We recently caught up with Vice President Pete Feaman for a conversation about what clients are asking as we head into the summer…
Question: As an employer, I can collect against my employees’ compensation during the pandemic through The Employee Retention Credit (ERC). How much more time do I have to use this option?
“People continue to have questions about Employee Retention Credit (ERC). When the government made updates to the qualifications, many of our clients asked us to go back and apply those changes to 2020.
“The Consolidated Appropriations Act (signed on December 27, 2020) amended and extended the ERC guidelines to include the first and second calendar quarters of 2021. This has since been extended through December 31, 2021, as part of the ARP Act (American Rescue Plan Act) signed on March 11, 2021.”
For the latest on ERC guidelines, read more here.
Question: If I received a loan from The Payroll Protection Program (PPP), what qualifications must my company meet so that I don’t have to pay back the money?
“The Paycheck Protection Program (PPP) ended on May 31, 2021, but those who borrowed money may still be eligible for loan forgiveness. Many of our clients qualified for the second round of loans, so we are helping them run the necessary reports and obtain forgiveness on those loans.”
PPP Loans made to eligible borrowers may qualify for full loan forgiveness if during the 8-24 week covered period if:
- Employee and compensations levels are maintained
- Loan proceeds are spent on payroll cost and other eligible expense
- At least 60% of the proceeds are spent on payroll costs
Question: Our company has a lot of unused PTO. How can we easily manage this as we head into the biggest vacation time of the year?
“A major spike in the number of people and families taking time off is expected this summer. More than ever, clients are asking for tools to help them electronically support employee time off requests, manage employee schedules, and track employee leave balances. Fortunately, we have the tools to help better manage these. Allowing employees to request time off electronically and automatically notifying supervisors to electronically approve or deny is a big benefit to employees. Automating it under the same platform that our clients are used to is a time saver to the employer. ”
If you have questions about any of the topics above, reach out to your IPS representative.