Webinar: Success Beyond COVID-19: Tips and Tactics to Help QSR and Lodging Franchises Thrive

We’re living in unprecedented times, and as we emerge from the chaos of COVID-19, we need to determine the best path forward for businesses and employees. This is especially important for the QSR and Lodging industries that faced a unique set of challenges during the pandemic. In this webinar, you will learn how to reframe your business plan for the “new normal” by leveraging advice and tips from other companies, how to plan successful business recovery efforts, and how to ensure that your staff is prepared to work and move forward.

This webinar features three industry experts sharing their knowledge. Jeanniey Walden (formerly Jeanniey Mullen), Chief Innovation and Marketing Officer at DailyPay, explains how on-demand pay can be the cornerstone of any business recovery plan. Barb Powell, VP of Operational Support Millennial Restaurant Group, LLC, which franchises Blaze Fast Fire’d Pizza, shares her innovative, grassroots approach to achieving success during unprecedented times. John Theisen, Co-owner of Brew City Pizza, which franchises Domino’s Pizza, explores the unique opportunities for QSRs to succeed during and after the pandemic. Together, they provide a wealth of knowledge and unique recovery ideas that can easily be applied to your business.

As we emerge from the chaos of COVID-19, every company has an unprecedented opportunity to do things right this time, and rebuilding employer-employee trust is the first step. Companies should also seize this opportunity to redefine their culture and revisit how they work. And of course, it should be a priority to ensure that frontline heroes are honored and recognized for their hard work every day.

When you Pay Different with DailyPay, you can help make all those necessary shifts post-COVID. It can also help your employees successfully manage their finances and their futures and help your business thrive. Our clients have seen up to a 72% reduction in turnover among DailyPay users, with a decrease in associated costs. Download this webinar to learn more about how offering an on-demand pay benefit can help your company and your employees succeed in today’s new world.

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7 Significant Ways the Traditional Workplace Will Never Be the Same

Stop reading and take a look around. Chances are you are working in a home office, from the couch, in your guest room, your child’s room, or potentially even working outside and enjoying the sunshine. In more normal times, most would classify you as “working from home.” But nowadays, it just means you are “working.”

In our new normal, seven significant transformations are taking place, which are architecting the true path in the future of work.

  1. The acceleration of digital transformation. Every industry has witnessed its own version of digital transformation, and it is fantastic! Acceleration has taken place in remote telehealth, insurance claim scanning, contactless payments, on-demand pay, and even online workouts. The world of work has had to make one choice — accelerate or die. Food on Demand says it best: 3 years of digital transformation has occurred in 3 months. And this transformation is just heating up.
  2. Greater expectations from employers. The combination of the new generations of Millennials and Generation Z in the workplace and the health crisis has created the perfect storm for employers. Employees now expect employers to step up as leaders and meet their needs for personal security, financial security and work culture. The demand is serious. Employees expect more because they believe we deserve more/better.
  3. The meaning of the “office” has changed. With 67% of workers stating that they would prefer to maintain a flexible work schedule when the economy opens up, results suggest that workers are looking to continue remote work 2-3 days per week. Business leaders suggest that up to 15% of the workforce will remain remote, placing a higher value on family time. The COVID-19 crisis has reset our values. Corporate real-estate agents don’t necessarily agree. While the jury is still out on this one, only time will tell.
  4. The rise of the micro-event. The quest for creating experiences has been accelerated. People will not want to gather in crowded events and conferences. Instead, micro-events and partially in-person/partially streaming events will allow more personal interaction with people who will become much more than just a name and a title as a result. Large-scale events replaced with opportunistic virtual and smaller experiential events will create tighter relationships, supporting increased connections and persuasion. The ketchup cannot be put back into the bottle. 
  5. Business travel will be redefined. At least for the next 12-18 months, travel restrictions and health concerns make virtual meetings top of mind. That said, we expect to see business travel improve locally first, then regionally, then nationally. In the meantime, expect a boom in new technology that enables us to find new ways to interact. SpaceX has launched at the perfect time. 
  6. Companies will seek cost containment. Expect restructuring actions, across every industry, that will help reduce costs and increase efficiency and productivity. COVID-19 forced us to accelerate this internal review of all business practices. As employees demand more from their employers, companies will take the opportunity to do it all different this time — to staff different, to interact with customers different and to pay different.
  7. Trust in the workplace has been shaken. Employee experiences matter now more than ever. HR leaders will play a more strategic role in the recovery of our businesses by creating a sense of stability and a better work/life blend in our new world of work. Every aspect of HR service, from increased PPE and changes in PTO to a more flexible work schedule and even a commitment to giving employees full control over their earned income, will be under consideration, and offering a daily pay benefit will go a long way in re-establishing trust in the workplace.  

