NAPEO Webinar: Insights & Perspectives on the Government’s COVID-19 Response

Dear Valued Clients,

The NAPEO webinar from this Tuesday, 3/24/2020, offered some insights and perspectives on the government’s COVID-19 response and how it relates to businesses like yours.

We recommend that you watch the recording of the webinar and review the PDF file of the accompanying slide show to gain a better understanding of the business landscape as it stands now.

Accompanying Slide presentation: Click Here

The list of topics covered include:

• Act likely to take effect on or about April 2
• Act does NOT appear to be retroactive
• Act has six (6) major components, two (2) of which have the most application to PEOs
• The two provisions that have most application to PEOs are the FMLA-related Leave provisions AND the tax credits related to the Leave provisions
• Business tax credit for FMLA is an immediate credit; no waiting until end of quarter
• There are six (6) ways for an employee to qualify for Leave
• Data provided on the slides for calculating the amount of Paid Leave
• IRS just officially declared some limited guidance, in IR-2020-57
• DOL and IRS will be declaring additional guidance in the days to come – important for PEOs
• Exemption to new law can apply to businesses in certain situations for economic “hardship”” (provisions to be determined)
• Method for determining the 500-employee count (for companies that are close to being under or over)
• How to handle situation when tax credit exceeds owed taxes
• How will Unemployment Insurance affect SUTA unemployment ratings
• What happens if employees are laid off before April 2?
• Discussion re: whether employee paid leave is shown as such on employee pay stubs (PTO plan/process)
• If a business shuts down, does that business have to comply to the Leave provisions of this law?  Group says no.
• Forms will certify medical conditions and the need for quarantine, etc. for employees with respect to Paid Leave (“qualifying event”)
• Penalties with two enforcement options: FLSA (potential owner liability) and current FMLA provisions (interference, retaliation)
• If position has been eliminated during their leave, there is no FMLA reinstatement, but element of employer good faith is assumed
• 30 day “safe harbor” for employers who have attempted to follow best practices and compliance with new law

We will continue to update you with news and developments as more information becomes available.

Sincerely,

IES & Afinida Team