Tag Archives: covid-19

Effective Ways to Manage Employees in a Remote Environment: Workforce Automation

There’s no doubt about it: our workplaces are going to look very different post-COVID-19. This might mean keeping some of your team remote indefinitely, changing the layout of your offices, or switching up your workflow to fall in line with health and safety guidelines. We can’t force things back to how they were but we can focus on setting you and your employees up for success in the “new normal”. 

A few weeks ago, we gave a webinar on “Effective Ways to Manage Employees in a Remote Environment” in which we shared how companies can streamline their HR processes and maintain company culture.  We’re excited to bring you the webinar in four parts: Workforce Automation, the New HR, Benefit Package and Company Culture. 

Part 1: Workforce Automation

According to Capterra, 91% of professionals who work at small and medium sized businesses say workforce automation software is crucial, but almost 58% of them are not using it. That’s a huge gap. In our post-COVID-19 new normal, we believe more teams will adopt work from home policies which will make automated HR management software even more necessary. 

The Danger 

What’s the danger of not having a workforce automation system? Companies have done it the old-fashioned way with paper for over 50 years. What’s the fuss? 

The reality is too many things can fall through the cracks. The fact is, relying on paper processes when you have a remote team becomes inefficient very quickly. A simple paid time off (PTO) request can mean piles of paperwork, redundant requests, and scrambling to calculate accrued balances—all leaving opportunities for potential oversight. With the technology available today, it’s a no-brainer to make the switch to an automated workforce system. With an automated system in place, your employees can submit a paperless request via their self-service portal, their time gets deducted, and it automatically updates in payroll. 

How to Avoid 

Help your employees help you by giving them self-service logins that allow them to access and edit their information. There’s a dual-sided benefit: if employees are able to make edits to their W4, change their address, view and sign items, submit PTO requests, and enroll in benefit plans, then they’ll feel empowered AND it will relieve the stress of managing manual processes.

The Opportunity 

In addition to making things run more smoothly, there’s also an opportunity to eliminate potential lawsuits. Instead of worrying that employees can cite “you never told me”, you can keep track of everything in one database. This ensures nothing gets lost in the mix. Integrating employee lifecycle events into one system means that events are readily accessible at all times.

CorpStrat Tip:

We’ve seen many employers embrace workforce automation, but only in part. The market is filled with systems that offer piecemeal solutions: some just do new employee on-boarding, others only do benefit enrollment. Adopting separate services that don’t work together creates more manual work for your team.

We think employers should focus on making sure to streamline all employee lifecycle events into a single database that connects payroll and employee benefits into one system and has a powerful mobile application.

Interested in streamlining your workforce automation? Schedule a call with a CorpStrat agent: info@www.corpstrat.com

Confused About Your PPP Loan? We’ve Got Answers For You

(UPDATE as of July 4th 2020: On Saturday, July 4th, President Trump signed an extension of the small business loan Paycheck Protection Program (PPP) into law, according to the White House. PPP will now remain open to applications through August 8th.)

Update: As of June 4th, 2020, the House-passed Payment Protection Program reform bill was approved by the Senate. The PPP Loan forgiveness parameters have changed, please see all updates at our new blog post.

So you just received your PPP loan and you still have a lot of questions. You’re not alone. It’s a new program and the Small Business Administration (SBA) is still releasing new guidelines. The most pressing question we’re hearing from employers who’ve received the loan is: How do I receive forgiveness on my PPP loan? Read on as we answer this and more FAQs you have about PPP loans. 

What is the PPP Loan? 

The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, was enacted to provide immediate assistance to individuals, families, and businesses affected by the COVID-19 emergency. Under the CARES act, the SBA was able to temporarily guarantee loans under a new program called the “Payment Protection Program” (PPP). PPP loans are designed to help small businesses, independent contractors and self-employed persons keep their workforce employed during the economic hardship many are experiencing due to COVID-19. Loans guaranteed under the PPP loan will be 100 percent guaranteed by SBA, and the full principal amount of the loans may qualify for loan forgiveness. 

What expenses are forgivable with my PPP loan?

In order to receive PPP loan forgiveness, you need to use the loan for eligible expenses. It is required that at least 75% of your PPP loan is used to cover payroll costs. The remaining 25% can go towards specified non-payroll costs that are essential to running a business. (Updated forgiveness parameters as of June 4th, 2020. See our new blog post.)

Speaking of forgiveness, is the PPP loan all or nothing?

No. Whatever portion is not forgiven can be retained and repaid over a 24 month period at just 1% interest. (Updated forgiveness parameters as of June 4th, 2020. See our new blog post.)

If I laid off employees – do I have to hire them back?

No. But, the loan forgiveness amount will be reduced if the business has reduced its number of full-time equivalent (FTE) employees or has reduced the salary or wages of certain employees based on the following formulas:

Formula for reduction in FTE employees:

What percentage of the loan has to be used towards payroll?

Not more than 25 percent of the loan forgiveness amount can be used towards non-payroll costs (i.e.,mortgage interest, rent and utilities). Additionally, proceeds from any advance up to $10,000 on an Economic Injury Disaster Loan (EIDL) will be deducted from the loan forgiveness amount. (Updated forgiveness parameters as of June 4th, 2020. See our new blog post.)

When does my eight-week period start?

The covered period begins on the date the lender makes the first disbursement of the loan, this means it begins the first day a loan payment is sent out. 

After 8 weeks I can’t afford to keep my employees – what do I do?

Once the 8 weeks is up, continue running your business as you would otherwise do so. Even though it’s a difficult step, moving forward with furloughing or termination if necessary will allow your employees to sign up for state and federal resources. Note that any change in employment status requires paying out any PTO or unused leave. (Updated forgiveness parameters as of June 4th, 2020. See our new blog post.)

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We understand that these are confusing and uncertain times. That’s why we’re always here to help, contact your CorpStrat rep with questions, anytime! Call us toll free at (800) 914-3564 or email us at info@www.corpstrat.com.