Learn more about the pivotal role DailyPay will play in the new workplace.

The Quarantined Economy: Productivity Hacks

The COVID-19 crisis has turned the daily lives of most Americans completely upside down. Productivity can become a real struggle when remote working and learning have become the new normal, especially when everyone who’s trying to do those things is cramped together in the same space and unable to leave. Family responsibilities may have also increased or shifted as everyone is adjusting to new rules and roles, all of which can make getting things done feel overwhelming and difficult. Here are some hacks to keep you on track and keep your brain sharp and clear:

Set clear boundaries within your space

Now that everyone in your home is cramped together and needs to utilize the same space for their at-home responsibilities, setting clear divisions will help everyone be more productive. Maybe one bedroom becomes a classroom for the kids while another becomes a workspace for you and your spouse. Even if you’re living on your own in a small apartment, designating the couch or kitchen table as your workspace may help you get into “the zone” and concentrate on what you’re trying to achieve. While not everyone has the luxury of a home office, carving out a bit of space for yourself, however possible, will help you maintain structure and control in the midst of so much change.

Complete a project that’s been hanging over your head

Maybe it’s writing thank-you notes from the last holiday, mending clothes that have tears or missing buttons, or organizing files or photos. Whatever the task may be, we all have those few things that seem eternally stuck at the bottom of our to-do lists. This is the perfect time to cross them off for good and pat yourself on the back for spending an evening doing something besides binge-watching Netflix, or at least doing something else WHILE you were watching. You can also check out these tips on how to train yourself to stop procrastinating.

Set goals for yourself, no matter how small

Maybe it’s something as simple as completing an at-home workout. Maybe it’s staying off social media for the day. Maybe it’s cooking a healthy dinner instead of ordering another night’s worth of takeout. Whatever it is, the feeling of accomplishment that will come from completing a task that’s important to you is absolutely invaluable at a time like this. Even creating a to-do list each day to give yourself the satisfaction of crossing off tasks as you complete them can be immensely helpful. 

Read a book from an unfamiliar genre

While traveling and visiting new places may be off-limits during this time, daydreaming and imagination certainly aren’t. There are tons of benefits associated with expanding your reading repertoire, from widening your worldview to improving your writing. This is a time when we could all use an extra dose of escapism and adventure, and reading is the perfect way to get it. Relaxing with a new book will also give your eyes a much-needed break from screens.

Check out this article for more information on how reading can help make you be more productive.

Learn a new skill or language

Got knitting needles and yarn sitting in your closet but no idea how to purl? Always wanted to add juggling to the “special skills” section of your resume? Need to brush up on your foreign language skills to check in with your loved ones overseas? YouTube is chock-full of how-to videos on almost every conceivable subject, and DuoLingo is an amazing free resource for language learners. Take advantage of being stuck indoors and keep your brain sharp and your ability to focus strong.

If you’re looking for ways to relax and lower your stress levels while you remain quarantined, check out our stress-reduction hacks

These ideas just make good logical sense. Another thing that makes good logical sense is allowing employees to access their earned pay every day. If you want to learn how you can pay different as we begin to reopen America and our businesses, read our eBook, Pay Different: Reimagining Pay in the Post-COVID-19 Workplace and Beyond, or please reach out to us here.

In addition, DailyPay recently hosted a webinar in which we discussed what you can do to support your workforce’s financial security as we continue to navigate this unprecedented time. Tune in to our on-demand recording to gain some valuable insights into what you could be doing as well.

WEBINAR: How to Maintain and Improve Your Employee Experience in These Unprecedented Times

Employers are juggling more than ever as they scramble to meet the evolving needs of the workforce while also trying to meet their business goals in the midst of a global pandemic. At DailyPay, we have made it our mission to support businesses across the country as we all try to navigate these unprecedented times with grace, agility and adaptability. We know how overwhelming all of this change and uncertainty can be, so we’ve created a series of webinars to help you and your business make the most of this situation.

Our first webinar features two of DailyPay’s finest: Jeanniey Walden (formerly Jeanniey Mullen), our Chief Innovation and Marketing Officer, and Taylor Paone, our Employee Experience and Culture Manager. They have myriad unique professional insights to share regarding the most effective ways to navigate the COVID-19 crisis. In this webinar, Taylor and Jeanniey explain why transparent and empathetic communication is key to successfully managing your remote employees and ways to be their port in the storm of this crisis. They’ll provide expert tips and advice on how to maintain your company culture and employee experience from afar as you and your team adjust to this “new normal.” You’ll also get the inside scoop on what we are doing at DailyPay to maintain our status quo as an industry leader in employee experience.

