closed sign on a business door

Employer related federal legislation related to COVID-19

May 3, 2020 | Collins Consulting

We’ve gathered up some helpful government resources for small businesses suffering from the effects of the COVID-19 virus.

SBA Payroll Protection Plan (PPP)
This Small Business Administration loan program is available with a forgiveness option if minimum of 75% of funds are used for payroll and maximum of 25 % used for interest, rent and utilities (only) for 8 weeks following loan closing. The minimum employee count must remain (or exceed) the same as wages (and quantity of employees) as submitted with the original application. Program would seem to be best for companies that will generally continue with the same payroll in 2020 as 2019.

Employee Retention Credit
Available to employers whose company is required to fully or partially suspend operation because of Governmental orders or 50% decrease in revenue. A credit of 50% of wages paid from March 13 to Dec 31, 2020 can be deducted from payroll tax payments. If excess refund amount is due employer over the payroll tax payment, a refund is available by completed a new form 7200. The maximum credit if $5000 based on $10,000 of wages for 2020. Employer maximum size is 100 employees. Program would best fit companies that are required to be fully or partially closed (example of maximum group limit of 10).

Employer Share of Social Security Deferral
Employers can defer employer portion of social security payments with half due Dec 31, 2021 and balance due Dec 31, 2022.

Family First Coronavirus Response Act
Employers can obtain a credit (or partial credit) for sick and family leave wages paid employees who are unable to work to telework due to certain circumstances related to COVID-19 similar to employee retention credit.

There are many details to work out relative to the administration of the plans, but if you qualify or choose one of the plans, you may not participate in multiple plans. The exception is the Family First Coronavirus Response Act.


If you have any questions about these plans or want to learn more about how to apply for an SBA PPP loan through our affiliate TS Bank, please contact us at 712-487-3853 or email us at