Navigating COVID-19: Impact of FFCRA and CARES Act on Nonprofit - - PowerPoint PPT Presentation

Navigating COVID-19: Impact of FFCRA and CARES Act

• n Nonprofit Operations

April 17, 2020

Webinar Goals

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• Provide information on the Families First

Coronavirus Relief Act (FFCRA) and Coronavirus Aid, Relief, and Economic Security Act (CARES) and the impact it could have on your nonprofit operations.

• Provide additional resources
• Gather feedback from nonprofits

Sarah Pinder Engagement Director

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DISCLAIM AIMER: ER:  Our ur BEST un unde dersta tand ndin ing g as as of this is momen ment t in in tim ime  Pres esen enti ting g gu guid idance e NOT leg egal or fin inancia ial adv dvic ice  You u shoul uld d mak ake e al all de decis isio ions ns af after er consulti nsulting ng your ur attorn rney y and d CPA.  MNA staf aff f ar are e NOT lawyers or CPA’s

Agenda

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• Message from MNA’s President and CEO
• Emergency Paid Sick Leave
• Family Medical Leave Expansion
• Expanded Unemployment Benefits
• Additional Resources and FAQ’s

Donna Murray-Brown

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President and CEO

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MNA’s Framework for Responding to COVID-19

• Resp

sponse

• nse (Imm

mmedia diate e and Ongoin

• ing)

g)

• Providing resources, gathering feedback
• Relief

lief (Next xt 3 t to 6 m months ths)

• Understanding and advocating for nonprofit needs
• Recover

ery (Ong ngoin

• ing)

g)

• Connecting nonprofits to or providing supports identified

during relief phase

• Reform
• rm (6 months

nths and beyond) d)

• Advocating for legislative and regulatory changes

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Presenter: Bob Weins

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Navigat gating ing the Covid id-19 Progr grams ams

Paycheck Protection Program EIDL/EEIG Small Bus Debt Relief MI Small Business Relief Emergency Paid Sick Leave Expanded FMLA Expanded Unemploymt Insurance Employee Retention Tax Credit Delay of Employ Tax Pmts Elective Elective NA Closed Mandatory Mandatory Mandatory* Elective Elective

* Non-profits can opt-out of UIA insurance coverage

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Navigati gating ng Covid id-19 – Impact act of FFCRA RA and CARE RES S Act

Emergency gency Pa Paid Sick Leave Family ily Medica ical Leave e Expan ansi sion

• n

EFFECTIVE DATE

4/1/2020 TO 12/31/2020

COVERED EMPLOYERS

500 or fewer employee (full, part-time, on leave and day laborers working in the US) at the time the sick leave is being taken

COVERED EMPLOYEES

• All

no required minimum days/hours of previous work history

• On payroll for 30 days

(can be non-consecutive)

• Unable to telework

DURATION OF LEAVE

• 2 Weeks (80 hour maximum)
• 12 Weeks

HOURS PAID

Full-Time: Hours normally scheduled for the week. (Sick Pay has 80/hour maximum) Part-Time: Ave number of hours worked in prior 6 months

Famil ily First st Coron

• navirus

virus Respo sponse nse Act (FFCR FCRA) A)

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Navigati gating ng Covid id-19 – Impact act of FFCRA RA and CARE RES S Act

Emergency gency Pa Paid Sick Leave Family ily Medica ical Leave e Expan ansi sion

• n

QUALIFYING REASONS FOR LEAVE

Covi vid-19 9 Health alth Relat lated ed Reas easons:

• 1. Gov't quarantine or isolation
• rder*;
• 2. Health care provider advised self-

quarantine; and,

• 3. Experiencing Covid-19 symptoms

and seeking medical diagnosis. Covi vid-19 Care-Rela elated ed Reaso asons: s:

• 4. Caring for an individual in

isolation/quarantine described in (1)

• r (2) above;
• 5. Caring for a child whose school or

place of care is closed/unavailable for Covid-19 reasons;

• 6. Similar conditions specified by

Secretary of HHS.

• Caring for a child whose school or place
• f care is closed/unavailable for Covid-19

reasons.

Employers may exclude employees who are healthcare providers or first responders from being covered by the school closures and childcare benefits (discussed later)

* Executive Order 2020-21 that (suspends bus. activities/shelter in place) does not appear to be a State Covid-19 quarantine/isolation order.

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Navigati gating ng Covid id-19 – Impact act of FFCRA RA and CARE RES S Act

Emergency gency Pa Paid Sick Leave Family ily Medica ical Leave e Expan ansi sion

• n

MAXIMUM BENEFITS

Health alth-Relat lated ed Reason asons (1-3) 3)

• full pay with maximum benefit

$511/day Care re-Rela elated ed Reas eason

• ns (4-5)

5)

• 2/3rds of pay with maximum benefit

$200/day First st Two

• Week

eks

• Can be unpaid *

Remain ainin ing Ten Week eks

• 2/3rds of pay with maximum benefit

$200/day * Employee can use Emergency Sick Paid Leave, vacation, PTO or other employer benefits during this two-week period.