We’re all facing the COVID-19 crisis together, and DailyPay is committed to being a source of truth and guidance during these tumultuous times. Whether your employees are on the frontlines of the pandemic or safely working from home, Taylor and Jeanniey will present some of the tools needed to meet their needs, from an improved pay experience to strengthened employer-employee relationships.

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We hope you’ll tune in to this webinar to stay up to date with best practices and innovative ideas to deal with these unprecedented times.

[WEBINAR] Supporting Your Workforce’s Financial Security Through the COVID-19 Crisis

The needs of the workforce are very unique at the moment due to COVID-19. Our recent statistics show that 43% of employees using DailyPay are accessing their pay early for coronavirus-related expenses — a number that spiked 400% in recent days. Beyond the usual woes of making ends meet between paychecks, employees are also now concerned about having the groceries and supplies necessary to care for themselves and their families during quarantine, as well as keeping all their loved ones safe and healthy. This is a period of high anxiety for many Americans, but there are steps you can take as an employer to support your employees’ financial security and alleviate some of that stress.

This webinar features DailyPay’s founder and CEO, Jason Lee, and Jeanniey Walden (formerly Jeanniey Mullen), DailyPay’s Chief Innovation and Marketing Officer. By tuning in, you’ll gain insight into how industry leaders are handling the ever-evolving rules, regulations and best practices associated with COVID-19 in order to support their employees as much as possible. So many employers are going above and beyond to ensure they are doing everything they can for their employees. It seems that in the midst of this crisis, many businesses are finally starting to realize how important the employee pay experience is to their company’s success.

From pay raises to bonuses to increased emotional support to an improved pay experience, there are multiple strategies employers can use to support their workforce through this crisis. This webinar will focus on how COVID-19 has impacted the hourly workforce, what other companies are doing to support their employees’ personal financial security, and how our team at DailyPay is helping our partners and their employees navigate COVID-19.

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Expect Employers to Accelerate New Pay Practices as the Economy Recovers

Since the COVID-19 health crisis began, employers have needed to speed up use of contactless on-demand pay programs (sometimes called earned wage access), according to employee payment leaders speaking during a recent podcast of The Source, by DailyPay.

The pandemic and the resulting economic shutdown is “one of those events where those in HR, Payroll and Finance have had to think through sets of challenges that they never thought through before in their professional careers,” said DailyPay CEO, Jason Lee. Employers can no longer be “looking for a five-year plan for transformation, we are looking at now,” he said.

This has meant the adoption of new pay practices at an accelerated rate.

Even before the coronavirus struck, companies already had started to address the changing pay needs of a tech-savvy generation of younger workers that “actually values pay choice and pay flexibility sometimes more than salary,” said ADP, LLC, Vice President, Future of Pay Jeff Gies. 

“This has driven the need for providing pay choices to workers,” Gies said.

The challenge for employers is closing the gap between the technological tools available on a personal level to deliver experiences instantly, such as ordering dog-walking services via a mobile phone application, and the applications used to pay workers, which have lagged behind, Lee said.

While these other applications are useful and significant, one would argue that “the experience one has with pay is much more important,” Lee said.

Gies echoed the disconnect by noting that one retail chain recently reacted to the customer desire during this health crisis for a contactless pay option, which was implemented, while their workers were still getting paper pay statements, which could potentially carry virus and disease.

Additionally, employers need to recognize there remains a large segment of workers that, prior to the pandemic, had not adopted digital payment methods. These workers are having to, overnight, modify their behavior, and this is uncomfortable for them. Gies asked: “How can employers help people make that transition?”

Both DailyPay and ADP have safe, secure programs that “empower, enable and put the employee at the center,” Lee said. As employers make the transition to digital and on-demand pay quickly, they can be assured that both providers are compliant and are the “gold standard for how we protect that data and keep it secure, and we have redundant systems,” Gies said.

DailyPay, through its pay experience platform, PayEx™ seeks to “leverage technology to be sure that folks are compliant,” while staying behind the scenes, Lee said.

A key issue frequently overlooked before the pandemic struck, but now is a need-to-have for employers, is providing a “core foundation of financial wellness,” Gies said.

As employers scramble to rehire workers and those workers look to climb out of a period of financial hardship, it’s important for employers to provide “simple, real-life, easy ways to put more money back in the pocket” of workers that are living paycheck-to-paycheck, Lee said and “ADP has developed the right kind of programs to fill this need for their clients.”

DailyPay users have access to savings tools in the app, so when they look to access pay, workers can think “I’m getting my pay, and as I’m getting my pay, I’m thinking about my savings,” Lee said. “It has to be easy and native  . . . and in a way it has to be connected to your pay.”

Go to thesource-dailypay.com to hear or watch the entire podcast, and to access previous podcasts that discuss on-demand pay, also known in the industry as early wage access. 

