Recalling Staff From Furlough or Layoff

As restrictions are lifted around our communities many businesses are in the process of recalling staff that have been furloughed or laid off.  Here are a few things to keep in mind when getting back to business.

Recall Letter

When calling these staff back to work it is recommended that employers send out a recall letter.  This letter is similar to an offer letter but should contain key items.

  1. Make sure to outline the staff member’s return date, job title, job responsibilities, hours/shift, supervisor, and wage.  This is especially important if any of these will change when they return to work.
  2. Outline any major changes you are implementing at your business; hours of operation, changes to processes/procedures, any policy changes, etc.
  3. A deadline to respond with either acceptance or decline; ensuring you know if a staff member plans on coming back or not.  I also recommend including language that states if a staff member does not respond by the deadline that you will take their non-response as a decline and terminate their employment.
  4. Document any safety measures you are implementing or have implemented to ensure the safety of your staff.  An outline of the precautions will help make your employees feel safe and ready to come back to work.
  5. Encourage staff to get in touch with you if they have concerns or need to talk about their individual situation.  Some staff may need more reassurance that you are doing what you can to ensure their safety and some may have a situation that will prevent them from coming back.  Open dialogue will be essential during this time.
  6. Include, if applicable, any at-will employment language.

The letter will help staff understand what is expected of them, what you have done to ensure their safety, and will provide you with documentation of the recall.

Reemployment Assistance

If you have staff members that decline to come back to work, it is important to know that they may lose their reemployment benefit with the state and federal government.  According to the South Dakota Department of Labor and Regulations (DOL) a staff member who refuses to return to work when recalled may lose their benefit, except in certain circumstances.  The full list of circumstance can be found on the DOL website at https://dlr.sd.gov/ra/individuals/refusal_to_work.aspx.  The website specifically states that being uncomfortable about returning to work when recalled is not an acceptable reason to decline work.

If you do have staff that refuse to return to work and don’t fall under one of the circumstances listed on their website, the DOL recommends that you notify them immediately via email at  [email protected].

Documentation

Make sure to keep a copy of the recall letter and make any notes to the acceptance or decline of the offer.  If you do have a staff member that reaches out to you regarding their return to work, it is essential that you document any discussion of that return.  The staff member may have concern over safety or may have a legitimate reason for not coming back (like having COVID-19 or taking care of a child because of school closure).  Document the conversation as well as any compromise or adjustment you will make to that staff members specific situation.  It is recommended to have discussions with staff regarding their return if they have a concern and try to work out a return situation that works for both the employer and the employee.

For more information on COVID-19 legislation/regulations see the Ketel Thorstenson website at ktllp.com.

May 7, 2020

Keeping Your Employees Safe During the Coronavirus Pandemic

As we continue to do business during the coronavirus pandemic, protecting the health and safety of our employees is essential. Keeping a workplace safe benefits your company and your employees and their families. Here are 8 ways you can provide a safe working environment.

  1. Actively encourage sick employees to stay home. The Center for Disease Control and Prevention (CDC) recommends that sick employees who have not been tested for the coronavirus stay home until they are fever free for at least 72 hours, without the use of medicine, and their other symptoms have improved.  However, if an employee has been tested, the CDC recommends they not only stay home for 72 hours, but also wait until the test has returned negative. Those who test positive should follow their doctor’s and the CDC’s guidelines for returning to work.
  2. Require employees who travel to impacted areas to self-quarantine for 14 days. The coronavirus incubation period is 14 days and not all those infected show symptoms. To ensure an employee hasn’t contracted the virus a 14-day self-quarantine is recommended after travel.
  3. Limit the number of people in your building. Consider allowing or requiring staff to work from home if their job allows it. Limit or eliminate the number of customers you allow into your business at one time or try curbside pick or delivery. The fewer people you have in your business the lower the potential of spreading the virus within your building.
  4. Continue social distancing. As businesses in our communities start to open. maintaining social distancing will be essential to slow the spread of the virus. Stay 6 feet apart, do contactless delivery of services, use virtual meeting options, and cancel/postpone large gatherings.
  5. Switch to virtual meetings. If you have regular staff meetings or meet with customers in person, see if there is a way to do this virtually. If a meeting is unavoidable make sure to conduct social distancing when you do meet; stick to larger conference rooms and sit apart from each other.
  6. Encourage and support good hygiene. Good hygiene includes hand washing, using hand sanitizer, eliminating handshaking, and covering your mouth and nose when you cough or sneeze. Make sure you are providing the necessary items so employees can maintain good hygiene practices.  Never touch your face with your hands.
  7. Make sure you have a clean work environment. Have a plan to ensure your business is cleaned regularly. You should be cleaning frequently touched surfaces and items several times a day. This may include phones, light switches, doorknobs, handrails, coffee pots, fridge handles, copy machines, to name a few. Use an EPA-registered household disinfectant. (https://www.epa.gov/pesticide-registration/list-n-disinfectants-use-against-sars-cov-2).
  8. Temperature Testing. Consider daily temperature testing for every person entering your buildings. If you do, make sure to clearly communicate this is going to happen, determine guidelines for administering, follow any rules outlined by OSHA, and, most importantly, be consistent with application. 

