Employer Webinar – Updates about the CARES Act and unemployment Insurance Benefits

okay guys we’re going to go ahead and
get started my name is Ryan West I’m the deputy director for Iowa Workforce
Development thank you for joining us we got a lot I think we’re gonna have to
jam pack in here in this in this hour so I want to go ahead and get started
participants were just over a hundred it looks like so joining me today on the
call or some folks from banking and the credit union industries and I’ll let
them introduce themselves here as we get going
I have them on mute, Jessica you should be good to go Jeff I have you unmuted as
well was it sure if you if you wanted to what time you wanted to jump in here’s
how we’ll kind of go I think I’ll kick it off with the ten minute kind of
overview of where we are with stuff then I’ll pass it over to Jessica with the
credit union and then Jeff if you want to cover some stuff feel free as well if
that’s okay with everybody good okay good deal thanks Jeff so I don’t have a
PowerPoint for everybody today so if you’re seeing some odd things on your
screen that’s why this is the first time I’m doing zoom on my own so fingers
crossed ladies and gentlemen um some of you may have been on some of our
webinars before so thank you for joining us and if you’ve been on a previous one
to this so we’ll record this and we’ll put it back on the website we have
questions that have already come in and then looks like we have some coming in
through the chat go ahead and put those through the chat and then if I can’t
answer any of the unemployment insurance ones we’ll make sure to get those
answered and back out to everybody or at least put on our frequently asked
questions so I’m gonna go ahead and get started high-level so as most of you
know at this point I’m sure the cares Act bill that was passed almost two
weeks ago now we started to receive guidance late last week to help us as an
agency Iowa Workforce Development excuse me so what happens is when these bills
are passed at the federal level for unemployment insurance purposes then
they have to go through the Department of Labor the Department of Labor then
flushes out more of the details and really into the weeds and how we
actually make it work and so Iowa was like all the other states was kind of sitting
and waiting for that guidance. and we started to receive it late last
Thursday Friday and then actually all over the we all over this past weekend
as well so we have everything pretty much now to move forward and we’ve
started that process so no real secrets that came out of the original bill
through the guidance well let me kind of cover real quick so first thing is is
the FPUC right so get ready here for acronym heavy stuff guys okay so
this is the federal pandemic unemployment compensation right so this
is that $600 per week all right and what they’ve essentially
said was the $600 per week will be allowed for for anybody who’s basically
has who has any type of unemployment insurance claim which is what we kind of
thought and if you’re partial you still would qualify for it so that question
has come up a lot as well so essentially if you qualify for unemployment at $400
a week in theory you would get an additional $600 that’s $600 is paid for
out of the federal government so that’ll be reimbursed to us it’s not something
that comes out of the trust fund and affects you the employer so that that’s
a good thing now the other side of it is we are really stressing stressing and at
the guidance of the Department of Labor that you know we are not going to accept
people who want to quit their job or leave their job or whatever from their
job to try to get the $600 and so we’ll address those accordingly as we come
through them just remember as an employer when that individual files for
unemployment insurance you’re gonna get the Notice of Claim on that notice the
claim you’re going to want to put down if the individual obviously I’m assuming
most of you have probably been in this wall before we’re throwing out a notice
of claim but it’s just a piece of paper they’ll come out to you so you’re going
opening that to notice to notify you hey your employee John Smith or gene Smith
is for employment you’re going to want to put that part on there additionally
if your employer receives a loan under the Paycheck Protection Act which that
will get covered here later by a different group I am in no way a
paycheck protection expert and places you back on the payroll
full-time you will no longer be eligible for the unemployment FPUC benefits so I
know excuse me I know this has been a question that’s really come up from a
lot of the employers like from a standpoint of hey you know we don’t want
but our employees are telling us because they’re gonna try to leave to get this
money well that’s not gonna be allowable and so we want to that’s the first thing
we wanted to kind of to cover here now for those who are
eligible obviously that’s what it’s there for
okay just so you know as employers – one of the things we’re trying to really
stress here is you know there are plenty of employers and perhaps you’re some
of them who are who are trying to fill positions that kind of gets lost in this
thing which is you know for all the employers who are kind of dealing with
this real hardship you know there are employers who are on the other side of
it who who are trying to fill positions and so trying to balance that where
employees or if if business is shut down for any significant period, you know trying to get
those folks into other work or something we’re trying to push for as well okay so
that’s the FPUC part, that’s the $600 right we’re the goal were shooting for
as that money would be paid out by starting next Friday I think that’s the
17th and most this information came out in the press release that was released
yesterday morning so the other part of it is is the PUA so that’s the
pandemic unemployment assistance what that basically is is that’s that pot of
