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Level 1

small business help with and payroll during Covid 19

We have only 2 employees and one needs to stay home to take care of his son.  We have work for him so we told him to go on unemployment and we hired someone else for the interim. e can't afford to keep him on payroll and pay another employee to do his job.  Do we need to remove him from payroll or keep him active with no billable hours?  He still has a job with us as soon as he is able to come back? Do we need to apply for a waiver? Help

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Community Champion

small business help with and payroll during Covid 19

You can change the employee's status to inactive if you wish but if there are no paychecks generated in the month you should not be charged for an active employee with no pay.


I know that the bonus $600/week in unemployment benefits has made that option financially beneficial for many and in fact some businesses will have to document when a laid off employee refuses a written order to come back (and thus will jeopardize their UC benefits)


Due to the fact that your employee is at home taking care of a child may have qualified this leave for the FMLA leave and credit where you would have paid 2 weeks at full wages and 20 weeks at 2/3 pay all of which would be by deduction against your federal employment tax liability or by a refund in full from the government - essentially free money.  But by taking the leave pay the employee would be prohibited from receiving full unemployment benefits although they might qualify for a partial based on reduced pay.

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