President Trump signed a bill Saturday, July 4, 2020, to extend the Paycheck Protection Program (PPP) application window until Saturday, August 8, 2020.

Key Highlights:

Reduced Payroll Costs Requirement: The payroll expenditure requirement of the PPP dropped to 60% (was 75%).

Longer Covered Period: PPP borrowers can use the 24-week period to restore their workforce levels and wages to the pre-COVID-19 levels required for full forgiveness. This must be done by December 31, 2020 (was previously June 30, 2020).

What Happens If Some Employees Reject Your Offer To Come Back To Work?

Short answer: It is OK as it won’t affect your forgiveness levels, but you have to meet the following qualifications:

• You must have made a written offer to rehire in good faith (either through e-mail or a physical offer on paper).
• You must have offered to rehire for the same salary/wage and number of hours as before they were laid off.
• You must have documentation of the employee’s rejection of the offer (written documentation with the employee’s signature showing they rejected your offer).

You can also qualify for an exemption if any of these conditions apply to one of your employees:

• They were were fired for cause.
• They voluntarily resigned.
• They voluntarily requested and received a reduction in their hours.

Do You, Or Someone You Know, Want To Apply For A PPP Loan?

If you, or someone you know, have NOT applied for your SBA Paycheck Protection Program (PPP), you need to hurry as the new application deadline is August 8, 2020. The highlights are:

There is approximately $100 billion still remaining in PPP loan money from 5,461 lenders.

As of July 6, 2020, 4.8+ million loans have been made in both rounds of the PPP program; the total loan value exceeds $510 billion.

The average PPP loan amount is $114,000.

The COVID-19 pandemic is here, count on us!

Dear Valued Client:

Miami Payroll Center is committed to providing a safe and healthy environment for our employees and ensuring business continuity in service of our clients. We have implemented additional measures to ensure COVID-19 does not impact our ability to provide services and support your payroll/HR needs.

We’ve created this Miami Payroll Center_COVID-19 Information Resource Sheet for you to share with employees who may have questions about best practices for prevention and well being.

If you don’t already use our secure online portal to process payroll, contact us today to get set-up. Employees also have free access to a Self Service portal to view their information and access pay stubs. Please reach out if you need assistance getting them enrolled.

At this time we are awaiting any state updates related to unemployment or sick leave assistance that may be provided for businesses or employees due to COVID-19. We will do our best to relay any helpful information that may apply to our clients and their employees.

We will continue to monitor the situation as it evolves and will make adjustments to our plan accordingly to help keep everyone safe and healthy while continuing to provide support for your business.

Thank you again for partnering with Miami Payroll Center!

Today the U.S. Department of Labor announced a final rule to make 1.3 million American workers eligible for overtime pay under the Fair Labor Standards Act (FLSA).

“For the first time in over 15 years, America’s workers will have an update to overtime regulations that will put overtime pay into the pockets of more than a million working Americans,” Acting U.S. Secretary of Labor Patrick Pizzella said. “This rule brings a commonsense approach that offers consistency and certainty for employers as well as clarity and prosperity for American workers.”

“Today’s rule is a thoughtful product informed by public comment, listening sessions, and long-standing calculations,” Wage and Hour Division Administrator Cheryl Stanton remarked. “The Wage and Hour Division now turns to help employers comply and ensure that workers will be receiving their overtime pay.”

Continue Reading Here.

If you asked around the office for opinions on the current Presidential Election (Don’t! Nothing good will come of that!), the only thing everyone might agree on is that we can’t trust politicians. As the old saying goes, “Campaign promises are like marriage vows. They are made at the beginning…but are quickly forgotten” (Dick Gregory).

Political scientists have been studying campaign promises for almost 50 years, and the results are remarkably consistent. Most of the literature suggests that presidents make at least a “good faith” effort to keep an average of about two-thirds of their campaign promises.[1] If this research is correct, then the HR landscape may be in for some big changes regardless of who wins in November, starting with the issue of minimum wage. The federal minimum wage has been $7.25 an hour since 2009, and bills in Congress to change it have not been supported. This election, however, may be the deciding factor.

The Democrats have agreed to a party platform calling for a nationwide wage floor of $15 an hour.[2] Hillary Clinton’s website shows that the candidate doesn’t exactly agree with the party, but she does believe a hefty increase is in order. According to the site “At $7.25 per hour, the federal minimum wage isn’t nearly enough to make ends meet. Americans who work 40 hours per week at the minimum wage earn just $15,080 a year—below the poverty threshold for a family of two. That’s why Hillary wants to raise the federal minimum wage to $12 an hour—and why she supports city and state efforts to raise their own minimum wage even higher.[3]”

The GOP’s stance on the subject is pretty clear. According to the 2016 Republican Party Platform, “Minimum wage is an issue that should be handled at the state and local level.” The rationale behind this is that cities and municipalities have varying economies and, therefore, should be able to make their own laws concerning wages. Donald Trump has said that he would like to see “an increase of some magnitude,” but that the states should decide based on what businesses need to be competitive.[4] Then again, don’t put too much stock in what Donald Trump says, the candidate has been known to change positions on a whim and stretch the truth depending on his political needs on any given day [5].

Of course, minimum wage is not the only workforce issue that the two parties do not agree on. The Republican Platform has an entire section describing plans for the 21^st century workplace. However, until the Democratic Party Platform is finalized and published, we will not have a clear view of the differences between the two or what impact an election win by either side will have. If the research about campaign promises is correct, however, then a change in minimum wage is a very real possibility.