money that’s set up for those individual employers self-employed independent
contractors nonprofit employees gig employers who are not qualified for a
normal unemployment insurance claim because they don’t have earned wages so
remember on employments based on what your wages you’ve earned from your
employer and so same thing here so this this fund of money this pot of money
excuse me I set up for that group I know we’ve had a lot of questions on that I
think some questions come in earlier today already on that one as well but
that’s ready or that’s being put together now so our goal there was
ideally I believe we stated ideally by next Friday
money’s going out on that I think we had 10 days listed actually so I think that
was the 17th we had something similar we have something similar similar to this
in place so we don’t have to luckily rebuild it but you know remember when we
get all this guidance we have to we have to then go make it all work so you’re
you know you’re taking this plan and then you got to go put it make it
essentially work in a fast quick time period with technology who doesn’t
always line up with all this stuff so that part of it I really want to push
everybody and a lot of these questions were going to get I want to push you to
our website because we’re continually updating this and I’ll get to the
website stuff in a minute that’s where you’re going to be able to see what
information you need to submit what’s gonna be required if you didn’t if you
haven’t filed your taxes for 2019 which I know this can be a lot of people and
so but that’s what that group is for so PUA is like DUA in a sense DUA is
disaster unemployment assistance the reason I want to tell you this is
because it can kind of get confusing so PUA the place of DUA for this
pandemic that we’re under and DUA is like when we have a tornado in the state
or a flood you know are some type of natural disaster we can have a
declaration of disaster unemployment insurance or DUA or assistance excuse me
or DUA as we commonly refer to it has to be declared by the president and and DUA got passed in the state of Iowa there’s three forms of it but it
didn’t get passed for the unemployment insurance part but that got picked up
under this PUA, so if you got questions or you’re hearing people say well what
about DUA as well well that that’s covered in this one so you’re gonna want
to find the guidance out there on the website there is a lot of guidance on
this one we received a lot of detailed information over the weekend that we’re
combing through and making sure we’re correct on the other one is PEUC you see
which is the pandemic of emergency unemployment compensation let me say
that again I’m talking way too fast I apologize that’s PEUC pandemic
emergency unemployment compensation and what this one does is allow up to
thirteen weeks of unemployment insurance benefits after people have exhausted
their benefits so for you employers perhaps perhaps you
were maybe drawing unemployment during the recession but we had EUC in place so
drop the P and there was several different forms of it and back then when
we were administering that it was kind of uncharted turn so we hadn’t really
done it a lot before that so we learned a lot in that last round I was here
during that time about ten years ago and so we have a lot of that in place that
the schematics to put it together what that basically means is is that after
you draw your 26 weeks of unemployment so if you go on PUA let’s say right
you’re a small small business and by small business I just mean in theory
yours you’re defined as a small business you
get on unemployment you draw it out for 26 weeks you would then be eligible for PEUC
which is an additional 13 weeks of unemployment surance that one goes to
the end of 2020 so will it be extended you know who knows
hopefully we’re well moving on from this in the next several weeks but again I’m
not a at liberty to really give my expertise on that because I certainly
don’t know so those are really the main three the paycheck protection program
that is not a workforce development there’s some confusion on that but we
have the experts on that can you know answer that and I’ll turn that over to them
here in just a few seconds then we can go to questions but one of the things on
the FPUC money so that money is good until or is paid out until the week
ending July 25th of this year okay and it started essentially this past Sunday
March 29th I’m sorry last Sunday two weeks ago which would have been the 29th
that makes any sense there so that’s kind of a timeframe on it
the PUA is good till the end of the year I believe it’s December 26 2020 so
the extended EUC and the PUA out to the end of the year which makes sense and
then the $600 which is essentially a way to you know to get money in the
community in the economy and that’s really what unemployment insurance in a
nutshell is designed to do it’s designed to help short-term relief in the times
of disasters and so high level that’s where we are I know there will be
questions that come up with that I seen coming out already what I’d like to do
now is turn it over to Jessica and she’s with the division of credit union and
Jessica I’ll let you title and all that I don’t want to screw that thank you for
making time and please by all means jump in and kind of cover what you want and I
can pull up or share a screen if you want me to on that link you said just
let me know.- Ryan can you confirm you can hear me
respond perfect okay my name is Jessica Palmyra and the attorney and the
executive officer for the Iowa Division of credit unions and with me today are
Katie Avril the superintendent of credit unions for the state of Iowa and Jeff
Slagee the superintendent for banking for the state of Iowa and the division
of credit unions regulates 83 Iowa state chartered credit union and the decision
of banking regulates all of the state and community banks as well as
additional lenders and we’re here today to talk about the paycheck protection