In this unprecedented time, we all need to remain diligent, ensuring our employees have a safe and healthy work environment. For more details and guidance check out the CDC’s website at https://www.cdc.gov/coronavirus/2019-ncov/index.html

Stay safe and healthy!

May 5, 2020

Economic Injury Disaster Loan (EIDL) Grant Update from SBA

The SBA on 4/13/20 started sending the below message to businesses that applied for the EIDL $10,000 Grant.  The SBA has changed the qualification that you can only get the grant if you have employees. 

On March 29, 2020, following the passage of the CARES Act, the SBA provided small business owners and non-profits impacted by COVID-19 with the opportunity to obtain up to a $10,000 Advance on their Economic Injury Disaster Loan (EIDL). The Advance is available as part of the full EIDL application and will be transferred into the account you provide shortly after your application is submitted. To ensure that the greatest number of applicants can receive assistance during this challenging time, the amount of your Advance will be determined by the number of your pre-disaster (i.e., as of January 31, 2020) employees. The Advance will provide $1,000 per employee up to a maximum of $10,000.

You may be eligible for another loan program, the Paycheck Protection Program, which is available through participating lenders. Below is a comparison of the two loan programs:

Paycheck Protection Program Full EIDL Loan
PURPOSE
Forgivable if used for payroll (minimum of 75% of the funds rceived) and the remaining for certain operating expenses (amount of any EIDL advance is not forgivable)

To meet financial obligations and operating expenses that could have been met had the disater not occured (amount of any EIDL advance is forgiven)
TERMS
Up to $10 million
1% interest Rate

Up to $2 million
3.75% for businesses
2.75% for non-profits

FORGIVABLE

YES

NO- EIDL Loan
YES_ EIDL Advance

MATURITY

2 years

30 years

FIRST PAYMENT DUE
Deferred 6 monthsDeferred 1 year

To locate a Paycheck Protection Program Lender, please visit: www.SBA.gov/PaycheckProtection. Information on available resources may be found at www.sba.gov/coronavirus. For more information on these services, please go to www.sba.gov/local-assistance to locate the email address and phone number for the nearest SBA district office and/or SBA’s resource partners.

April 14, 2020

Economic Impact Payments Being Automatically Distributed /IRS Launched Tool to Help Non-Filers Register

The IRS reminds taxpayers that Economic Impact Payments will be distributed automatically to most people starting this week. Eligible taxpayers who filed tax returns for 2019 or 2018 will receive the payments automatically. Automatic payments will also go in the near future to those people receiving Social Security retirement, survivors, disability (SDDI), or survivor benefits and Railroad Retirement benefits.

The Treasury Department and the Internal Revenue Service launched a new web tool Friday allowing quick registration for Economic Impact Payments for those who don’t normally file a tax return. This provides a free and easy option designed for people who don’t have a return filing obligation, including those with too little income to file.

Follow this link to the IRS website and click the blue button that says Non-Filers: Enter Payment Info Here.

https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here

Don’t hesitate to contact the Tax Team at Ketel Thorstenson, LLP with and of your tax related questions.

April 13, 2020

Families First Coronavirus Response Act – IRS Guidance on Tax Credit

The Families First Coronavirus Response Act (FFCRA) that went into effective on April 1, 2020, provides employers with less than 500 employees refundable tax credits that reimburse them, dollar-for-dollar, for the cost of providing paid sick leave and extended family medical leave wages to their employees for leave related to COVID-19.

The IRS has recently provided guidance on how employers can apply these tax credits.  The new guidance is available on the IRS website, click here.

The IRS guidance does outline a requirement for employers to obtain specific documentation from employees regarding the use of both the paid sick leave and the extended family medical leave.

The Department of Labor guidance recommends that employers require employees to submit a written request for either paid sick leave or extended family medical leave under the FFCRA.  The written request must include:

  • the employee’s name,
  • the date(s) for which the employee is requesting leave,
  • the reason related to COVID-19,
  • a statement providing written support of the reason, and
  • a statement from the employee that they are unable to work (in office and telework) due to the reason listed.

If an employee is requesting paid sick leave the employee must include the following with their request.

  • For a government quarantine or isolation, they must provide the name of the entity ordering the quarantine or isolation.
  • For self-quarantine because of a health-related concern, they must provide the name of the healthcare provider advising the employee or the individual the employee is caring for.
  • If they are taking care of an individual, they must provide the individual’s name and their relation to the employee.
  • If they are taking care of a child who is not in school/day care because of a closure they would provide the same information as requested for extended family leave (listed below).

If an employee is requesting extended family leave the employee must include the following with their request.

  • The name(s) of the child(ren),
  • The name(s) of the school(s) or daycare(s) that are closed or unavailable, and
  • A statement that no other individual can care for the child during the requested time.
April 6, 2020

Emergency Economic Injury Grants

Updated April 1, 2020
IF YOU HAVE NEVER READ AN EMAIL FROM KETEL THORSTENSON, LLP THIS IS ONE TO READ.


