before the final outcomes are known—especially with some states accepting mail-in ballots received after election day.
  • The potential for challenges by either or both parties as to the outcomes in which the margin of victory is very small or the winner is disputed.
  • The controversial constitutional challenge to the Affordable Care Act will not even have oral arguments made to the U.S. Supreme Court until November 10.

WHAT CAN AN EMPLOYER DO NOW?

  1. 1) Remind employees that within the organization everyone is on the same team with the common goal of:
    • Providing your customers/clients with high quality products and services
    • Outperforming your competitors
  2. 2) Restate that conversations about politics are prohibited during work time in work areas
  3. 3) Reaffirm that your organization’s culture includes:
    • All employees are expected to treat one another respectfully
    • Embracing and valuing diversity not only in race, national origin, gender, etc., but also in points of view
  4. 4) Relate that political discussions can negatively impact:
    • Maintaining a harmonious work environment
    • Productivity
  5. 5) Reinforce with your supervisors, managers and executives that engaging in a political conversation with a subordinate has the potential for an employee to allege harassment, bullying or discrimination

THREE KEY POINTS
An indicating molecule similar to testosterone connects with the assortment of chemical receptors in the brain. cialis price

  1. 1) As with other aspects of an organization’s work rules, policies and practices, the key for employers is to ensure that they are uniformly enforced.
  2. 2) Before taking any disciplinary action against an employee:
    • Review whether the conduct is protected by either state or federal law
    • Determine if there is a bona fide business interest in restricting the speech or conduct
    • Be confident the employee’s act violated a known policy or practice
    • Look at how similar situations have previously been handled
  3. 3) Going forward, ensure:
    1. Workplace policies and employee handbooks statements are updated as needed, such as:
      • Employee speech and activity, including but not only related to politics and social causes
      • Dress code, including wearing of badges, buttons or clothing/hats
      • Personal appearance
    2. Regularly communicating with employees on a periodic basis about the organization’s culture and values, work rules, policies, etc.—the reasons for them
  • If there is any doubt, consult with legal counsel practicing in the area of employment law or with a management consultant with appropriate expertise.

FOR MORE INFORMATION ON HOW TRINITY CAN HELP YOU WITH PEOPLE-RELATED MATTERS:

  • E mail Trinity at info@TrinityHR.net
  • Visit our website at www.TrinityHR.net
  • Call us at 856.905.1762 or Toll Free at 877.228.6810

You have HR questions…Trinity has answers!

Posted in HR Legal & Compliance

THE INTERSECTION OF POLITICS & THE WORKPLACE, PART 2

Posted on October 22, 2020 by Trinity HR

As Part 1 on this subject pointed out:

  • During a Presidential election year, political differences are ramped up more than usual.
  • Given the current social and highly contentious political climate present in America, those differences have an even greater potential to spill over into the workplace.
    • The potential for heated disagreements between co-works – and for inflammatory, impulsive, ill-advised comments – is obvious.

In Part 2 on this subject, we’ll provide information about two common misconceptions:

MISCONCEPTION #1: EMPLOYEES MUST BE ALLOWED TO TALK “POLITICS” AT WORK.

  • WRONG.
  • Some employers (and many employees) commonly but mistakenly believe that the First Amendment to the U.S. Constitution guarantees “freedom of speech” at work.
  • The First Amendment applies only to government action and does not limit the rights of private employers to regulate employees’ communications nor does it provide any Constitutional right for workers to express thoughts or opinions at work.
  • As a result, there is no general right of “free speech” in a private employer workplace.
    • The National Labor Relations Act (NLRA) does restrict an employer’s right to limit workers’ communications about wages, hours and the terms or conditions of employment during non-work time in non-work areas.
    • However, employers may restrict workplace communications that are purely “political” in nature as long as any such rules are uniformly enforced.
    • For example, an employer legally could forbid communications generally touting a political party or candidate; displaying or distributing a poster or campaign button (“Vote for LoDico”); and wearing a T-shirt that seeks support a particular political party or candidate.
  • In other words, although employees may be entitled to express their views freely on their own time off company premises, they typically have no such rights at work.
      After all, opacc.cv levitra sale in Singapore, if you want to succeed professionally, you have to work like there’s no tomorrow.