For additional resources on this topic, see:

Helping Frontline Heroes Amid the COVID-19 Pandemic

Despite the tragic loss of millions of U.S. jobs as a result of the COVID-19 pandemic, there are a number of key industries that are powering today’s economy, providing access to essential services in ways no one ever dreamed possible. While some industries, such as restaurants, entertainment, and travel and leisure have been shuttered for the foreseeable future, others, such as grocery stores, hospitals and health care, and cleaning/facilities services have increased their hiring efforts due to an unprecedented need for additional frontline workers.  

There is even growth in industries that we never could have envisioned. For example, there is an increased need for workers in janitorial services to perform nightly deep cleanings in supermarkets and hospitals. There is a boom in the medical waste industry as hospitals, nursing homes and other healthcare facilities grapple with the need to safely and securely handle waste from the most contagious virus ever to infect an ever-growing number of people. 

Industries that are hiring frontline workers, those who are keeping our economy going, need to be ever mindful of the health and safety not only of the customers whom they serve, but their workers who are themselves at risk of contracting coronavirus from an infected customer or coworker. We’ve seen many of these customer-facing industries offering bonuses, raising their hourly wage and paying sick leave to workers who test positive for the virus. Some, like Walmart, are taking employees’ temperatures as they arrive at work and sending those who are sick home to quarantine, with paid sick leave for 14 days. 

As this pandemic unfolded, we at DailyPay started to think about what we could do to support these frontline workers in our partner companies, including Kroger, Parker’s Kitchen, Leevers Supermarkets, Dave’s Markets and Loop Neighborhood, and so many others.

In an effort to support financial flexibility during the pandemic, the first thing we did was to eliminate next-day ACH transfer fees for employees of our partner companies to allow them to access their earned income at no cost. At that time, our data reveal that 43% of employees using DailyPay were accessing their pay early for COVID-19-related expenses, a 400% spike in number over three days.

Next, we released the DailyPay Workforce Index that analyzes data based on changes in hourly staff and working hours across four different industries — hospitals, call centers, supermarkets and Quick Service Restaurants (QSR). This index was created to educate and inform media about the disruption caused by COVID-19. The index showed changes that differ greatly by industry, verifying that while some industries are reducing hours or workforce, others are, in fact, staffing up to meet demand. 

Several new partners asked for an accelerated, ahead-of-schedule launch of DailyPay for their employees, and we made a commitment to get them, and any other company that wants to offer DailyPay, up and running as quickly as possible.

The material changes in business and unexpected business needs that we have seen thus far are likely just the beginning. We are proud to be partnered with such forward-thinking companies during this challenging time and can’t wait to move into the next phase of the pandemic and rebuilding the way our world of work re-emerges.

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The Novel Coronavirus Pandemic Demands Flexibility

The COVID-19 pandemic has evolved rapidly, with each day bringing an onslaught of news reports covering the spread of the novel coronavirus, promising new treatments or providing updates on how long social distancing measures will stay in place. The coronavirus crisis has spurred a global lockdown, and we have had to adjust our entire lives accordingly. 

This is a rapidly evolving situation — one that has demanded flexibility from all of us, especially when it comes to pay. 

One example? The government’s recent mandate requiring employers to halt wage garnishments for student loan debt. This means that the net pay for many workers will increase. And for some, this could be pretty dramatic, potentially even impacting an employee’s eligibility for on-demand pay programs. As payroll teams (who are already overstretched due to this crisis) are forced to quickly adapt, DailyPay, the leading provider of the daily pay benefit, is capable of changing with you. 

A Closer Look: The Power of DIA During COVID-19

One of DailyPay’s core differentiating features in the on-demand pay space is our Dynamic Income Algorithm (DIA). DIA creates a personalized profile for every DailyPay user, which accounts for differences in their net pay profile. This profile informs what we call the “advance rate” (or net-to-gross pay ratio). DailyPay is unique in that we are the only vendor that creates this personalized profile for each employee.

During a time when payroll teams are already overworked, DIA helps to lighten their load. Because DIA is dynamic, it automatically adjusts to this change and is able to increase the amounts available to affected workers, resulting in more take-home money to provide for themselves and their families during this crisis. 

The DailyPay advance rate is dynamic, meaning that as the pay profile of an employee changes, the advance rate will change to accurately reflect the net pay owed to the employee.

This enables the user to enjoy continuous, full access to the product, even if they have a non-standard pay profile (e.g., garnishments, benefits in arrears). The dynamic advance rate accounts for these unique employee particulars by adjusting the amount made available to the employee in the Available Balance, such that the amount made available to the employee will be net of these adjustments.

