Payroll Compliance

Understanding the New Overtime Rules: What Small Business Owners Need to Know

Small business owners and leaders must stay informed about the evolving landscape of overtime regulations. In this guide, we’ll delve into the recent changes, their significance, and essential steps to prepare your business. What Are the New Overtime Rules? The U.S. Department of Labor (DOL) has revised overtime pay regulations, primarily focusing on the salary threshold. This threshold determines which employees qualify for overtime pay when they exceed 40 hours per week. Why Do These Changes Matter? The updated rules can substantially impact payroll costs and workforce management strategies. Employees previously exempt from overtime may now fall under the new…


The Employee Retention Tax Credit: One of 2020’s Most Disregarded Relief Programs Entered 2021 as a Significant Opportunity for Employers

Businesses significantly impacted by COVID 19 have the opportunity for payroll tax credits (and potential refunds) of up to $33,000 per employee for the combined years of 2020 and 2021. This new opportunity comes as several pieces of federal legislation put into place over the last 12 months amended and strengthened the original program.  Congress created the Employee Retention Tax Credit (ERC) as part of the CARES Act, one of the earliest COVID relief bills signed into law on March 27, 2020.  Another part of the same legislation is the Paycheck Protection Program (PPP).  When the CARES Act was signed…


IRS Clarifies Deductibility and Timing for PPP Related Expenses

On Wednesday, November 18, 2020 the IRS released guidance regarding the deductibility and timing of covered expenses that resulted from the use of funds provided through the Paycheck Protection Program.  The guidance, in part, reads “If a business reasonably believes that a PPP loan will be forgiven in the future, expenses related to the loan are not deductible, whether the business has filed for forgiveness or not.”   The guidance includes links to a related revenue ruling and revenue procedure.  In the revenue ruling, the Service states “A taxpayer that received a covered loan guaranteed under the PPP and paid or incurred certain otherwise deductible expenses…


PPP Covered Period Increased to 24 Weeks; SBA Releases EZ Forgiveness Application to Support New Forgiveness Guidelines

On June 5, 2020 the President signed the Paycheck Protection Program Flexibility Act into law.  The act modified the PPP forgiveness process and provided some much anticipated relief to business owners.  On June 16, 2020 the Small Business Administration released amendments to the  forgiveness application and instructions.  At the same time, a new EZ forgiveness application and instructions were also released.  Paycheck Protection Program EZ Loan Forgiveness Application (Released June 16, 2020) Paycheck Protection Program EZ Loan Forgiveness Application Instructions (Released June 16, 2020) Paycheck Protection Program Loan Forgiveness Application (Revised June 16, 2020) Paycheck Protection Program Loan Forgiveness Application…


We Have Our PPP Loan – What’s Next?

Now that you have your Paycheck Protection Program loan, what steps should you take to ensure you receive the forgiveness you expect from your bank and the SBA? We created this two-part article as a resource to assist you with the forgiveness process. Part one of the article focuses on the process and steps you might consider implementing to manage the forgiveness process. Part two contains a summary of requirements borrowers must meet to obtain forgiveness.  This section also includes a link to the Loan Forgiveness Application and related instructions.  The application, released late on Friday, May 15, 2020, goes…


Resources for Paycheck Protection Program Rules and Guidance

You may have questions related to the Paycheck Protection Program (PPP) loans and forgiveness process. Included here are some of the direct links that may provide you with answers to some of your questions. HCP will work to keep this list updated as new information becomes available. We will also be posting a summary article in the next 2-3 days that will address many of the common questions related to the PPP forgiveness process. Paycheck Protection Program EZ Loan Forgiveness Application (Released June 16, 2020) Paycheck Protection Program EZ Loan Forgiveness Application Instructions (Released June 16, 2020) Paycheck Protection Program…


SBA Provides an Update on Round Two Funding for the Paycheck Protection Program

The Small Business Administration has released results from the first 5 days of the second round of PPP funding. Loan volume through the close of business on Friday, May 1st included the approval of $176 billion through 2.21 million loans. With $310 billion in funding, the second round of loans has $134 billion or 43% of the allocation still available to small businesses. The average loan value for round 2 is currently $79,000, a decrease of $127,000 from the first round average loan value of $206,000.

Payroll Tax

IRS Releases Draft Form 941 to Support FFCRA and CARES Act Payroll Tax Credits

On Wednesday, April 29th the IRS released a draft revision of the Form 941 for expected use beginning with Q2 2020 filings. The draft includes a significant increase in the amount of information required on the form. The current version of the form used to file Q1 2020 required 19 rows of data and the April 22nd draft doubles that number to 38 rows. The increased complexity of the form is a result of the need to account for: Payroll tax credits for the cost of providing qualified sick leave to employees Payroll tax credits for the cost of providing qualified FMLA…


Cyber Scam: Employees Being Asked to Confirm Payroll Amounts for Bogus Stimulus Payments

The various programs being offered to help businesses and employees work through the COVID 19 pandemic have also created opportunities for cyber thieves. With many employees working remotely, it is even more critical to ensure your employees know how to watch for these threats. Attackers are posing as outsourced payroll / HR reps and asking employees to click a link that includes malware. Recipients are being asked to review payroll reports that contain information about a new (fraudulent) stimulus payment. This article provides more details about the scam. Please remind your teams – whether they are working in your office or remotely…


What Documents and Information Should I Gather from my Employees that are Eligible for Paid Sick Leave or Expanded Family Medical Leave as a Result of COVID 19?

The new small business guidelines for paid sick leave and expanded family medical leave provided in the FFCRA include gathering supporting documentation from the impacted employee(s). The following 2 questions from the FAQ’s provided by the Department of Labor provide insight into the information employers should have on file to support their payroll tax credit requests for these types of paid leave. 15. What records do I need to keep when my employee takes paid sick leave or expanded family and medical leave?Regardless of whether you grant or deny a request for paid sick leave or expanded family and medical leave, you…