    • If this sounds familiar to you, that’s because this same principle applies with respect to unionization activity.

MISCONCEPTION #2: EMPLOYEES MUST BE ALLOWED TO DISPLAY AND DISTRIBUTE POLITICAL MATERIALS IN THE WORKPLACE.

  • WRONG.
  • Employers have the right to ban in their workplaces any non-work-related activities, including political activities.
    • There is not always a “bright line” distinction under the NLRA between “protected” and “unprotected” activities (such as distributions, solicitations). Therefore, consulting with legal counsel is advisable and thus has a negative

In Part 3 (the last in this series) on this subject, we identify some specific actions employers should take.

FOR MORE INFORMATION ON HOW TRINITY CAN HELP YOU WITH PEOPLE-RELATED MATTERS:

  • E mail Trinity at info@TrinityHR.net
  • Visit our website at www.TrinityHR.net
  • Call us at 856.905.1762 or Toll Free at 877.228.6810

You have HR questions…Trinity has answers!

Posted in HR Legal & Compliance

THE INTERSECTION OF POLITICS & THE WORKPLACE, PART 1

Posted on October 19, 2020 by Trinity HR

It has long been held that the two most emotionally charged issued amongst people are those involving religion and politics. During a Presidential election year, political differences are ramped up more than usual. Given the current social and highly contentious political climate present in America, those differences have an even greater potential to spill over into the workplace.

This is the dilemma facing most employers today. As organizations respond internally and externally to the pandemic, social unrest, climate change and other matters of the day, the reaction is likely to be quite different depending on individual political affiliation. And in today’s “cancel culture,” taking a political or social stance can be too daunting for many organizations—the risks may outweigh the rewards.

It won’t be surprising to see attitudes and rhetoric heat up as we get closer to November 3. And with this year’s election being more of an election season (due to mail in voting), the period of up for personal politics to intersect with the workplace is already upon us.

Various surveys of employees reveal that they have differing viewpoints as to what is appropriate discussion between co-workers. Here are some examples of that from surveys:

  • 60% of employees believe discussing politics at work is unacceptable.
    • Female employees are more likely than male employees to believe discussing politics at work is unacceptable (66% of females & to 54% of males).
  • Yet 57% say they have engaged in discussing politics at work.
    • 28% of employees say a co-worker has tried to persuade them to change their political party preference in the past year.
  • 24% of Republican employees and 23% of Democrat employees would not want to work with a co-worker who plans to vote for a presidential candidate they don’t like in this election.
  • 33% of employees state they would not apply to work for a company that actively supports a political party or a social position different than their own.

In Part 2 of this dilemma, we’ll discuss how employers can best address:

  1. 1)  Political talk in the workplace
  2. 2)  Political statement clothing, including face masks

FOR MORE INFORMATION ON HOW TRINITY CAN HELP YOU WITH ANY PEOPLE-RELATED MATTERS:

  • E mail Trinity at info@TrinityHR.net
  • Visit our website at www.TrinityHR.net
  • Call us at 856.905.1762 or Toll Free at 877.228.6810

You have HR challenges…Trinity has solutions!

Posted in HR Legal & Compliance

STRATEGY DURING & AFTER A BUSINESS CRISIS

Posted on September 21, 2020 by Trinity HR

Successful businesses typically have a multiple set of competencies. Placed in a position of prominence
within this set is being skilled at initiating and implementing strategy.

At the center of strategy is the basic assumption that executives are capable of using their analytic tools to envision within reasonable accuracy the future landscape. In turn, executives can then develop and implement an appropriate strategic path forward to achieve success for their business.

  • During a crisis, strategy often becomes of even greater importance in determining how the organization will fare during and after the strategy.