program under the CARES Act administered by the Small Business Administration
with input specifically from the US Treasury before I move on Katie or Jeff
would you like to say anything go ahead no just perfect okay so to start out I
am an attorney but we are not here to provide legal advice to you the Iowa
Division of credit unions and the Iowa Division of banking are going to provide
a basic overview of the PPT program or paycheck protection program we are not
with the FDA or the Treasury and therefore we do not have legal authority
to interpret what the CARES act or the interim final rule say we can only
explain the rules as they are written and offer our understanding based on our
expertise we will not provide legal advice and you are encouraged to do your
own due diligence prior to applying for a PPP loan sending the funds of a PPP
loan or applying for forgiveness so the paychecks protection program is part of
the SBA section 7 a loans it’s an expansion of what already exists and
what specifically was expanded under the PPP programs are who can qualify how
much you can borrow how you can spend those funds and what forgiveness is
available to you I think on the screen is guidance that
our office the Credit Union Division drafted for our lenders but it’s publicly
available from our website and you can review it as a you find it to be helpful
so specifically for these loans and borrowers include small businesses 501c3
designated nonprofit veterans organizations under 501c 19 tribal
businesses self proprietors and independent contractors these loans are
to help businesses continue to make payroll check for paycheck protection
for their employees the help offset laid off employees or concerns due to cash
flow from the individual businesses there are small business caps
specifically 500 or less employees in a physical location however there are
exceptions to that and those can be found through the SBA website we can
provide some guidance but this is a high level overview
additionally some affiliation and franchise rules will apply to those
borrowers these loans were available as of April
3rd for everyone other than independent contractors and sole proprietors it’s my
understanding that they can apply as of April 10th the limit for these loans is
two and a half times a business’s payroll cost average monthly payroll
cost average monthly payroll is determined based on the 2019 calendar
year and essentially you just add up all of your payroll costs divided them by 12
to get your average monthly and then multiply that by the two and a half
percent there are exclusions as to what does not constitute payroll specifically
anyone who is paid more than $100,000 annually either as an independent
contractor employee or sole proprietor and using above that $100,000 cap will
not count as well as any sort of employee
benefit qualified sick and Family leave which is credited somewhere else under
the families first coronavirus response act and federal employment taxes which
are imposed and withheld between February 15th and June 30th that’s
specifically for the employers share not the employee shares the employees share
would still be covered and any employee who resides outside of the United States
would not be covered under this program once you have received your funds based
on your two and a half times your average monthly payroll cost or ten
million dollars whichever is higher you can use those funds but only as
specified under the cares act with the information provided by the US Treasury
in the SBA I should note for you that in this
particular environment the rules provided by SBA and Treasury are interim
meaning they are not final they are effective as if they are final rules now
but they are open for public comments and they will not actually become final
until after that public comment serious which means many of these things could
change and we don’t know what those are yet which is why everything needs to be
taken with your own eye towards due diligence you need to research your own
applicability and whether or not you are eligible even if you are eligible of a
small business there are some additional exclusions under the interim final rule
that should definitely be considered once you have received your funds you
can use your PPP distributed those funds for payroll support including employee
salaries paid sick and medical leave insurance premiums mortgage interest
payments on a mortgage that existed before February 15 2020 ,rent utility
payments and interest on other debt obligations however at least 75% of the
distributed funds must be used for payroll costs this is in
the interim rule it’s not in the CARES Act, but it’s very important
75% must be used for payroll cost and failure to do that will most likely
eliminate the forgiveness opportunity which we’ll talk about next
for PPP loans you can have the option to get up to the full principal amount of
your loan forgiven after eight weeks the way this works is after the loan is
distributed eight weeks following you calculate the amount that was spent on
the usable approved uses determine that amount and submit that
for application your forgiveness is limited to those eight weeks and that
75% of payroll costs is still applied you cannot exceed the principle of the
loan or forgiveness anything that is remaining after the
forgiveness calluses and reduced will be subject to a 1% interest rate and a loan
maturity of two years so 1% interest rate and two years for repayment the
loan payments themselves are deferred automatically for six months and that
the lenders option can be extended for one year there is a limit of one PPP
loan per eligible borrower there are no collateral or personal
guarantee requirements from the borrower the borrower’s themselves are required
to determine their own eligibility and whether or not the franchise and
affiliation rules apply to them as well as determined their own eligible
forgiveness amount forgiveness will be reduced based on the reduction in