Want to learn more? Schedule a demo

To face a crisis such as this, the importance of quickly responding to change is of paramount importance. Individuals, organizations and technology have had to quickly adapt in order to strike the right balance between slowing the spread and working to maintain some sort of normalcy (healthcare workers, grocery store employees and pharmacy workers — we salute you). DailyPay is proud to provide a pay experience solution to help companies and their employees during this difficult time.

When selecting an on-demand pay provider, it’s important to choose a vendor with the experience and ability to serve you and your employees in any situation. To learn more about DailyPay and how our robust pay experience can benefit your company, click here

The Quarantined Economy: Stress Reduction Hacks

As an organization, we are facing the same COVID-19 challenges as every other organization. To help DailyPay employees who are quarantined in their homes, we have come up with some ideas to help them cope with our new normal. We have conducted some research around these ideas as well and want to share them with you. We hope that they will be beneficial to you as well.

Creating and practicing a meaningful self-care routine is not just about taking luxurious bubble baths. Self-care is a commitment to maintaining your physical, spiritual, mental and emotional well-being to reduce your stress levels. During these trying times of quarantine and chaos, self-care is more important than ever. Tuning in to your needs will help you control your anxiety, avoid burnout and maintain a positive attitude. Here are 5 hacks to keep your stress levels at bay:

Test out new recipes

With all the chaos going on around you, preparing food for yourself and your loved ones can be a very grounding experience. Not only is it necessary for your survival, but it is also a tactile, sensory experience that many people find immensely calming. This decadent lemon pasta is simple to make and only includes a few ingredients that are probably already in your kitchen. Want to smell something warm and delicious simmering away all day while you’re stuck at home? Break out your slow cooker and try one of these warm and comforting recipes.

Experiment with aromatherapy

Stop rolling your eyes at me! Chances are you have scented candles, incense or some form of essential oil laying around the house. It may sound small or frivolous, but these things can add a warm ambiance to your space, as well as soothe anxiety. Beyond just the sensory experience, this response is also biological, because the parts of your brain that process smell are directly linked to the parts that take in information and process emotions. Check out this guide for more information on scents that can help improve your mood and help you be more productive.

Beautify your space

It’s the perfect time to channel your inner Marie Kondo and tidy up. Even something as simple as cleaning that part of your home that seems eternally messy can help you feel productive and in control while all this madness is going on around you. Organizing the avalanche in Tupperware cabinet can make you feel so much more organized and in control. If you’re feeling especially ambitious and want to totally redecorate, check out this guide for sprucing up your home with things you already have inside. Saving a ton of money by not going out? This might be a great time to order online and invest in some new decorations and home furnishings. 

Treat yourself to something special

Again, it doesn’t have to be expensive. Something as simple as your favorite baked good or an amazing cup of coffee can make your day if you take the time to truly savor it. If there’s room in your budget, treat yourself to one or two gifts from your Amazon wish list. Whether it’s comfy new pajamas for all the time spent indoors or new kitchen gadgets for your house-bound culinary exploits, “retail therapy” can be a very positive form of self-care. Just make sure you’re sticking to your budget and shopping within your means.  

Find time for body maintenance and pampering

Finally, the bubble bath section! If a soapy soak isn’t your thing, an at-home mani/pedi might help you feel a little more like yourself. You can also try a homemade face mask customized for your skin type. There are tons of self-massage techniques to help you relieve some of the stress and tension in your body. A free at-home yoga class is a great way to incorporate movement into your day, even if you have limited space or don’t own any workout equipment. If you want to branch out even further, take some time to learn about ayurveda, one of the sister sciences of yoga, and begin your day with a few of these ayurvedic morning rituals to feel totally revitalized.

These ideas just make good logical sense. Another thing that makes good logical sense is allowing employees to access their earned pay every day. If you want help with this, please reach out to us here.

In addition, DailyPay recently hosted a webinar in which we discussed what we are doing as a company to help our remote workforce stay connected and engaged through this unprecedented time. Some of what we are doing may help your company as well.

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What employers and businesses need to know about the recently passed $2 trillion coronavirus stimulus bill

Matthew Kopko, VP of Public Policy at DailyPay summarizes the CARES Act and the impacts it will have on your business and its employees. This on-demand webinar will provide:

  1. Easily understand the specifics about the largest financial relief package ever passed in history
  2. Determine how both small and large employers are able to get loans, and which loans can be forgiven
  3. Be aware of additional provisions on tax credits and paid leave requirements including payroll tax deferral
  4. Take away a solid understanding of how the CARES Act will impact your employees or recently let-go employees directly

NOTE: None of the content on this page or in this video is intended to be legal or tax advice, and should not be relied upon as such. You should consult with your own attorneys, accountants and advisors.