By nearly universal agreement, the invasion of the Covid-19 virus has clearly caused, has been, and is a crisis of huge magnitude. In the midst of the Covid-19 crisis, the future has had and to a large extent still has a high degree of uncertainty. In part, because of multiple factors being in play.

Some of these are shown in question form below:

  • When will business get back to normal?
  • What will the new normal be?
  • How reliable will supply chains that have been disrupted or changed be?
  • What government regulations/guidelines will have to be followed?
  • How will consumers (whether other businesses or individuals) act in the new normal?
  • With all of this uncertainty, will this basic assumption about strategy still be valid in the short term?
    • The short term is what most matters during and immediately after a business crisis—so that’s the focus of this article.
    • I’m reminded of what was so simply stated by famed economist Lord Maynard Keynes in regard to the short-term and the long-term, “in the long run we’re all dead”.

In the short-term, will business leaders’ ability to identify successful strategies be at:

  1. 1) The same degree of reliability?
  2. 2) A somewhat reduced level?
  3. 3) A significantly reduced level?

To a great extent, the most likely answer depends upon the level of the short-term future’s uncertainty. For the most part, future uncertainty can be classified into four levels, which are described below:
So with this one order cialis our drugstore can make out the effects are instant and after one hour the body is the use of diuretics.

LEVEL 1: A CLEAR ENOUGH FUTURE

  • The residual uncertainty is irrelevant to making strategic decisions at level one. Therefore, the strategists can develop a single forecast that is a sufficiently precise basis for their strategies.

LEVEL 2: ALTERNATIVE FUTURES

  • At this level, the future can be described as one of a few discrete scenarios. Analysis can’t identify which outcome will actually come to pass, though it may help establish probabilities.
  • Hence, the organization needs to develop its own unique set of scenarios based based on their understanding of how the uncertainties will play out and the appropriate valuation model.

LEVEL 3: A RANGE OF POTENTIAL FUTURES

  • At this level, there is a more extensive range of potential futures. Although there are no natural discrete scenarios, nonetheless, it is possible to identify all or almost all of the potential outcomes.
  • Companies in emerging industries or entering new markets (geographically or by product or services category) often face this.

LEVEL 4: TRUE AMBIGUITY

  • Level 4 situations are quite rare, and they tend to evolve into one of the others over time. Nevertheless, they do exist.
  • A number of dimensions of uncertainty interact to create an environment that is virtually impossible to predict.
  • Due to the extent and degree of the uncertainties, it is impossible to identify a range of potential outcomes, let alone scenarios within a range. It might not even be possible to identify, much less predict, all the relevant variables that will define the future.

FOR MORE INFORMATION AS TO HOW TRINITY MAY BE ABLE TO ASSIST YOU WITH ANY PEOPLE-RELATED MATTERS:

  • E mail Trinity at info@TrinityHR.net
  • Visit our website at www.TrinityHR.net
  • Call us at 856.905.1762 or Toll Free at 877.228.6810

You have HR opportunities…Trinity has paths forward!

Posted in Strategy, Management & Leadership

HUMAN RESOURCES ASSESSMENT: WHAT & WHY

Posted on August 14, 2020 by Trinity HR

WHAT IS TRINITY’S ASSESSMENT OF THE HR FUNCTION?

Trinity’s Human Resources Assessment is a process of examining policies, practices, procedures, forms, records and systems with respect to an organization’s HR function.  It is a diagnostic tool to:

  • Highlight strengths
  • Identify problem areas (for example, lack of compliance to employment-related regulatory requirements)
  • Recommended corrective action
  • Provide valuable information for your HR function’s path forward.

WHAT DOES THE HR ASSESSMENT INCLUDE?

