ASA Central Network

communities_1.jpg
  • 1.  Bringing back employees who were laid off

    2020 Staffing World Attendee
    Posted 05-05-2020 22:48
    Like many other staffing agencies, we lost a lot of temporary employees due to Covid-19 related layoffs. 

    We received funds from the PPP about a week ago, and we are trying to aggressively work hard to bring back employees and use the funds as they were intended.

    However, without guidance on how the formula works for the total payroll and the employee count during the eight-week period, we want be cautious since we don't know how much loan forgiveness we will receive.

    One thing we've done is offer to bring back employees at cost or even bill the client less than what it costs us. 

    What are things you have done to bring back employees? Is there anything that is working to offer incentives to clients to hire employees back?

    ------------------------------
    Nathan Dibagno CSP
    Owner
    AtWork Personnel
    Winston-Salem NC
    (336) 842-8247
    ------------------------------
    Avionte post ad


  • 2.  RE: Bringing back employees who were laid off

    Posted 05-06-2020 14:57

    Your total head count and payroll each week needs to match or exceed the amount as stated in your PPP loan application in order to be forgiven. Once you receive the funds the clock starts immediately ticking for the following 8 weeks.

     

    Larry Caldarera

    President

    Westaff and Remedy Staffing of New Orleans

    111 Veterans Memorial Blvd. Suite 720

    Metairie, LA 70005

    Office: 504.832.7237 X107

    Mobile: 504.628.1241

    lcaldarera@westaff.com

    www.westaffneworleans.com

     

     

    Leaders in Professional, Technical, Administrative and Industrial Staffing Since 1958

    Westaff logo

    Remedy Logo

     

    https://www.linkedin.com/in/larry-caldarera-369546/

     

    https://www.facebook.com/search/top/?q=westaff%20new%20orleans&epa=SEARCH_BOX

     

     

     




    Avionte post ad


  • 3.  RE: Bringing back employees who were laid off

    Posted 05-06-2020 18:14
    Nathan, 

    You're not alone; this is a double-edged sword for staffing companies. The possibility of contractor payroll being forgiven is very helpful, but to manage the headcount requirements and achieve loan forgiveness is a large burden.

    There are different strategies. We have elected to keep contractors "on the bench", as achieving a higher percentage of loan forgiveness has great value, and "retain employees" is explicitly mentioned in the law. Obviously, it minimizes your risk if you can bill a portion of that to your client. Some on these forums have recommended discounted or below cost billing. Some haven't liked that suggestion. However, adding back headcount is an initiative that you can't really go halfway on in efforts to achieve 100% forgiveness. You'll need as many as you can get.

    As we understand it, the loan forgiveness will be your average weekly FTE employee headcount during the 8 weeks after you received funding divided by your FTE employee headcount from your "lookback period," which is your choice of 2/15/19 - 6/30/19 or 1/1/20-2/29/20. Your forgiveness is reduced if anyone who did not make an annualized pay rate of $100K+ during any pay period in 2019 receives a pay cut of 25%+ when compared with the last full quarter they worked for you. Key questions are:
    1. What is the average weekly FTE headcount of your lookback period?
    2. How many people do you need to hire / hire back to achieve that number during your 8 week covered period?
    3. Did we cut anyone's pay 25% or greater?

    There are some ambiguities, but that should help get you started.

    ------------------------------
    Ryan Mann CSC
    Direct Hire Manager
    Amtec Inc.
    Chino Hills CA
    (714) 993-1900
    ------------------------------

    Avionte post ad


  • 4.  RE: Bringing back employees who were laid off

    2020 Staffing World Attendee
    Posted 05-06-2020 22:05
    Thanks, Ryan. That's very helpful. Probably the most helpful post I've seen in figuring out the formula. Hopefully we have more guidance soon.

    What are some programs that agencies have implemented to successfully bring back employees? (Other than just paying them to sit at home.)

    Nathan

    ------------------------------
    Nathan Dibagno CSP
    Owner
    AtWork Personnel
    Winston-Salem NC
    (336) 842-8250
    ------------------------------

    Avionte post ad