Eligible businesses may apply for a Second Draw PPP loan
The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, announced that the Paycheck Protection Program (PPP) will re-open the week of January 11 for new borrowers and certain existing PPP borrowers. To promote access to capital, initially only community financial institutions will be able to make First Draw PPP Loans on Monday, January 11 and Second Draw PPP Loans on Wednesday, January 13. The PPP will open to all participating lenders shortly thereafter. Updated PPP guidance outlining Program changes to enhance its effectiveness and accessibility was released on January 6 in accordance with the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act.
This round of the PPP continues to prioritize millions of Americans employed by small businesses by authorizing up to $284 billion toward job retention and certain other expenses through March 31, 2021, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan.
Key PPP updates include:
– PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
– PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
– The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations;
– The PPP provides greater flexibility for seasonal employees;
– Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
– Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
– Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
– Has no more than 300 employees; and
– Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
How and when to apply
You can apply for a Second Draw PPP Loan from January 13, 2021, until March 31, 2021. To promote access for smaller lenders and their customers, SBA will initially only accept Second Draw PPP Loan applications from participating community financial institutions (CFIs). All Second Draw PPP Loans will have the same terms regardless of lender or borrower.
View the COVID-19 Resources Site for helpful information. https://calpay.com
Effective January 01, 2021, the following minimum hourly wages will be in effect for the State of California:
Employers with 26 or more employees: $14.00
Employers with 25 or fewer employees: $13.00
Included below are City minimum wage increases:
Daly City: $15.00
El Cerrito: $15.61
Half Moon Bay: $15.00
Hayward: $15.00 for employers with 26 or more employees
Hayward: $14.00 for employers with 25 or fewer employees
Los Altos: $15.65
Menlo Park: $15.25
Mountain View: $16.30
Novato: $15.24 for employers with 100 or more employees
Novato: $15.00 for employers with 26-99 employees
Novato: $14.00 for employers with 1-25 employees
Palo Alto: $15.65
Redwood City: $15.62
San Carlos: $15.24
San Diego: (city): $14.00
San Jose: $15.45
San Mateo: (city): $15.62
Santa Clara: $15.65
Santa Rosa: $15.20
Sonoma (city): $15.00 for employers with 26 or more employees
Sonoma (city): $14.00 for employers with 25 or fewer employees
South San Francisco: $15.24
Cal/OSHA’s emergency regulations requiring employers to protect workers from hazards related to COVID-19 are now in effect, following their approval on November 30, 2020 by the Office of Administrative Law. These new Temporary Standards apply to most workers in California.
Cal/OSHA has posted FAQs and a one-page fact sheet on the regulation, as well as a model COVID-19 prevention program.
The Department of Industrial Relations (DIR) issued a News Release
On December 1, 2020, the California Department of Tax and Fee Administration (CDTFA) will begin accepting applications for tentative small business hiring credit reservation amounts through an online reservation system. Qualified small business employers must apply with the CDTFA for a credit reservation. The credit reservations will be allocated to qualified small business employers on a first-come, first-served basis. The reservation system will be available from December 1, 2020 at 8:00 a.m., through January 15, 2021. Within 30 days of receiving an application, CDTFA will notify each applicant via email whether a tentative credit reservation has been allocated to them and the amount of the tentative credit reservation.
Taxpayers can use the credit against income taxes, or can make an irrevocable election to apply the credit against sales and use taxes.
To qualify for the credit, taxpayers (employers) must:
-Have 100 or fewer employees on December 31, 2019 (all employees, including part-time employees).
-Have experienced a 50% decrease in gross receipts from April to June, 2020, compared to the gross receipts in April to June 2019.
-Apply for a tentative credit reservation from CDTFA during the period of December 1, 2020 through January 15, 2021.
-Not be required or authorized to be included in a combined report.
For more information, visit our COVID-19 Resources pages: click here.
California legislation (SB 1343) enacted in 2018 requires employers with at least five employees to provide sexual harassment training every two years to all employees. The training must be at least 1-hour for non-supervisory employees and at least 2-hours for supervisory employees. Employers must provide sexual harassment training to all employees under the law by January 1, 2021.
All your employees need to attend training this year. You can purchase our training by the week or by month, for all your employees or individually.
California Payroll is offering you a 20-percent discount on training by using coupon code SAVE20TR.
Check out the California Payroll Workplace Harassment Prevention Store today!
Workplace Harassment Prevention Store
More information can also be found at the California Department of Fair Employment and Housing: https://www.dfeh.ca.gov/shpt/
AB 1867: Requires COVID-19 Supplemental Paid Sick Leave for Food Service Workers and for Employers with 500 or more employees nationwide.
View more information our Covid-19 Resources site.