  • HR-Related Policies – Key policies that are non-existent or not up to date
  • Employee Handbook – Review to ensure its up-to-date & content includes appropriate key information
  • Fair Labor Standards Act – Determine misclassification of an employee in terms of exempt or non-exempt status
  • Fair Labor Standards Act – Review of proper calculation of hours of work and payment of overtime
  • Employment Application – Review to ensure it does not ask for prohibited information & assurance of appropriate acknowledgements/authorizations by applicants
  • Recruitment & Selection – Review of practices & documentation
  • Disciplinary Action Process – Review of investigative process & documentation
  • Personnel Files & Recordkeeping – Ensure appropriateness
  • Posting of Required Notices – Ensure required notices are properly posted

    • It has been commenced to take one pill in 36 hours, and the tablets can be taken by people of any age. http://greyandgrey.com/buy-3346 cialis 10 mg

WHY IS IT VALUABLE TO YOUR ORGANIZATION?

How sure are you that your company is in compliance with the myriad of complex HR laws & regulations with which it has to comply? The question is an important one given the following four facts:

  • The government continues to extend its reach into business activities, especially at the state and local levels.
  • The number of employee administrative agency complaints & employment related lawsuits continues to increase.
  • The fines and penalties to which you could be subjected can by financially burdening.
  • The harm to a company’s reputation & image can have a devastating impact with respect to customers/clients, current and potential employees, suppliers and other individuals or entities.

FOR MORE INFORMATION:

  • Email Trinity at info@TrinityHR.net
  • Visit our website at www.TrinityHR.net
  • Call us at 856.905.1762 or Toll Free at 877.228.6810

YOU HAVE HR QUESTIONS…TRINITY HAS ANSWERS

Posted in HR Legal & Compliance

PAYCHECK PROTECTION PROGRAM FLEXIBILITY ACT

Posted on June 12, 2020 by Trinity HR

On June 5th, President Trump signed into law the Paycheck Protection Program Flexibility Act (“PPPFA” or “Act”). This business-friendly law provides greater flexibility for employers receiving loans under the Coronavirus Aid, Relief, and Economic Security (“CARES’) Act’s Paycheck Protection Program (“PPP”). The Act:

1) Extends time frames

2) Expands exemptions

and

3) Modifies other PPP terms affecting potential loan forgiveness and repayment.

Here is some important information about these three provisions of the Flexibility Act:

1) EXTENDED “COVERED PERIOD” FOR USING LOAN PROCEEDS

Initially, under the PPP, loan recipients needed to spend PPP loan proceeds on approved expenses within a period of eight weeks to potentially qualify for loan forgiveness.

  • Many businesses expressed concern that an eight week period was simply too short of a time period.

The new law expands this period so that borrowers may now spend their PPP loan amounts over the EARLIER of:

(a) A period of 24 weeks from the origination of the Loan

or

(b) December 31, 2020

Borrowers may still choose to use the original eight-week covered loan period in the Payroll Protection Program or alternative payroll covered period provided in the Small Business Administration’s guidance related to loan forgiveness.

2) REDUCED % OF LOAN TO BE SPENT ON PAYROLL FOR FORGIVENESS

Initially, in order for a borrower to obtain loan forgiveness, businesses had to spend 75% of their loan amount on payroll costs, with 25% able to be spent on qualified non-payroll expenses.

The Forgiveness Act reduces the % that needs to be spent on payroll costs to 60% of PPP loan proceeds need to be spent on payroll costs in order for the loan to be forgiven. This leaves 40% which can be spent on qualified non-payroll expenses.

  • This gives employers some welcome flexibility to use loan proceeds on rent, mortgage payments and other qualified non-payroll expenses.

3) EXPANDED EXEMPTIONS FROM LOAN FORGIVENESS REQUIREMENTS

A. The PPP provided that employers who had experienced a reduction in either employee headcount or employee salaries between February 15, 2020 and April 26, 2020 could receive forgiveness if it eliminated any reduction headcount and salary by June 30, 2020.

→ The PPP Flexibility Act extends this June 30 date to December 31, 2020.

B. The Flexibility Act also expands exemptions from the reduction to loan forgiveness corresponding to a reduction in the number of full-time equivalent (FTE) employees.