employees that are employed by the borrower’s and/or reduction on pay
however if you’ve already laid off employees I mean you bring them back
after the PPP program goes into effect you can get your reduction reduced, so you
would be able to go back up to an amount of forgiveness but you would have been
otherwise eligible for had you not had to layoff those employees and that’s
going to be compared to your prior year’s employment so those are the very
high level point all of that is very complicated it’s a complex system we
encourage you to review the interim rule and we’re happy to answer as many
questions as you can these are first come first serve loans
and you will apply directly to your lending institution a bank a credit union
there are alternative lending options through SBA but the PPP loans
specifically are going to do through a bank or a credit union or another
lending institution okay Ryan that was a very high level
view overview but it was still a lot of information we’re happy to take
questions okay I’m sorry Thank You Jessica Katie did you have something you
want to add I’m sorry I’ll keep working on that Jeff is there anything else
you’d like to add yeah I just just a few comments so you know if you look at the
statistics in Iowa there’s about 60,000 small businesses that would fall under
the 500 employee rule so it’s it’s a pretty vast field
there’s about 270 banks in Iowa Katie can give you the number of Iowa and so
this program as Jess said started last Friday it’s off to a bit of a rough
start just because there’s so much coming at SBA so fast and the Treasury
is involved in making the rules that so you may be seeing some reports about
kind of the rough start but I just remind everybody that it a program of
this size and scale is going to take a little time to find its footing in fact
they made they approved more loans over the weekend then the entire 7a program
approved in 2019 so even though it’s been a bit rough
it is off to a start and there and they’re moving along through the process
right now most of the loans being sent in and approved are just that they’re
sent in and approved they have not been funded yet and part of that is because
as we’re still waiting for SBA’s final rules for closing and funding the loans
it was supposed to come out last night it has not come out yet
having not seen it today yet either but we’re hoping within the today or
tomorrow that those rules will come out and then those loans that have been
already approved can be funded there’s as we said earlier there’s 349 billion
dollars that has been allocated to this program Congress already started talking
today about additional 200 to 250 million dollars and so obviously
Congress is very committed to try to make this work for as many small
businesses is out there and in the last comment I’d make is the one that Jess
ended with it is absolutely best to start with the financial institution
where you bank it will simplify the process it will simplify the application because
you’re already on record with your with your financial institution and so start
there and then go from there if they want if your financial institution isn’t
going to do it you may need to try to find another option in some cases your
financial institution is trying to get on board with the program and may just
need a few days to to get fully set up with SBA oh that would be my comments
Ryan okay perfect thank you sounds like you guys got your hands full for sure
Katie I’m going to try to make you a host here and let’s see if we can get you to talk so we can hear you here so see okay Katy see if that will help you
now mm-hmm okay I don’t think we’re having a
…in the chat she said she’s nothing to add okay thank you sorry
about that if I could get we have a few people who are there cameras on can you
turn your cameras off please let me go in and turn those off and then I’ll go
ahead and go into questions so what I’m gonna do that Katie thank you I’m gonna
go ahead and go into the questions first of all Jessica thinking thank you for
that presentation and Jeff thank you as well you turn off this camera I’m all if
you’re I’ve been going and shut off cameras for me too
that way we cannot that way we won’t steal this background stuff guys I
apologize so let me go into the first question here actually I’m just going to okay so I’m gonna go and go to the first
question it looks like looks like the first ones we got or for UI for the
most part which is okay that’s primarily what we thought we would get coming in
early so let me go ahead and, right so the first question we got here our
business…our business was a mandatory shutdown back on March 17th I
see now that there is new separation region code for virus for us to select
that was not there when we responded to the bulk of the notifications I did but
in the comments it was COVID 19 related shutdown essentially do I need
to go back into all 200 responses in change of separation reason code no you
do not that was something we got we’ll added in after the fact so you don’t
need to worry about that next question based on IWD Q&A claimants
are eligible for state unemployment if they fear contracting COVID 19 this
means they will also receive the cares Act $600 a week for unemployment the result is many workers will now earn more by not working and will severely
impact those employers considered as essential infrastructure
is this impact on essential employers a consideration with confirming or denying
UI benefits so that’s not something we can we can specifically make its based
off the situation so as I kind of stated earlier
our agency along with all unemployment insurance agencies are finally following
the guidance of the Department of Labor which is people should not be leaving
their jobs to try to claim the extra $600 when you notify us of that we
should address that accordingly and move through those so that’s a good question
but I think we have official guidance we’re making sure that we’re following
