Compliance Updates to Keep Your Business on Track
Stay informed and in compliance with these updates from TEAM Software.
Now more than ever, the landscape for labor, tax and payroll compliance is shifting. We know it’s a challenge for cleaning and security contractors like you to stay informed with these rapidly changing topics, and how costly noncompliance can be. To help you stay informed, we’ve compiled what we consider our top trends for you to watch right now and what they mean for your business.
Paycheck Protection Program (PPP) Flexibility Act of 2020
PPP Flexibility Act of 2020 (H.R.7010) was signed into law on June 5, 2020. This bill modifies provisions related to the forgiveness of loans made to small businesses under the PPP implemented in response to COVID-19, to make it a bit easier for businesses.
Some of the key highlights:
- Changes amount of loan needed for payroll to 60% from 75%
- Extends time period to use funds from 8 to 24 weeks
- Extends a June 30 deadline to rehire workers to December 31, 2020
- Eases rehire requirements
- Extends the repayment term from 2 years to 5
- Reminder: no new PPP loans may be originated after June 30, 2020
Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act
The HEROES Act (H.R.6800) is in the Senate. This act is proposed legislation passed by the United States House Of Representatives on May 15, 2020 that is worth $3 trillion in response to the COVID-19 pandemic. We’re watching this closely and are planning to provide updates as needed.
COVID-19 Compliance Updates
TEAM is working to provide the documentation our customers need to complete the PPP Schedule A Worksheet, used for calculating payroll costs, down to the employee level, as well as help you fill in full-time employee values, and salary/wage reductions, and complete the FTE Reduction Safe Harbor assessment.
For the Families First Coronavirus Response Act (FFCRA), quarterly filings are coming and you can start adding tax credits from COVID Sick Leave and Emergency Family Medical Leave Act (EFMLA). To help you claim the correct tax credits associated with FFCRA, we added a solution to claim these credits during payroll processing.
For the PPP portion of the CARES Act, June 30,2020 is your first opportunity to apply for loan forgiveness and we’re working to have more information available at that time.
Processing COVID-19 Disaster Pay for FFCRA
Payroll processing updates have been made to make sure COVID-19 disaster-related pay is tracked and managed correctly. Disaster hours types allow you to track COVID-19 hours for hourly and salaried employees. The tools help ensure employees aren’t being paid more than allowed for disaster types based on total dollar and total hour limits, as well as daily hour limits. The ability to create COVID-19 tax codes and apply credits when running payroll has also been added.
To help you navigate the COVID-19 disaster pay setup process and for additional resources, visit the COVID-19 toolkit on the Learning Center, TEAM’s 24/7 help site.
U.S. Equal Employment Opportunity Commission (EEOC) Updated Guidance and Filing Deadlines
The EEOC has delayed the opening of the 2019 EEO-1 Component 1 data collection until 2021 to ensure Equal Employment Opportunity (EEO) filers are better positioned to provide accurate, valid and reliable data in a timely manner. The EEOC expects to begin collecting the 2019 and 2020 EEO-1 Component 1 in March 2021 and will notify filers of an exact date as soon as it’s available.
The EEOC has also updated its guidance on COVID-19 and the Americans with Disabilities Act (ADA). The update clarifies how to accommodate individuals who are at high risk for severe illness from the coronavirus, including how and what to discuss with a high-risk employee with a disability who requests an accommodation. Visit shrm.org for additional information on direct-threat standards, at-risk workers, managerial training and the response process.
As of now, we’re tracking changes for the U.S. but don’t have any changes to report for July 1. For Canada, the 112th edition Payroll Deductions Formulas guide (T4127) is effective July 1, 2020. This edition includes provincial and territorial changes for British Columbia and Yukon.
This list highlights some of the important U.S. HR, tax and payroll compliance updates we’re tracking. Please continue to use industry resources such as the Society for Human Resource Management (SHRM) and the American Payroll Association (APA) to stay updated on all tax-related compliance changes. TEAM’s dedicated to ensuring our software solutions meet the ever-changing compliance needs of our customers. While we’re committed to keeping you informed, it’s important to do your own research, and consult your own legal and tax advisors with specific questions or concerns.