[1] http://fivethirtyeight.com/features/trust-us-politicians-keep-most-of-their-promises/

[2] http://graphics.wsj.com/elections/2016/donald-trump-hillary-clinton-on-the-economy/

[3] https://www.hillaryclinton.com/feed/middle-class-needs-raise-heres-how-hillary-clinton-plans-do-it/

[4] http://www.marketwatch.com/story/trump-let-states-decide-minimum-wage-sarah-palin-will-work-to-defeat-paul-ryan-revised-puerto-rico-bill-eyed-2016-05-09

[5] http://www.politifact.com/personalities/donald-trump/

According to Deloitte, many millennials around the world are planning near-term exits from their employers. Many have expressed their belief that businesses have few motivations beyond profit and they would prefer to place their own values ahead of organizational goals. For millennials searching for new employment opportunities, a good work/life balance is their top priority in any future career. The reputation of a company and its leaders is not considered important by young workers today.

You will find more statistics at Statista

by Niall McCarthy, May 12, 2016

For far too long many employers have subscribed to the popular notion that if we pay our employees enough, they’ll produce the outcomes we’re asking for. While this might have rung true at certain points during the last century, this thought process is long outdated. Recent research suggests that the happier the employees, the more likely they are to produce.

Last year economists at the University of Warwick found that “human happiness has large and positive causal effects on productivity.” Specifically, study data showed that employee happiness led to a 12% spike in productivity, while unhappy workers proved to be 10% less productive. This research was supported earlier this year by the Blackhawk Engagement Solutions’ Survey of Employed Americans which also concluded that happy employees are more productive than unhappy employees.

According to the Warwick study, companies that invest in employee support and satisfaction tend to succeed in generating happier workers. This suggests that compensation and financial awards are not enough. The Blackhawk study reported that employee rewards and recognition programs may not be aligned with what actually makes employees happy and more productive.

Enough about the research. What it boils down to is this: A great compensation and benefits package is only the beginning. So, if it’s not money that makes employees happy, then what will it take?

According to experts, a great place to start is to ensure that employees clearly understand your organization’s vision and goals. Experts suggest that aligning rewards and recognition with company strategy can lead to happier employees.

Next, be sure that employees have what they want and need to get the job done. Don’t assume that they are already equipped with all of the tools needed to succeed. Ask them about their jobs, the training they received, the support they receive from superiors and what tools they would like to use. Ask for input, and do it personally if possible.

As in most workplace issues, communication is key. Communicate regularly and be sure to tie your vision and goals into workplace happenings so that employees can see the larger picture. If they know how their positions tie into the larger goal, they are more likely to feel a sense of purpose and belonging.

Every business should have a way of recognizing employees and rewarding them for their hard work. In terms of keeping your employees happy, money isn’t everything. But it helps. While every job well done can’t be rewarded with a promotion or bonus, small financial incentives, such as gift cards, are effective motivators.

Lastly, it is important to note that employee happiness does depend a lot on intangibles: a feeling of belonging to the work team and feeling valued and appreciated consistently outrank money when employees are polled about job satisfaction.

Are you doing something creative or innovative to get the most out of your employees? If so, we’d love to hear from you- leave a comment below.

You may think the IRS pursues all taxes equally but they don’t. The IRS is especially vigorous in going after payroll taxes withheld from wages that are not promptly paid to the government. This is trust fund money that belongs to the government and was withheld from wages.

That makes any failure to pay—or even late payment—much worse. In fact, that’s so regardless of how or why the employer or its principals use the money. Using the money to pay suppliers and keep the business open isn’t a good reason in the IRS view.

When a tax shortfall occurs in this setting, the IRS will usually make personal assessments against all responsible persons who have ownership in or signature authority over the company and its payables. The IRS can assess a Trust Fund Recovery Assessment, also known as a 100-percent penalty, against every “responsible person” under Section 6672(a). You can be liable even if have no knowledge the IRS is not being paid.

Being being an officer or director can land you in the hot seat. If you’re a responsible person the IRS can pursue you personally for payroll taxes if the company fails to pay. The 100% penalty equals the taxes not collected. The penalty can be assessed against multiple responsible person, allowing IRS to pursue them all to see who coughs up the money first. Responsible means officers, directors, and anyone who makes decisions about who to pay or has check signing authority.

When multiple owners and signatories all face tax bills they generally squabble and do their best to sic the IRS on someone else. Factual nuances matter in this kind of mud-wrestling, but so do legal maneuvering and just plain savvy. One responsible person may get stuck while another who is even more guilty may get off scot-free.

Meanwhile, the government will still try to collect from the company that withheld on the wages. The IRS also wants to make sure this kind of bad tax situation doesn’t occur again. The government can move to shut down the business so the situation doesn’t get worse. In extreme cases the government may seek criminal penalties.

More commonly, the government may seek to enjoin this behavior. If the government thinks the situation is getting worse, it can seek an injunction. The idea is to stop the bleeding so the government gets its tax money. Where a business gets deeper and deeper into tax debts, the practice is sometimes referred to as pyramiding.

If a company is making minimal payments of tax debts, the IRS may try to induce voluntary compliance. In some cases, the Justice Department will seek an injunction to require timely deposits and payments of all withheld employment taxes and to timely file all employment tax returns. Whatever your situation, try to steer clear of these issues. Get help early.

For that matter, if you can, stay ahead of payroll taxes. Consider using a payroll service that doesn’t allow you the choice whether to use the payroll tax money for something else.

Originally on: http://www.forbes.com/sites/robertwood/2014/09/15/payroll-taxes-can-bring-irs-to-your-door-even-land-you-in-jail/