those rules is there put out which is we want to keep people in the workforce if
at all possible and we don’t want them leaving to try to claim money and not
work for self-employed filers who filed March 28 and submitted their 1099 to
the UI claims help inbox and reference their claim number and contact
information will you be processing that information or requiring them to submit
this information again I do not believe so no, that information should all be
in there let me get back to you on that one the other part of it is are you
taking annual earnings divided this by four to calculate the highest corner
earnings I believe so we’re we’re working through that guidance now we had
a real big reference sheet come out to us over the weekend specifically on that
one that’s in reference to that PUA section which are those employers who
are going to qualify under them circumstances where they’re
self-employed so first part I’ll check on the second part I believe you are
correct I don’t know how we’re calculating the tax return a tax return
Schedule C that information will be out on the website so all of these
individual separate buckets so the the FPUC the PUA they’re all going to have
their individual page on our workforce Iowa Workforce Development.gov and so
those should be up this week if not by the end of today so I really would
encourage everybody to go out there and check those because that will that will
allow you to really get more in-depth information so that we can keep that
stuff going and so you can see with the latest and greatest are on that so we’re
working through that we should have those questions the answers to those
questions out there today how does the reduction of hours of salary rather than
a complete layoff effect the unemployment calculation
how does it affect a $600 so technically they would be eligible for the $600 per
week reduction in staff or result I’m sorry
reduction in hours simply means that we use a formula and so after $100 of
earned wages in the week it’s a dollar-for-dollar reduction so let’s say
you’re making $250 hypothetically most likely as assuming you qualified under
the normal regular circumstances you would probably get roughly $225 an
unemployment surance give or take so that’s how it affects that it cuts that
basically in half anybody that’s working through the week and claiming
unemployment insurance they’re on a partial layoff most important thing for
those individuals is that they report their wages when they when they they do
their weekly claim on Sunday I’m curious if anything is changing with the
CARES Act otherwise during the COVID 19 timeframe as it relates to unemployment
eligibility for students student employees who work on campus in connection with their
enrollment as a student in some cases positions in laboratories etc are not
available due to COVID-19 yeah normally under unemployment is not
covered employment for employment purposes
yeah that’s changed so if they have covered wages they should file one of
the questions that has come up a lot or for those individuals who work in
education for those of you don’t know a teachers they’re not technically
eligible to claim unemployment during the summer hours so they’re set up but
that’s kind of been removed as we’re in this kind of unusual period so I would
suggest they just file for the claim most likely they would qualify under
one of the packages that are out there I have one employee currently on a second
week of unemployment we have a total of nine employees, we have more employees
wanting to take layoffs now due to receiving the additional $600 is
everyone who claims unemployment due to COVID 19 get the additional 600 well if
they’re qualified they would again though we don’t want people to leave
just to try to get the $600 so this kind of a two-party answer yes
the I believe the guidance is written that if you’re claiming if you’re
essentially getting any partial unemployment payment you would be
eligible for the $600 however again we’re not encouraging people to do that
Jessica this one’s for you also do you know if we are
to the paycheck I’m sorry let me rephrase that also do you know if we are
applying for the Paycheck protection program if we would need to hire the
employee who is on the unemployment back in order to qualify for that I don’t
know that the restriction or the reduction in forgiveness requires you to
hire the exact employee back but in order to prevent your forgiveness amount
from being reduced due to a reduction in your workforce you would need to bring
someone back on to make sure that you meet the 25 no more than 25% reduction
amount whether have to be the same employee I do not know. okay all right
next question I am helping out with nonprofit that elected to pay claims as
they were submitted rather to be insured I understand that there is a that their
account will not be charged for a period of time can you tell me how long will
the exemption continue all the organizations recent layoffs have been a
result of being shut down due to COVID 19 is there any possibility that
those who opted out to pay back and earlier than January 1 2021 this is a
really long question so let me start with the first part how long will the
exemption continue so these folks would continue under the PUA situation or
a bucket of money and that goes to the end of the year all of the organization
recent layoffs have been a result of be shut down due to COVID 19 is there any
possibility that those who opted out came opt back in
earlier than 20.. I’m not sure I’m following that question all the way so
what I’ll do here is get I will get a better response to this one and we’ll
get the answer back out there today so a good question it’s a longer one I want
to make sure I have all the right answers on it so those are the questions
that came in before now let me read the questions that have come in now so I’m
having some technical difficulties here guys let me let me go to my phone here
and I’ll pull these up okay so our business was on a mandatory
