Payroll Tips For COVID-19

May 29, 2020

COVID-19 has caused “non-essential” businesses around the country to close, leaving employers and employees facing serious financial issues. Whether you are the owner of a “non-essential” business or not, you have probably dealt with changes affecting your bottom line and your employees’ income. Use payroll tips from your Los Angeles accounting firm to make adjustments that hold your team over until the coronavirus problem ends. 

Opt For Paperless Payments

Switch to paperless payments if you haven’t already since traditional mail can risk the spread of infection. Use direct deposits, Venmo, Paypal, or another service to pay your team electronically, something that aids the environment and your reputation as a ‘green’ company in addition to helping everyone stay safe. Payroll apps also allow you to pay your employees from anywhere, which makes things easier if everyone is working from home. 

Use The Emergency Stimulus Check 

Make the federal stimulus check work for your team. Congress created the Payroll Protection Program as part of the relief package, which allows businesses with less than 500 team members to apply for loans up to $10 million. The loan makes it possible for businesses to keep employees paid, account for assorted expenses, and hire new team members. It’s also possible for businesses to enjoy 100% loan forgiveness. 

Review the program’s restrictions to determine your eligibility and possibly use PPP funds to pay into retirement plans, vacation, parental, and sick leave, and state and local taxes in addition to salaries and wages. 

Consider Freezing Your Payroll Provider

Find out if you can freeze your payroll provider service to lower costs. Depending on the service you work with, you will still be able to use continued payment and reporting services. The service will also likely be available to file your taxes and provide other services you need to help your team. Keep the new tax filing deadline in mind as well before you move forward with freezing actions. 

Streamline payroll services with help from Encino tax consultants. They offer payroll assistance to help you make adjustments that keep everyone paid without seriously affecting your bottom line. Contact your Los Angeles accountants today at Wallace & Associates to get started.