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We’ve summarized some of the video contents below:

Coronavirus Aid, Relief, and Economic Security Act

  • The bill itself is technically called the Coronavirus Aid Relief and Economic Security Act or the CARES Act. It’s also known as HR 748.
  • It’s also called Phase 3 of the coronavirus response legislation (phases 1 and 2 covered immediate government disaster relief and paid leave restrictions)

Coronavirus Aid, Relief, and Economic Security Act: Overview 

  • But first let’s go over the CARES Act. This is the overview of the general sections of the CARES act. Particularly, we’ll be focusing in this segment on Titles I, II, and IV because they include the provisions that are most relevant to employers and contain the marquee programs relevant to the private markets. There are additional sections of the act, for example, Title III, which includes a lot of information on improvements to the health care system in the fight against the coronavirus 
  • And also Title V, which has a coronavirus relief fund, including grants to hospitals, airlines and other types of programs. There are other miscellaneous provisions as well but, again, we’ll be focusing on the loan and other programs that are relevant to employers and workers. 
  • So first let’s get into Title I.

Title I: Keeping American Workers Paid & Employed Act: Overview 

  • Is commonly called the small business loan section. It’s also called the Keeping American Workers Paid and Employed Act 
  • This is the marquee $350 billion loan program and, in general, the goal here is to provide loans to small companies so that they can keep operating and keep their workers on payroll during this crisis. 
  • And to effectuate that, not only is it a favorable government loan, but it is a forgivable loan to the extent you keep your employees hired, or rehire them by June 30th, and use loan proceeds to pay eligible expenses like payroll, rent and utilities. 
  • Another interesting feature of this program is the fact that it’s not issued directly by the government, but instead through a partnership with the private financial markets. So, instead of applying to the Small Business Administration, you would apply to one of many major local banks to be able to get access to this loan program.

Title I: Who is Eligible

  • First let’s talk about who is eligible. Again, this is called the small business loan program, so generally small businesses are eligible. This is defined as businesses that generally employ 500 or fewer employees.
  • One major exception, which impacts a particularly hard-hit segment of the economy during this crisis, are hotels and restaurants and similar businesses who classify themselves under NAICS Code 72. For them, even if they have more than 500 employees, they will still be eligible to the extent that they have no more than 500 employees in any single location.

Title I: Loan Size

  • The general rule of thumb under the small business loan program in Title 1 is that you’re entitled to a loan of approximately 2.5 times your average prior monthly payroll capped, in any event, at $10 million.
  • For most businesses, it’s defined as the average monthly payroll for the 12 months prior to when the loan is made. There are exceptions for seasonal employees or recently created businesses that have different time periods for measuring prior average monthly payroll.

Title I: Borrower Requirements

  • Borrowers requirements are very minimal and there is explicit increased eligibility in the Act itself but borrowers will need to be able to certify in good faith that the loan is needed because of the coronavirus pandemic; that the funds will be used for eligible loan purposes for payroll, mortgages, lease rental payments and utilities; that they do not have any double-dipping applications pending before the government; or that they are not receiving any duplicate payments. 

Title I: Eligible Use of Proceeds

  • If you’re successful in getting a loan, there are only certain types of things that the loan can be used to pay. The most critical item is, of course, payroll costs. 
  • A couple things to note about the payroll cost requirements are that they include all forms of employee compensation, not just wages. So, that would include salaries, commissions, severance, leave or other types of compensation arrangements. But for any individual employee they are capped at $100,000 per year, on a prorated basis. So, that means to the extent you have employees earning more than $100,000 in a given year, you are able to use the proceeds to pay their compensation up to $100,000 and, after that, they would not be an eligible expense with the loan proceeds. 
  • Additionally eligible use of proceeds include certain group benefits like healthcare, interest on any mortgages related to the business, rent payments for your office space or other facilities, utilities, and, also important, interest on any existing debt obligations. 

Title I: Loan Forgiveness/Deferral

  • Most critical to this loan program is the concept of loan forgiveness. In essence, if you are able to manage this loan process effectively, either a large portion or potentially all of the loan you get will be able to be forgiven by the federal government and you will have no liability to repay the loan.
  • Loan forgiveness is provided under the Title I program for eligible costs of payroll, interest on mortgages, rent and utility payments. Again, the restrictions on $100,000 per employee apply, but to the extent you are paying payroll, interest, rent or utilities, and you can document those payments, you are able to get forgiveness to the extent of those payments and potentially get forgiveness of the entire loan. 
  • If you fire people during this process and your average FTEs shrinks during the period you have the loan and afterward, the amount of forgiveness will be reduced relatively to the number of employees you have currently, as opposed to the number of employees that you had right before the pandemic hit. Similarly, to the extent you cut wages of your employees by more than 25%, you also have reduced forgiveness benefit. 
  • The program also includes loan deferral. Applicants are presumed to be entitled to at least a six-month deferral of all payments, fees, principal and interest. That can be expanded up to 12 months, but it’s going to be at the discretion of the Small Business Administration and your lender.