shutdown back on March 17 I see now there’s a news…okay already read oh I’m
sorry where that one that one that one I’ll get back to if schools are
continuing to pay all our hourly employees through April 30th what
paperwork do we need to IWD to stop employees from making unemployment
claims yeah so when you get that notice to claim you just need to send that in
to us if you haven’t done that already I’m assuming maybe you have that will
and on that notice the claim just right on there on the situation that you guys
are in on that and if you have further questions on that let us know but that’s
the the first step so we know that you’re still paying these and the
employees in theory should be reporting those wages on their unemployment
insurance claim when they called it when they claim their weekly claim as well
does the person on partial unemployment who is working minimal hours still get
the 600 other week the clicker yeah they will again though what the regular
unemployment insurance will be is based on what their hourly wages are per week
does the person have to excuse me does a person have to have earned a minimum of
two $2,500 and the previous 18 months to be eligible for COVID related
unemployment so so essentially for a normal unemployment insurance claim we
look at the last 18 months that’s what we call the base period and in that 18
months we break it up by quarters and so you have to have at least two quarters
of qualifying wages one quarter has to be at least 1660 the other quarter has
to be I believe $830 where you get that $2,500 whatever that whatever
that 830 plus the 1660 gives you the 2500
remember left top my head but that’s what would qualify you for a normal
regular unemployment insurance claim and that would be most likely for the
minimum amount assuming everything went through which is $87 a week if you don’t
have those wages there are other qualifying ways one of them being
through PUA which again is designed for anybody who is self-employed and/or
does not have qualifying wages in any other outlet so I would suggest that
individual file to see where the ball dropped so to speak good question
potentially yes they would still qualify in other areas and you know it’s really
up to the to getting the claim on the system to determine that do you qualify
for the extra $600 if you’re in the vsw program which is our voluntary shared
work program you do if everybody got a copy of that press release that went out
on Monday it’s out on our website our Workforce Development gov if you haven’t
seen that but the $600 is essentially for anybody who is filing a
really unemployment insurance claim under the Sun for lack of a better term
so vsw or voluntary shared work would be there now one thing to remember I think
we have it worded in the in the press releases STC or short-term compensation
we call it voluntary shared work here in the state of Iowa it’s the same thing
though okay next question if an employee is terminated for performance applies
for upon employment will they qualify for FPUC or $600 so you know you can
get unemployment if you’re terminated terminated you can get unemployment if
you quit every scenario is different I would suggest that you as an employer
just need to protest that which I’m assuming you are if they are qualified
for the unemployment insurance then in theory yes they would get it however you
would have to go through a fact-finding interview remember quits and discharges
automatically should generate a fact-finding interview which would have
to be completed then of course it can go to Appeals from there but in theory
that’s open to interpretation based on what the outcome of the actual
fact-finding would be or if the employer doesn’t protest or participate on the
fact phone you got a lot of variables in there but if they would qualify if they
would so let’s say they the employer protest they have a fact finding
finding an employer doesn’t win on that side right then yes the employee would
get the $600 if a county has to close due to COVID 19
if employees go to unemployment will the county be charged back for the
claims at 100% 50% I’ve heard conflicting information yeah so government
entities is at 50% and that information should be out on the website now that’s
a good question it is confusing there’s a lot of conflicting information out
there but reimbursables all in that ballpark I don’t have the exact verbiage
off the top of my head on that but it is listed out on the website and if it’s
not I’ll check when we’re done here I’ll make sure that it’s out there but and
the guidance we received last week I believe that was at 50% if the 500
employees threshold under that okay here’s one for you Jess and/or team
if the 500 is the $500 is the 500 employee threshold under the PPP based
on 2020 employee count or 2019 employee count is it based on actively at work
employees or do you include furlough employees in that count — I believe that
it’s based on a 2020 counts but it will be compared to the 2019 count to
determine whether a reduction in forgiveness is going to be applied and
it depends regarding furloughed as to whether or not they’re still being paid
they’re not being paid then they’re not going to count but if they are being
paid they may still count.– okay deal if someone owns more than one business
can each business apply for the Paycheck protection program — yes I believe it’s
based on business not necessarily based on owner unless it’s a solely owned or
wholly owned there are ownership rule caps set forth in the interim rule and
in the guidance and so I would encourage you to go check to make sure that you
are not violating that but as long as you’re not outside of those caps
multiple businesses should be able to apply okay really one thing I would add
to that check the affiliate rules really for
somebody that may prevent double up depending on the ownership percentage
Also the franchise rule — great okay good deal next question does the $600