The CARES act signed into law on Friday March 27 includes $10 billion in funding to provide an advance of $10,000 to small businesses and nonprofits within three days of applying for an SBA economic injury disaster loan (EIDL). Even if you don’t want or need a loan, you can get the grant by applying for the loan. 


Eligible entities include any business with less than 500 employees AND which has been in business for one year.  This includes any sort of legal entity, including cooperatives, ESOPs or any individual operating as a sole proprietor during the covered period (January 31, 2020 to December 31, 2020). Private non-profits are also eligible for both grants and EIDLs.
Effectively anyone in this country who is in a small business is being handed $10,000 of tax free money. In South Dakota, for example this would include ranchers, hair stylists, cleaning service, mechanic shops. Literally any small business. If you own a rental house is that a business? That is unclear.  Apply and see what happens.


Get in line quick. It is first come first serve. EIDLs are loans of up to $2 million that carry interest rates up to 3.75% for companies and up to 2.75% for nonprofits, as well as principal and interest deferment for up to 4 years. The loans may be used for expenses that could have been met had the disaster not occurred, including payroll and other operating expenses.


The EIDL grant does not need to be repaid, even if the grantee is subsequently denied an EIDL. It may be used to provide paid sick leave to employees, maintain payroll, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments. At this time, there may or may not be forthcoming regulations that require to prove where you have spent the monies. We suggest you keep track of the use of the funds, even though that is not likely.


A business that receives an EIDL grant between January 31, 2020 and June 30, 2020, as a result of a COVID-19 disaster declaration, is also eligible to apply for a PPP loan. However, in either case, the emergency EIDL grant award of up to $10,000 would be subtracted from the amount forgiven in the PPP loan. See separate blogs on PPP loans.


How do I apply for the loan/grant? 

The PPP application needs to be completed by an SBA lender.

Any business owner or consultant working on behalf of the business owner can complete the EIDL loan application.  The application can be found here: https://covid19relief.sba.gov/#/

To assist you in completing and submitting the EIDL loan application, KTLLP has a dedicated team to assist you for a nominal fee. Please contact us should you need assistance. 

Act quickly and stay safe.

Our blog is being updated regularly with information on COVID-19 tax law changes. Please consider bookmarking the page.  

March 29, 2020

Useful COVID-19 Information

Together, we are facing a truly unprecedented situation. The global Coronavirus pandemic is affecting all of our families, our businesses, our communities, and our way of life. Below is a list of valuable resources that are available to you to help navigate through these trying times.

Loan Assistance:

  • U.S. Small Business Administration (SBA) offers flexible and useful lending programs—especially in times of crisis.

https://www.sba.gov/funding-programs/disaster-assistance

To qualify, your business or home must be in an affected area as stated by a disaster declaration at disasterloan.sba.gov.

Good to know information:

  • SBA (Small Business Administration): Coronavirus (COVID-19) Small Business Guidance & Loan Resources

https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources#section-header-4

  • CDC: Coronavirus Disease 2019 (COVID-19) – Interim Guidance for Businesses and Employers

https://www.cdc.gov/coronavirus/2019-ncov/community/guidance-business-response.html?CDC_AA_refVal=https%3A%2F%2Fwww.cdc.gov%2Fcoronavirus%2F2019-ncov%2Fspecific-groups%2Fguidance-business-response.htmlTo

  • Get local assistance – SBA Disaster Field Offices offer counseling and financial assistance to those who are rebuilding their businesses after disasters.

https://www.sba.gov/local-assistance

We will continue to update you on any new information that we come across that can be useful to you and your business. We are in this together and you can count on us to support your business today and for years to come. 

Sincerely,

The Ketel Thorstenson Team

March 27, 2020

DOL Guidance for Families First Coronavirus Response Act

The US Department of Labor (DOL) has issued its first official guidance for employers and employees about the Families First Coronavirus Response Act. 

The guidance does provide clarification on the effective date of the act.  It was previously assumed that the implementation date was April 2, 2020, however, according to the guidance the implementation date is April 1, 2020.

The DOL has set up a specific webpage fort he guidance, https://www.dol.gov/agencies/whd/pandemic.

As this is an ever-evolving situation please watch our website and social media for more updates.

March 25, 2020
News
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Reminder: Drop Box Details

Reminder: KT office lobbies are closed but documents can be dropped off using our drop boxes. If items are too large to fit the drop box please contact the front desk between the hours of 8 a.m. to 5 p.m. M-F (all offices), and 8 a.m. to noon on Sat. (Rapid City only).

PLEASE NOTE: all mail and dropped off documents will be quarantined for 48 hours. For quickest delivery use the electronic file transfer feature on the ktllp.cpa website, click the client portal button.

March 23, 2020

Important Notice- Tax Deadline Extended

The Secretary of the Treasury just tweeted that the tax deadline is July 15.

10:15 a.m.: Tax Day pushed back to July 15
Tax Day will be pushed back from April 15 to July 15, giving more Americans time to file and make payments without interest or penalties, Treasury Secretary Steven Mnuchin tweeted.

At @realDonaldTrump’s direction, we are moving Tax Day from April 15 to July 15. All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.
— Steven Mnuchin (@stevenmnuchin1) March 20, 2020

March 20, 2020