MOMENTUM September 2020 | Page 16

HR CORNER 14 MOMENTUM NICOLE BELLOW, DBA, MBA, SPHR, SHRM-SCP Sr. Human Resources Consultant Smarter HR Solutions, LLC 713-999-1205 | [email protected] www.smarterhrsolutions.com Do You Need Additional Assistance with Payroll as the Target to the “NEW NORMAL” Moves? COVID-19 has not treated us kind and the total negative impact on small businesses has yet to be calculated. As we try to navigate PPP forgiveness, make dollars stretch, and retain employees, you may feel there is not much you can do until we find a “new normal”. There is a resource that may help stretch payroll dollars so you can refocus on growing your business. We are familiar with Texas Workforce Commission (TWC) and its core services. Due to the pandemic, we have come to equate TWC with unemployment benefits for employees (and sole proprietors due to the CARES Act), who have lost their jobs, were furloughed, or experienced a reduction in hours/wages. Texas Workforce Commission’s also offers a Shared Plan to employers as an alternative to reduction in force during an economic downturn. This voluntary plan allows employers to reduce their employees’ wages and the employee is eligible for partial unemployment benefits to recoup a portion of their wages that were decreased. To use the Shared Plan, normal work-week hours must be reduced by 10% to 40% for at least 10% of the employees in a given unit. Further, employers can have multiple plans. An employer may choose to have a plan for salaried employees (i.e. reduction of 20%) and a plan for hourly employees (i.e. reduction of 15%). Insurance and other benefits are expected to remain active. Please note that although salaried employees may participate in the Shared Plan, the reduction must meet the Fair Labor Standards Act (FLSA) – (i.e. minimum wage – more information at: https://www.dol. gov/agencies/whd/flsa). Seasonal employees are not eligible for the Shared Plan. Under normal circumstances, laid-off or furloughed employees’ unemployment claims and Shared Plans are charged against an employer’s unemployment tax account, which negatively impacts employers’ unemployment tax rate for the subsequent year. However, due to the financial hardships experienced by the majority of businesses due to COVID-19, employers are exempt from charges against their unemployment tax accounts for unemployment claims brought by their employees as a result in work separations or reductions resulting from COVID-19. If you are looking for ways to retain your talent and extend your payroll budget until your business rebounds, the Shared Plan may be the option for you. The process is simple, and the plans are normally approved within seven business days. Once the plan is approved, employees receive a link to apply for unemployment benefits under the Shared Plan. The employer reports hours weekly or biweekly and the employees receive their partial unemployment benefit plus the reduced wages from the employer. The plan can be stopped and started at any time so if the employer has an unexpected influx of work and employees work their normal hours without the planned reductions, the employer will simply omit reporting hours that week.