per week cares supplement apply to part-time reductions we have some
information the employees would get 300 that that does does not change, it’s $600
for all of them, there’s no reduction in that I mean good question I know that
part-time ones kind of been a little confusing okay here’s one for you guys
as well owners of partnerships and limited liability companies sometimes
compensate themselves through profits distributions rather than salary are
such distributions payroll costs for purposes of determining the maximum loan
amount and the amount of the loan that may be forgiven and I can read that
again — ok go ahead Jess and I’ll fill in — the interim rules about what
payroll can cost consists of specifically salary wages Commission’s
or similar compensation including cash tips or the equivalent so my
interpretation is that it’s a little bit unclear but I would think no I Jeff what
is your interpretation of that I think if you could really produce bank records
you may have a shot at it but I think Jess is right I think it’s going to be
you really have to be able to prove up payroll rules and so if you look at that
and in over a period of a year of what your average payroll is I’m not quite
sure how that’s all going to tie into what would be considered approved
payroll so I think it’s going to be a be a hard sell okay next one here is looks like we have do employers who enter into voluntary
shared work agreement have to reimburse for UI payments made by the state we
understand under s point two one zero eight they do not we are reimbursable
there yeah so you’re under the voluntary shared work program which we’re
encouraging employers if you take part in if it fits what you’re doing then
those are paid by by the feds yeah and that information I believe has
been updated out on the website so you are correct in your question you do not
have to let’s see here next one if an employer is advised to self isolate
because of medical conditions are they eligible for unemployment they are we
are reading conflicting answers we have we have work available but the doctor
has written them off yeah so if they have a doctor essentially if they have a
doctor’s note they’re going to be covered I think is the best way to put
it you know obviously every scenario is unique I know I sound like a broken
record and I say that you guys but you know I got a just so we’re I’m you know
not getting too detailed into each situation that’s something obviously
you’d probably need to address with the employee but from a standpoint of an
employee has been eligible based on a doctor’s advice and yeah they would
qualify which section of the 1040 tax return do we include with the PUA so I
don’t know that right off the top of my head that’s a very good question that’ll
be out on the website if it’s not already today under the PUA tab so go
out and check that if you don’t mind I don’t want to give you bad information
on that very good question for workers who have been reduced under voluntary
shared work agreement are getting 50 percent of wages from the employer are
those wages taken into account when they reduce the UIWBA into the current rules I
don’t know if are those wages taken into account when they reduce the UIWBA
under the current rules no I don’t believe so I’m gonna come back to that
one let me get a better answer on that one that’s a good question as well under
the voluntary share work program we understand you have to reduce those
hours for all those in a work unit by the same percentage or same percent you
have to reduce all in a worker unit or can some be kept in full-time what is
the work unit again that’s gonna be on on our website I don’t need to again so
I’m like a broken record but there’s a lot of voluntary shared work information
I really want to direct everybody out to that on our website so you can get those
in from those see that information we’ve had these some of these questions come
up before so go out there and see if you can find your answers and I will do the
same as soon as we get off the call making notes as we go if an owner
officer making over 100,000 a year goes half furlough is he or she paid on
employment as if he were earning 100,000 will there be back pay for the
additional $600 okay so owner officers if they’re reporting
wages on themselves under the letter of the law you can file for unemployment
insurance and we consider furlough and layoffs is the same thing from
unemployment insurance purposes so that’s the first part is he or she
unemployed as if they were earning a hundred thousand so really it’s it’s
it’s based on your wages so to answer that question when you file your claim
you would get a monetary statement that tells you which are going to be
qualified for so we have a cap so I believe it’s about ten thousand a quarter
so if you have two quarters of earned wages at $10,000 a piece most likely don’t
quote me here we give or take you’re gonna qualify for the maximum claim the
maximum claim in the state of iowa’s 591 dollars per week that’s with four
dependents so in Iowa you can claim up to four dependents so yeah
it’s it’s it’s certainly possible you would qualify for a full unemployment
insurance claim by half furlough if you’re meaning if you’re gonna drop the
part-time then you would want to report your wages and it’s possible they would
negate what you could earn from employment during the week so a couple
different ways you can look at that one will there be bad pay for the additional
$600 it will not be back pay starts when you get your claim filed and it started
as of March 29th so if you file your claim today your claim would be
effective this previous Sunday that’s when it would that’s when it would start
there was a earlier web bar kind of door I’m sorry there was an earlier webinar
comment suggesting employers under PPP may not be exempt from UIbenefit
charges can you clarify please Jessica was that you forgive me I’m not sure
I’ll clarify it from my end and then you can clarify and determine if it needs