And as it was discussed earlier than one doesn’t need a doctor’s prescription to obtain the medicine, but doctor supervision is required to assess your real status. viagra no prescription view to find out more

      • An employer who has experienced a reduction in FTE employees after February 15 will not see a reduction in loan forgiveness based on FTE count if it can document in good faith that it has been unable to:

1) Rehire individuals who were employed by the business on February 15, 2020 and also unable to hire similarly qualified employees for unfilled positions on or before December 31, 2020

or

2) Return to the same level of business activity at which it was operating before February 15, 2020 due to compliance with requirements or guidance from the U.S. Secretary of Health and Human Services, CDC or OSHA between March 1 and December 31 relating to standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID-19.

4) FIVE-YEAR REPAYMENT PERIOD FOR NEW LOANS

A. For PPP loans made on or after the June 5th effective date of the Flexibility Act, borrowers will have a period of at least five years to pay off the portion of any loan which is not forgiven.

B. For loans made before the Flexibility Act effective date of June 5, lenders and borrowers may, but are not required to, mutually agree to modify the terms of an existing loan to include a minimum five-year period for repayment of any unforgiven amounts.

5) EXTENSION OF LOAN DEFERRAL PERIOD

The Flexibility Act also expands the six-month loan deferral period created by the PPP. Repayment of a PPP loan is now deferred until after the SBA has determined the borrower’s loan forgiveness amount and remitted that amount to the lender.

FOR MORE INFORMATION ABOUT RE-OPENING CHALLENGES:

  • Email Trinity at info@TrinityHR.net
  • Visit our website at www.TrinityHR.net
  • Call us at 856.905.1762 or Toll Free at 877.228.6810

YOU HAVE HR CHALLENGES…TRINITY HAS SOLUTIONS!

 

Posted in HR Legal & Compliance

FAMILIES FIRST CORONAVIRUS RESPONSE ACT: EMERGENCY PAID SICK LEAVE & EMERGENCY FMLA LEAVE, PART 2

Posted on April 27, 2020 by Trinity HR

AMOUNT OF WAGE REPLACEMENT

If an employee needs leave for the employee’s own illness, the need to self-quarantine, or the need to get a medical diagnosis, the employer must pay the employee’s full regular wage for the 10 days of paid sick leave.

If the employee needs leave to care for someone else, the employer must pay the employee two-thirds of the employee’s wages for the 10 days of paid sick leave.

For the 10 weeks of emergency FMLA leave, the employer must pay two-thirds of the employee’s regular wage.

However, regardless of the employee’s salary, the law limits the amount of payments the employer must make, so that such payments will be equal to the tax credit the employer will receive in return.

For emergency paid sick leave payments, that means an employee may receive a maximum of $511 per day and $5,110 in the aggregate if the employee uses the sick time because of their own needs. The employee may receive up to $200 per day and $2,000 in the aggregate if the employee uses the 10 sick days to care for someone else. The employee may use other paid leave available under the employer’s program to increase the payments received.

For emergency FMLA leave payments, the employee may receive a maximum of $200 per day and $10,000 in the aggregate.

Thus, the amount of wages that employers must pay for either the new mandated emergency paid sick leave or emergency FMLA leave will never exceed the tax credit that the employer will be permitted to apply against certain taxes. (See description of the tax credit below.)

PAID LEAVE USES

The emergency paid sick leave may be used if an employee cannot work (or telework) if the employee:

  1. Is subject to a federal, state, or local quarantine or isolation order related to COVID-19.
  2. Has been advised by a healthcare provider to self-quarantine based on a belief that the employee (1) has COVID-19, (2) may have COVID-19, or (3) is particularly vulnerable to COVID-19.
  3. Is seeking a medical diagnosis because the employee is experiencing the symptoms of COVID-19.
  4. Is caring for an individual who is subject to a federal, state, or local quarantine or isolation order related to COVID-19, or has been advised by a healthcare provider to self-quarantine based on a belief that the individual (1) has COVID-19, (2) may have COVID-19, or (3) is particularly vulnerable to COVID-19.
  5. Needs to care for a child if the child’s school or child care location has been closed, or if the child’s care provider is unavailable due to precautions related to COVID-19. This includes an adult child who has a mental or physical disability and is incapable of self-care because of that disability.