Title I: Documentation for Loan Forgiveness

  • When it comes time to seek the actual loan forgiveness, be sure to keep good records, because your lender and the government will require documentation showing how many employees you have and pay stubs and pay rates to ensure that the payroll payments qualified under the restrictions under the loan program. So, you’ll be able to keep your IRS pay stubs and other type of critical payroll documentation to show payroll payments.
  • Additionally, to the extent there are other qualified expenses, like rent, mortgages or utility payments, you will have to document that as well. On top of all of this, a business executive will have to certify that the documentation is true and correct and not fraudulent, and that the loan was actually used to make eligible expenses such that forgiveness is legitimate.
  • As always, the government provides a provision that allows the government to request any additional information, and this case is no separate. 

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Title II: Relief for Workers Affected by Coronavirus Act

  • Title II is the section that covers individual benefits and business tax relief. As you’ll see in Subsection A and B, these are some of the most well-known programs that have been reported by the press. They include the $1200 and $2400 checks given to individuals and also the unemployment insurance top off.
  • Through the coronavirus stimulus bill, the federal government is expanding unemployment insurance by adding a federal increase of $600 per week on top of state benefits. 
  • Additionally, since most independent contractors and gig workers are typically ineligible for unemployment assistance, this bill allows such contractors to be able to be eligible for assistance through the unemployment insurance provisions of this bill. 
  • In Subsection B, large numbers of Americans will be able to get $1200 checks, per individual, and $500 checks, per child, as critical spending money to get them through this crisis. 
  • To the extent you earn $75,000 or less, you will get the full check and the check will be phased out between $75,000 to $99,000, such that anyone earning more than $100,000 will not be entitled to get any of these payments. 
  • There are also other tax provisions that have been modified through this act that are beneficial to the individual, including educational assistance provisions and relaxation of charitable contribution restrictions. 

Title II, Subsection C: Payroll Tax Credit

  • To the extent you’re impacted by the coronavirus pandemic, you’ll be able to get a credit of the amount of 50% after the first $10,000 per employee for employees that are impacted by the crisis. If you have less than 100 employees, all employees will be eligible, but if you have more than 100 employees, only employees that are being paid but are unable to work, will be eligible for this type of credit. 
  • To ensure against double dipping to the extent you take advantage of the forgivable Title I loan program, you will not be eligible for these tax credits. 

Title II, Subsection C: Payroll Tax Deferral 

  • The bill also includes a payroll tax deferral for the tax year 2020. To the extent you’re an employer and paying payroll taxes, you will have no tax liability for payroll taxes in the year 2020, and they will instead be paid in 2021 and 2022. That means that 50% of the payroll tax obligation, instead of being due for the tax year 2020, will be due in 2021, and the other 50% will be due in 2022. 

Title II, Subsection C: Other Provisions

  • There are also other tax provisions that have been modified under this Title II of the stimulus bill and they include suspension of loss limitations for the Tax Cut and Jobs Act, which will impact your net operating loss provisions and mechanisms, and also a change to the corporate AMT. 
  • There are also other technical changes, but they are not the subject of this summary 

Title IV Coronavirus Economic Stabilization Act of 2020

  • In addition to the $350 billion small business loan program, there is a $500 billion loan program intended for larger employers. About $50 billion of that loan program is specifically earmarked for airlines, cargo carriers and national security-sensitive companies, or more commonly thought of as the Boeing exemption. 
  • The other $450 billion of the loan program is available generally to larger businesses.
  • This is administered by the Treasury Secretary in coordination with the Federal Reserve and there is no loan forgiveness. 
  • Eligible borrowers under the large loan facility will be typically U.S.-domiciled companies with employees that are principally based in the United States.
  • The loan term will be not more than five years and there are very favorable interest rates at which you’ll be able to get the loan. For the special industry loans, that is national security and airlines, the government will also require warrants to be issued in the government’s name.

Title IV: Restrictions for Borrowers

  • There are lots of restrictions that come along with taking advantage of this loan program. 
  • Firstly, you’re not able to issue dividends or stock buybacks or other capital distributions for the duration of the loan and for a full year after.
  • Secondly, you’re going to be obligated to maintain at least 90% of your existing work base as, again, the main purpose of this entire program is to ensure that workers are not fired during this crisis. 
  • You’re also not allowed to transfer proceeds of the loan to any offshore affiliate, and there are limitations on compensation for high-paid employees and very high-paid employees. 
  • There are even further restrictions to the extent you’re taking advantage of the very low interest rate loans. In addition to having to maintain 90% of your workforce you’ll have to agree to commit no outsourcing, not just for the term of the loan but for two years after, and then, importantly, you’re not allowed to abrogate any labor agreements and to the extent any labor dispute or unionization efforts spring up, you will have to maintain neutral, not just for the period of the loan but again for two years thereafter. 

