April 4, 2020 Employee Management en_US You already know who you want on your team, so here are a few steps to help you rehire your employees, get them back on payroll, and get back to work. https://quickbooks.intuit.com/cas/dam/IMAGE/A9z4kLY8E/rehire-employees-paycheck-protection-program.jpg https://quickbooks.intuit.com/r/employee-management/how-to-rehire-employees/ How to rehire employees laid off due to the coronavirus
Employee Management

How to rehire employees laid off due to the coronavirus

By Myranda Mondry April 4, 2020

Editor’s note: Regulations and guidance from the SBA and the U.S. Department of Treasury on the PPP are evolving rapidly. Please refer to the latest guidance from SBA and Treasury to confirm current program rules and how they apply to your particular situation.

In March, the United States experienced a record-breaking number of unemployment claims—over 10 million in total. If you had to make the difficult decision to let employees go due to the coronavirus, you’re not alone.

For many business owners, the Paycheck Protection Program (PPP) may provide some relief. The PPP is designed to help small businesses and others retain and rehire their employees and maintain business operations. PPP loans may even be forgivable, in whole or in part, if borrowers meet certain requirements.

Business owners may be eligible for PPP loans if they’ve already laid off their workers due to the coronavirus. These business owners must rehire employees and restore their pay as of February 15, 2020, before December 31, 2020, or before the date they submit their loan forgiveness application, whichever comes first. The rehiring process can be a bit intimidating. Fortunately, you get to skip the hardest part: finding qualified workers. Here are four steps to help you get employees back on the payroll.

1. Consult an employment expert

Consult human resources personnel or an employment law expert to ensure you’re compliant with hiring laws in your state or industry. An expert may help you create a formal rehire policy for your business.

Depending on how you laid off an employee, they may need to fill out new employment paperwork, such as a W-4 and I-9. Your employment expert can help you reach out to employees, offer re-employment, and complete paperwork.

2. Speak to your employees

As you reach out to employees, notify them of your situation. In response, they may have some questions. There are some topics you might want to prepare for, including their salaries, health benefits, and paid leave.

There’s a good chance your business isn’t operating normally right now. Employees will likely have questions about their schedules and work expectations. You may not have all the answers, but give them as much information as you can.

3. Comply with FLSA regulations

The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, record-keeping requirements, and other employment standards. COVID-19 has changed how many businesses operate, but it hasn’t changed the need to ensure businesses are complying with relevant labor laws.

Failing to comply with FLSA regulations could land business owners in some hot water. As you navigate the rehiring process, don’t forget FLSA compliance. Employees are still entitled to any applicable overtime pay, paid and unpaid breaks, and full payment for all time worked.

  1. Prepare to apply for loan forgiveness

Borrowers may have PPP loans forgiven, in whole or in part, if they meet certain requirements. Lenders are responsible for approving and denying loan forgiveness. Borrowers are responsible for providing documentation that verifies how they spent their loan.

This content is for information purposes only and should not be considered legal, accounting or tax advice, or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Intuit Inc. does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit Inc. does not warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers should verify statements before relying on them.

Given the large demand for additional authorized Paycheck Protection Program funds, not every qualified Paycheck Protection Program applicant will receive a loan. Loan and forgiveness calculations and eligibility may vary. Refer to SBA.gov for information about your particular situation.

The funding described is made available to businesses located in the United States of America and are not available in other locations.

We provide third-party links as a convenience and for informational purposes only. Intuit does not endorse or approve these products and services, or the opinions of these corporations or organizations or individuals. Intuit accepts no responsibility for the accuracy, legality, or content on these sites.

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Myranda is a content creator and researcher at Intuit. She graduated with an English and journalism degree from Boise State University and currently resides in Boise, Idaho. She’s passionate about dogs, music, and helping small businesses succeed. Read more