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Navigati gating ng Covid id-19 – Impact act of FFCRA RA and CARE RES S Act

Emergency gency Pa Paid Sick Leave Family ily Medica ical Leave e Expan ansi sion

• n

JOB PROTECTION

• None

Right t to ret eturn after er 12 week eeks

• 25+ Employees:

(i) Job restoration required

• Less than 25 Employees:

(i) Rehire – Not required if position is gone due to economic or

• perating conditions caused by the public

health emergency; and, (ii) Equivalent Position - Employer must contact employee if an equivalent position opens within one-year from end

• f employee’s FMLA leave.

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Navigati gating ng Covid id-19 – Impact act of FFCRA RA and CARE RES S Act

Emergency gency Pa Paid Sick Leave Family ily Medica ical Leave e Expan ansi sion

• n

EMPLOYER BENEFITS

Programs are Cost-Free to Employers: Employer reduces its payroll tax deposit by the cost of the paid benefits. If benefit costs exceed tax deposit, can apply to the IRS for a refund of the excess.

NOTICE REQUIREMENTS

Employer must provide employees with written notice of Paid Sick Leave and FMLA

• programs. Sample notice is on the next slide.

https:/ ://www.dol.g .dol.gov/ v/sit ites es/dolg dolgov/ v/files iles/WHD/ WHD/pos

• ster

ers/FFC FFCRA_P _Pos

• ster_

er_WH1 WH1422 22_Non _Non-Fede ederal.p al.pdf df

BEST PRACTICES

Provi vide e emp mplo loyee ees s with writt tten en not

• tice

ice that:

• Emergency Paid Sick Leave and FMLA Expansion benefits are temporary and will

expire on December 31st.

• Emphasize to your employees that FMLA Expansion benefits ONLY apply to

Covid-19 related childcare. Not maternity, paternity or health-related needs for leave.

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Navigati gating ng Covid id-19 – Sample ple FFCR CRA Emplo ployee ee Notic ice

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Navigati gating ng Covid id-19 – Impact act of FFCRA RA and CARE RES S Act

Emergency gency Pa Paid Sick Leave Family ily Medica ical Leave e Expan ansi sion

• n

DOCUMENTATION REQUIREMENTS

• The name of your employee requesting leave;
• The date(s) for which leave is requested;
• The reason for leave; and
• A statement from the employee that he or she is unable to work because of the reason.

If your employee requests leave because he or she is subject to a quarantine or isolation

• rder or to care for an individual subject to such an order, you should additionally

document the name of the government entity that issued the order. If your employee requests leave to self-quarantine based on the advice of a health care provider or to care for an individual who is self-quarantining based on such advice, you should additionally document the name of the health care provider who gave advice. If your employee requests leave to care for his or her child whose school or place of care is closed, or childcare provider is unavailable, you must also provide the following documentation:

• The name of the child being cared for;
• The name of the school, place of care, or child care provider that has closed or

become unavailable; and

• A statement from the employee that no other suitable person is available to care for

the child.

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Navigati gating ng Covid id-19 – Impact act of FFCRA RA and CARE RES S Act

Emergency gency Pa Paid Sick Leave Family ily Medica ical Leave e Expan ansi sion

• n

EFFECTIVE DATES

April 1 – December 31, 2020

EMPLOYEES COVERED

• All
• Worked 30-days (non-consecutive)
• Can’t telework

LEAVE DURATION

• 2 weeks (80 hours)
• 12 weeks

QUALIFYING REASONS

• Health
• Care
• Childcare only

MAXIMUM BENEFITS

• Health: Full pay (Max. $511/day)
• Care: 2/3rds pay (Max $200/day)
• First two weeks can be without pay
• Care: 2/3rds pay (Max $200 day)

JOB PROTECTION

• None
• Limited if under 25 employees

EMPLOYER COST

None

NOTICES AND BEST PRACTICES

• Required employee notice
• Inform employees of:

(i) Documentation requirements (ii) Benefits expire on December 31, 2020

SUMMAR MARY

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Pau ause se for

• r Qu

Questio estions ns

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Navigati gating ng Covid id-19 – Impact act of FFCRA RA and CARE RES S Act

Expan anded ed Un Unem employme yment nt Benef efit its s (CARE ARES Ac Act) EFFECTIVE DATE

March 30, 2020 – December 31, 2020

COVERED EMPLOYERS

All employers enrolled in Michigan UIA program.

(Workers of nonprofits that don’t participate in Michigan UIA are eligible to apply for the expanded benefits under the CARES Act.)

COVERED WORKERS*

• Fully/partially laid-off employees, independent contractors, sole proprietors,

individuals with exhausted benefits

• Can’t receive unemployment benefits while you qualify for Sick or Family

leave. * To receive the expanded UI benefits, workers must certify their claim is Covid-19 related.