more so what I said is when determining your payroll cost to determine your
monthly average which then determines your total amount you can borrow
qualified sick and family leave wages for which a credit is allowed under the
families first coronavirus response act will not qualify as payroll cost and I
believe that’s the only comment that I made no thank you and I I read something was
in her press release that may be part of the – so it was additionally if your
employer receives a loan under the Paycheck Protection Act and places you
back on the payroll so this is it from a claimants point of view all right so let
me start that over additionally if your employer receives a loan under the
Paycheck Protection Act and places you back on the payroll full time you will
no longer be eligible for unemployment or FPUC benefits which is that
additional $600 I’m wonder if that’s where it came from – I hope that answers
that one if an employer a large employer needs to work it reduced schedule to
care for children affected by school closures is this unemployed qualify for
unemployment yes they do just to clarify when staff applies for unemployment they
file their claim at the end of the unemployment week yes so you’re gonna file your
initial claim so it claims did for one year and so you let’s say you file your
initial claim today or your new claim right same thing you then would have to
claim a weekly claim every every weekend all right we we want people to do that
on Sunday so Sunday your claim for the week that just happened Monday
through Saturday so this Sunday when you claim your week it would be for this
week that we’re in right now it’s the wages that you earns throughout
the week so it’s a good question again it’s it’s not as sometimes it can be
made out to be more confusing than it needs to be but that’s how it’s really
set up in every state now some states for one week two week a little different
but that’s how we do in the state of Iowa we want you to do that online as
well if an employee was already off on unemployment due to no child care prior
to FFCRA going into effect can they opt to stay on unemployment rather
than get the paid sick leave and paid FMLA that’s a tricky one I don’t know if
I have the answer for that right now Stephanie I think I have you muted I’m
not sure she may know that Stephanie Callahan’s on as well this is well from an
attorney standpoint I don’t want to put her on the spot thought the last minute
I’ll get back on this answer let me find out on that one um so we’re gonna we’ve
had a lot of questions come in and in we’re running close to time here and I
want to not only our partners who have joined us on here today I’m just going
to do two more questions and then we’ll go ahead and go back and answer these
will shift the ones that go to our partner group to them and then we’ll
make sure that we can get them addressed and out there does the county hospital
need to reimburse 50 percent of the FPUC they sent a weekly benefit yes so
there’s six hundred dollars is not don’t you don’t have to worry about that
that’s paid directly out of the feds and there’s no reimbursing from the employer
on that one if an employee has to be off work due to a lack of childcare because
of COVID 19 and school closures is that individual eligible for unemployment yes
they are and they would be eligible for the $600 as well that was the second
part please provide details on employer submission of vsw data a school district
is continuing to pay food service staff 100 percent of their pay for reduced
hours and they are okay this is a long one I’m going to read this one then
we’ll end on this one a school district is continuing to pay food service staff
100% to pay for reduced hours and they are to
be able and available an employee has a doctor’s note to excuse them due to the
COVID19 a reason so they are now eligible to choose unemployment that
would be correct what is the district’s responsibility to
continue to pay if they aren’t able and available so they would be eligible for
unemployment insurance I think what you’re asking is what is the district’s
responsibilities it can continue to to pay your staff so they would be off on
layoffs so depending on what your policy is you know when somebody goes on layoff
typically they’re not paid usually unless they’re like under the voluntary
shared work program or we have a dual thing there but they would need to file
for unemployment if they have that excuse note they certainly can okay so
on that note we’re coming into a close here I want to thank everybody for being
on I know there’s a lot more questions that are still oh we don’t have too many
more I guess maybe one more Molly I think this is just just the last one
maybe I was reading this wrong does an employee
count matter for unemployment for extended FMLA it’s 500 or less yeah I’m
not sure I know what that one means let me do some more deep diving on that one
we’ll take a look at it so I think we’ve got them always helping leave the
questions for those of you don’t wonder who won’t keep referring to Molly yes
when will we get our extra $600 will we get $600 payments for the week of the 29th and this last Sunday so we’re hoping that money comes through
next Friday the 17th that’s the goal and in theory yeah you get two weeks that’s
correct I believe that’s how that’s working so good question so I think
that’s actually all the questions I’ll end on that note I got some homework I gotta do here to respond to some of these others William I saw you just
put a question and I’ll get the answer with that once I get back to you so I
want to thank our guests for coming on thank you very much for following us on
these webinars this one obviously has been recorded thank you for my technical
difficulties some of this will get it posted to the website and
get a copy to the banking and credit unit as well so they can do put it on
their stuff if they will as well so that’s it everybody thank you

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