4Thought Blog

After decades in limbo, regulations that clarify certain overtime pay practices have been released by the U.S. Department of Labor. The newly finalized rules explain how to calculate overtime pay for nonexempt salaried employees using the "fluctuating workweek" method.

Use of this method to calculate overtime pay currently affects only around 700,000 employees. But these rules "may encourage some employers to switch" to using it, said the DOL. The agency also expects that some employers will move hourly employees to salaried status to take advantage of the new rule.

One potential outcome of using the FWW method is lowering the cost of overtime pay. For that reason, when the rule was proposed, it was criticized by labor groups. In defending the rule, the DOL conceded that while the lower overtime pay scenario could happen, "the same employer could also reduce the employee's earnings by the exact same amount by lowering the employee's weekly rate of pay."

There's very welcome news for businesses with Paycheck Protection Program (PPP) loans.

Following on the heels of the House last week, the U.S. Senate on Wednesday passed a plan allowing companies more flexibility on spending their PPP loans.

Highlights include:

There’s some further welcome news for businesses and nonprofits that use GAAP (Generally Accepted Accounting Principles) for their financial statements. There is now an additional delay on implementing fairly cumbersome new revenue recognition and lease accounting standards.

Due to the coronavirus pandemic, the Financial Accounting Standards Board (FASB) voted last week to delay the start of new revenue recognition and lease accounting standards.

Even while conditions in some states have improved enough to allow some workers in exile to begin returning to their workplaces, life isn't likely to return to normal for a long while, thanks to the COVID-19 crisis.

First, some employees worried about the chances they could become infected might balk at the idea of returning to their offices even after you've decided that the risk is small and manageable enough to re-open your doors.

And second, some businesses and employees may decide that work-at-home arrangements should be more widely available all the time. As more employees experience a workstyle that doesn't involve a brutal commute but does offer greater flexibility in juggling work and personal responsibilities, you could face strong pressure to broaden that opportunity.

The novel coronavirus pandemic has caused difficulties for millions of businesses — from family-owned restaurants and niche manufacturers to multinational airlines and oil companies. As the economy slowly reopens across the country, old ways of doing things clearly won't work for most business operations.

But there's a potential upside: Major economic disruptions may provide opportunities for managers and owners who can reject the status quo and "think outside the box." Over the short run, businesses that "pivot" in a timely manner may be able to stay afloat until things decisively turn around for the better. There also may be long-term opportunities to add value and update your existing business model.

Few businesses have been left unscathed by the novel coronavirus pandemic. Unfortunately, some have been mortally wounded. Some may be living on life support thanks to financial help from the government, but their long-term survival is in doubt. That may not be inevitable, however, particularly for businesses that are proactive.

Business advisors are instructing companies to be resilient and nimble to come out on top. What does that mean for your business? Having deep pockets is one form of resilience. It gives you the ability to endure a sustained revenue drought while still keeping employees on board and your vendors, your landlord and other creditors on good terms.

But resilience is also a state of mind: that is, being able to have faith in the future, think and act creatively under duress to make a better future possible.

To help curb layoffs during the Coronavirus pandemic, Congress has created a new federal income tax credit for employers that keep workers on their payrolls.

You can’t use both the credit and a Paycheck Protection Program loan, but if you missed out on a loan and are working to maintain your staffing levels, the new Employee Retention Tax Credit may be a good option for your company.

The credit amount equals 50% of eligible employee wages paid by an eligible employer in a 2020 calendar quarter. It's subject to an overall wage cap of $10,000 per eligible employee. Here are the details.

There's a CARES benefit that’s not getting as much press as PPP but may be a useful liquidity tool for business owners battling through this crisis.

No matter the size of your business, the CARES Act allows employers to defer the payment of the employer’s share of social security taxes that would otherwise be due from 3/27/20 through 12/31/20 without penalty or interest charges.

These FAQs from the IRS lay out the rules for employers on which portion of the social security taxes they can defer, when they have to be paid, and if and when they can still take tax deductions on them. And if you received a PPP loan from the SBA, read more in the FAQ’s about how this benefit can apply to you.

The federal government is now offering several loans to help businesses through the Coronavirus pandemic, including a new loan just announced April 9.

Which loan is right for your business? Learn more about three available options below.

Many small business owners are working furiously to try to qualify for the new Paycheck Protection Program loans that were part of the Coronavirus stimulus, or CARES Act.

The Paycheck Protection Program provides small businesses with loans meant to help support payroll during the period February 15, 2020 through June 30, 2020 through 100 percent federally guaranteed loans if they maintain their payroll and employees during this emergency.

If the employer maintains its payroll and employees, then the portion of the loan used during the covered period for eligible payroll costs, interest on mortgage obligations, rent, and utilities would be potentially forgiven on a tax-free basis.

Read on below to get answers to some frequently asked questions about the new loans, which became available April 3.