We hope that you, your families, and employees are all healthy and remain so throughout these uncertain times.
We have a lot of news to share and will be sending several informative emails this week. Please read them, because they should answer most of your questions.
This message addresses questions about layoffs and unemployment benefits.
Should I furlough (or lay off) my employees, or should I continue to pay them and take the tax credit?
We cannot
advise you on this situation. Your CPA may be better able to help you with this decision.
Will I be able to take advantage of the tax credit?
Clients who furlough employees will NOT be eligible for the tax credit. Businesses that take advantage of the FFCRP get a tax credit on the next Form 941 filing of 6.2% (your employer Social Security taxes). Employees still pay the same amount of taxes.
Do I need to notify PayPlus if I furlough or lay off employees?
You
MUST
notify us if employees are furloughed. Otherwise, salaried employees will continue to be paid.
How much can an employee collect in unemployment benefits?
Each state has different maximum benefits and different number of weeks that an employee can collect benefits. In NH the maximum is around $427/week. In MA it is closer to $800/week. We do not know how the states calculate the benefits.
How do I login to the state's unemployment website?
If you receive an email regarding correspondence, you need your UI (unemployment insurance) login to access this information. Most likely this correspondence is regarding the benefits your employees are receiving.
We DO NOT have your login information.
What do I need to do if my employees file for benefits in MA or NH?
Typically, you do not have to do anything, unless you are denying a claim.
If my employees file for unemployment, how will that affect my UI rates?
Will rates go up next year? We have no way of knowing, but typically yes, they do when an employee collects.
How do I get quarterly statements for my states unemployment division?
You do
NOT
need to provide those; the state already has them on file. PayPlus submits quarterly returns directly to the state on behalf of all of our clients. The 1Q2020 returns will be filed soon, after the quarter ends.