Title IV: Additional Airline & Banking Provisions

  • There are special provisions that we won’t cover in detail that cover specifically the airlines and banks. 
  • Airlines, for example, are required to maintain air service in smaller communities and healthcare supply chains. 
  • There are a variety of changes to bank rules that allow for flexibility during this crisis. 

Title IV: Consumer Forbearance

  • Title IV also includes very important and valuable consumer forbearance rules. 
  • For customers of banks who receive loan modifications or forbearance, they will not get adverse credit reporting.
  • There is also a foreclosure moratorium and forbearance on individual mortgages, which is not forgiveness of mortgage payments, but it is forbearance, and there are more restrictive and smaller forbearance for multifamily properties. 
  • There is a 120-day moratorium on evictions, so that people who are behind on rent payments are not going to be kicked out of their apartments during this crisis. 

Phase II Bill: Coronavirus Paid Leave Requirements

  • We’d also like to touch briefly on the paid leave requirements passed under the previous phase of the legislation also called Phase II.
  • This was technically called the Families First Coronavirus Response Act and was passed several weeks ago and is becoming effective, April 1, 2020. 
  • It generally has two paid leave requirements: 1) Emergency paid sick leave and 2) Emergency Family and Medical Leave Act expansion. 
  • We’ll also be covering in this section one example of state laws – New York, though state reactions to the crisis vary and obligations for leave vary by state. 

Coronavirus Paid Leave Requirements: Emergency Paid Sick Leave

  • Emergency paid sick leave covers employers with fewer than 500 employees, who have employees who are not able to work, and who are meeting one of the six technical coronavirus-related criteria, for example, if you have to take care of your children because school closings or childcare closings have occurred.
  • The paid sick leave is limited to 80 hours of paid sick leave per full-time employee and for part-timers based on recent work. So 80 hours or the equivalent of two weeks. 
  • For those directly quarantined by COVID-19, their regular required rate of up to $511 per day will have to be covered. 
  • For other people in different categories, a smaller amount, up to $200 per day, will have to be covered. And although it is controversial, healthcare employers are generally exempted from this requirement due to the work requirements in healthcare facilities at this time.

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Coronavirus Paid Leave Requirements: Family Medical Leave Act

  • Family Medical Leave Act Expansion generally covers employers with fewer than 500 employees and for those employees who are not able to work and who now qualify for the Family Medical Leave Act, having to care for their children because they’re out of school. 
  • Employees can be eligible for up to 10 weeks of Family Medical Leave following the first 10-day leave period provided for in the previous slide. 
  • The required amount to be paid under this part of the bill is generally 2/3 of the regular pay rate up to $200 a day and $10,000 in the aggregate. 
  • And again, healthcare employers are generally exempted from this requirement. 

Coronavirus Paid Sick Leave Requirements in New York 

  • New York also passed its own leave modification requirements in the middle of March. 
  • It covers almost all New York employers, but those who are subject to a mandatory or precautionary order of quarantine who cannot work. 
  • New York employers with more than 99 employees must pay 14 days of paid leave to covered workers. 
  • Smaller employers have to cover 5 days of paid leave at a regular pay rate.

Key Takeaways 

  • Small and some not so small businesses can now get multi-million dollar loans from the federal government and potentially some, or all, of those loans can be forgiven. 
  • Large employers are also able to get loans, but they must maintain their workforce and there is no forgiveness. 
  • There are a variety of tax credits as well and a payroll tax deferral for employers. 
  • This bill also includes the well-known stimulus check provisions that provide direct checks to individuals and substantial grant programs for hospital, airlines and other industries. 

About DailyPay

  • DailyPay is a major way to preserve employee financial health and wellness in the long and short term. 
  • By providing our on-demand pay benefit, partners across the country have been supporting their employee financial wellness and increasing retention of their employees. 
  • Employers across the economy love being able to provide their employees the benefit to be paid daily instead of once or twice a month when it’s convenient for their employer.

If you’d like to be able to offer DailyPay to your employees, and take advantage of all the fee waivers and other benefits we are offering to workers during this crisis, please reach out to our team. We’d love to work with you and we’d love to bring you and your employees into the DailyPayNation. Thank you very much.

COVID-19 Notice: DailyPay has waived all next-day transfer fees so that employees can access their earned and unpaid earnings when they need it, until further notice. We are committed to getting your company up and running as quickly as you’re willing to move, so reach out to our team at joinus@dailypay.com today.

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