For purposes of the emergency FMLA leave, the only qualifying reason for that leave is if the employee is unable to work or telework because he or she must care for a child if, due to a declared public health emergency related to COVID-19, (1) the child’s school or place of care has been closed, or (2) the child’s care provider is unavailable due to reasons related to COVID-19.

If the closure of the school or place of care or the unavailability of the child’s care provider is foreseeable, the employee must provide the employer with notice of leave as soon as practicable.

NOTICE POSTING

An employer must post a notice for employees about the requirements of the law. The DOL has provided model posters for federal and nonfederal employees. The DOL has posted FAQs about the notice requirement and has expanded on the notice requirements in its rule.

The employer may not require that the employee find or search for a replacement to cover the hours the employee will be on sick leave.

TAX CREDIT

The FFCRA authorizes a tax credit for qualified sick leave wages and qualified family medical leave wages. The tax credits are equal to the maximum amounts that the employers must pay to employees under the law.

He can’t have an orgasm, and he may have buy cheap cialis browse around description some impact on his penile organ.
The IRS has provided FAQs on the tax credit provision that include the following information:

  • Employers are entitled to a credit for health insurance costs required to maintain insurance for employees during their leave periods.
  • Employers may retain (i.e., not send to the IRS) taxes they would have paid for both the employee and the employer share (for all employees) of Social Security and Medicare taxes, as well as amounts that would have been withheld for employees’ federal income taxes.
  • If the amount the employer retains is not sufficient to cover the costs of the qualified leave, the IRS will allow employers to seek an expedited advance from the IRS.
  • Tax-exempt employers with fewer than 500 employees can use the credit to offset their payroll tax liability.

MULTIEMPLOYER COLLECTIVE BARGAINING AGREEMENTS

For employers that participate in multiemployer collective bargaining agreements (CBAs), the employer can fulfill the law’s requirements by making contributions to the multiemployer fund or plan based on the hours of paid short-term and long-term leave each of its employees is entitled to under the law. But the fund must allow employees to secure pay from the fund or plan for the paid leave the law requires.

NON-DISCRIMINATION AND ANTI-RETALIATION

The law prohibits an employer from discriminating against an employee for using emergency paid sick leave or emergency FMLA leave, filing a complaint, or testifying in an action under the law. The FMLA’s existing prohibition against retaliation applies with regard to employees who take the emergency FMLA leave.

ENFORCEMENT

An employer that fails to provide the required leave or engages in discrimination, including retaliation, faces enforcement actions under the FLSA. An enforcement action can be brought by a single employee or as a collective action, or by the US Secretary of Labor. Penalties would include payment of the unpaid wages plus an equal amount as liquidated damages, equitable relief (such as reinstatement), injunctive relief, and even criminal prosecution for willful violations. Attorney fees and costs can also be awarded.

An employer who fails to provide the emergency FMLA leave faces the enforcement provisions of the FMLA.

The DOL will hold off on strict enforcement, however, for 30 days, to provide employers time to comply. The DOL will not enforce violations during this period so long as employers have acted reasonably and in good faith to comply. There is no similar restriction on actions brought by employees.

NON-PREEMPTION

Nothing in the Families First Coronavirus Act diminishes the rights that employees have under any of the following:

  • Federal, state, or local laws
  • A collective bargaining agreement
  • An employer’s existing policy

FOR MORE INFORMATION, INCLUDING HOW TRINITY’S TEAM OF CONSULTANTS MAY BE ABLE TO HELP YOU WITH THIS OR OTHER PEOPLE-RELATED MATTERS:

  • Email Trinity at info@TrinityHR.net
  • Visit our website at www.TrinityHR.net
  • Call us at 856.905.1762 or Toll Free at 877.228.6810

YOU HAVE HR QUESTIONS…TRINITY HAS ANSWERS!

Posted in HR Legal & Compliance