* Extended UI benefits are limited the following Covd-19 related scenarios:

• Workers who have an unanticipated family care responsibility, including those who have childcare responsibilities due

to school closures, or those who are forced to care for loved ones who become ill.

• Workers who are sick, quarantined, or immunocompromised and who do not have access to paid family and medical

leave or are laid off.

• First responders in the public health community who become ill or are quarantined due to exposure to COVID-19.

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Navigati gating ng Covid id-19 – Impact act of FFCRA RA and CARE RES S Act

Expan anded ed Un Unem employme yment nt Benef efit its s (CARE ARES Ac Act) INCREASED BENEFITS

Michigan UI weekly benefit + $600/week Pandemic Unemployment Compensation (PUC) NOTE: $600/week PUC expires July 31, 2020 *

LONGER BENEFIT PERIOD

• Increased from 20 to 39 weeks

IMMEDIATE UC PAYMENTS

• One-week waiting period eliminated

LONGER APPLICATION PERIOD

• UIA will be accepting claims and benefit applications back-dated to reflect the

date on which the claimant was laid-off due to COVID-19, beyond the previously established 28-day period.

FEWER FILING REQUIREMENTS

• Suspended requirements that workers:

(i) apply for benefits in-person; and, (ii) search for new employment.

* Workers making less than $24/hour ($48,000/yr) might be better off receiving expanded unemployment benefits than working.

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Navigati gating ng Covid id-19 – Impact act of FFCRA RA and CARE RES S Act

Expan anded ed Un Unem employme yment nt Benef efit its s (CARE ARES Ac Act) EMPLOYER BENEFITS

Employer not be charged for benefits paid under the CARES Act or due to an executive order requiring the employer to close or limit operations.

NOTICES

• Provide the employee with a formal Unemployment Compensation Notice

https://www.michigan.gov/documents/uia_UC1710_76109_7.pdf?utm_medium=email&utm_source=govdelivery

BEST PRACTICES

• Ensure employees are provided information on how to obtain unemployment

insurance benefits.

https://www.michigan.gov/documents/uia/160_-_Claiming_UI_Benefit_In_Michigan_-_Jan2014_444213_7.pdf

• Don’t create a contractual obligation to bring the employee back to work.

Let the employee know that the situation is fluid and subject to change.

• Let your employees know that if their hours are reduced, placed on leave, or

are unable to work because they are sick, immunocompromised, quarantined

• r have a Covid-19 family care responsibility, they are eligible for

unemployment insurance benefits.

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Navigati gating ng Covid id-19 – Impact act of FFCRA RA and CARE RES S Act

Expan anded ed Un Unem employme yment nt (CARE ARES Ac Act) t) BEST PRACTICES

Don’t “terminate” employees if you want to continue their health insurance.

• Report to your insurance company these employees are on furlough.
• Have employees applying for UI benefits indicate their expected return to work

date that is within 120 days of the layoff date.

Furlough

Temporary Leave Confirm employee’s insurance can continue

Layoff

Permanent / No Return Date Insurance terminates (triggers COBRA)

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Navigat gating ing the Covid id-19 Progr grams ams

Paycheck Protection Program EIDL/EEIG Small Bus Debt Relief MI Small Business Relief Emergency Paid Sick Leave Expanded FMLA Expanded Unemploymt Insurance Employee Retention Tax Credit Delay of Employ Tax Pmts Elective Elective NA Closed Mandatory Mandatory Mandatory* Elective Elective

* Non-profits can opt-out of UIA insurance coverage

Final al Thoughts ghts:

• Programs are mandatory and cost-free the employer
• Comply with the notice and documentation requirements
• Remind Employees:
• Expanded sick/family medical leave expires 12/31/2020
• Must exhaust sick/medical leave before applying for

unemployment

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Navigat gating ing the Covid id-19 Progr grams ams I hope these three webinars have been helpful. This is our small way of thanking king you for the work you do.

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Pau ause se for

• r Qu

Questio estions ns

Discussion Question (use question box to respond): What specific resources do you need? What topics do you need more support in?

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FFCRA and CARES Res esour urce ces

• Sample written notice of Paid Sick Leave and FMLA programs
• Formal Unemployment Compensation Notice
• Information on how to obtain unemployment insurance benefits

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MNA Res esour urce ces s spe pecif ific ic to COVID-19 9 Res espon ponse

• MNAonl
• nlin

ine. e.org

• rg- Special COVID-19 section
• Sign-up for e-newsletters
• Contact MNA staff
• Calendar with events
• Future tele-town halls and webinars

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Connect on Social Media

@MN @MNAonline

• nline

Join n Link nked edIn In group: up: Leading ding No Nonprofits its Throug ugh h COVID VID-19 19

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Thank You! Please provide feedback via online survey after the event to help inform future webinars.

Send additional feedback to spinder@mnaonline.org.