COVID-19 Employer Advisory Session

Jason ChepenikSenior Vice President, Retirement + Wealth

David PittardManaging Principal,OneDigital Georgia

David HughesHR Consulting Practice Leader,

OneDigital Georgia

Bill CarewChief Operating Officer

ONEDIGITAL’S CORONAVIRUS ADVISORY HUB

Visit onedigital.com/coronavirus/ for resources on how to monitor, prepare for and respond to any healthcare, safety orworkplace issues that stem from the coronavirus (COVID-19).

Business Guidance Around Maximizing Loan Forgiveness

Kamala BoydVP of Small Business

Client Services, Enterprise

Business must decipher how to survive and thrive …

• Navigate implications of cash relief for individual citizens, a broad lending program for small business and targeted relief for hard-hit industries.

• Interpret eligibility rule for businesses by industry, size, business structure, employment status, etc.

• Forecast how relief and economic stimulus workto stabilize their business and support their people.

• Implications of stimulus guidelines on an employer’s initial plan of action.

• Administer and track loan relief programs and loan forgiveness.

ONEDIGITAL

Update on PPP and other Business Relief Programs

Update and Emerging Trends

PPP UPDATE:

• Initial $350B in PPP funds fully dispersed and SBA announced they were not taking new applications

• Secondary round of up to $321B passed Tuesday 4/21 heading to House as part of $484B follow up bill that includes money for Economic Disaster loans ($60B), hospitals ($75B) and testing ($25B)

• “Loan Forgiveness” provisions and related workforce management strategies will be the next big wave of interest for many borrowers

• Borrowers have 10 days to access the loan proceeds and the 8-week window starts ticking when funds are accessed• 75% of funds must be spent on payroll related expenses to

be considered for forgiveness

• Forgiveness reduced by reduction in headcount

• Loan balance carries 1% interest rate for 2 years

ONEDIGITAL

•59 pieces of content in 2 weeks (blogs, templates, briefs, videos)

•4 Advisory Sessions / 5 Podcasts

•=68 Piece of content produced and pushed live since 3/16

Additional Programs Available to Small Employers

• Economic Injury Disaster Loan Assistance Program:• Helps alleviate the economic injury caused by the

Coronavirus (COVID-19) to include temporary loss of revenue.

• Economic Injury Disaster Loan Emergency Advance:• An emergency grant advance of up to $10,000

that pays in as little as three days.

• Employee Retention Credit (part of the CARES Act):• Allows 50% credit against payroll taxes for the first

$10,000 in wages paid to employees between 3/13/20 and 12/31/20. Not available in conjunction with Paycheck Protection Program.

Access the Small Business Administration's website at www.sba.gov for a variety of resources available to small business employers

Business Strategy Drives Workforce Strategy

Three Potential Workforce Management Strategies:

1. “Growth Capital”: Preserve cash (including loan proceeds) to fund post-crisis growth strategy

2. “Employee Stimulus”: Maximize payments to employees to ease economic pain and maximize employee engagement

3. “Operating Grant”: Optimize workforce to maximize forgiveness while minimizing expenses

Loan Forgiveness is a Potential Benefit for Borrowers, but Long-Term Business Strategy Remains #1 Focus

ONEDIGITAL

Loan Forgiveness is an option, not the primary purpose

ONEDIGITAL

Minimal Loan Forgiveness

Maximum Capital Preservation

“Employee Stimulus”*

“Growth Capital”*

“Operating Grant”*

0%

0%

100%

100%

Business Strategy DrivesWorkforce Strategy

ONEDIGITAL

Workforce Planning • How much work do we have

today?• How much work will we have in

30-60-90-120-180 days?• How can optimize our current

workforce and be better position for growth?

• What is the financial hardship for employees via unemployment vs. return to work?

Business Continuity Planning• What does our cash flow

forecast look like for 30-60-90-120-180 days?

• How well positioned are we to emerge from national shutdown?

• How long will it take to replenish “work orders” or the equivalent?

• How long will it take for my customers and their customers to replenish orders?

• What is our operating plan to replenish orders?

• How much will that plan cost?

Employers Will Be Forced To Remain Agile ...

… Shifting from Tactical to Strategic With Urgency

This image is the sole property of OneDigital. Any duplication, unless otherwise stated

will be considered a violation in this regard. All rights reserved.

Support for Businesses

ECONOMIC INJURY DISASTER LOAN AND LOAN ADVANCE (EIDL)

• $10 billion in grants for U.S. businesses to pay for immediate expenses

• Currently available online • Up to a million small businesses eligible for

immediate emergency advance up to $10,000 in cash with no payback

PAYCHECK PROTECTION PROGRAM

• (Originally) $349 billion available to U.S. for-profit, 501(c)(3), and 501(c)(19) businesses with fewer than 500 employees

• Available 4/3- 6/30/20 • April 3= small businesses & sole props• April 10=self-employed and independent

contractors

What loans are available to me and when can I get them?

Support for Businesses

EMPLOYEE RETENTION CREDIT*For Employers Subject to Closure due to COVID-19

• Available to all sized businesses whose (1) operations were fully or partially suspended or (2) gross receipts declined by more than 50% since prior year

• Credit for 50% of first $10,000 of wages per employee in a calendar year

• If more than 100 full-time employees, must be shutdown to qualify. If less than 100 employees, can be whether open or shut-down

DELAY OF PAYMENT OF EMPLOYER PAYROLL TAXES PROGRAM

• Employers and self-employed may defer taxes through 12/31/20

• Applies to Social Security tax (6.2%) but not Medicare tax

• Delayed taxes must be paid back:• 50% of delayed taxes are due by 12/31/21• 50% of delayed taxes are due by 12/31/22

What other payroll credits can businesses get and when?

Employers Will Be Forced To Remain Agile ...

… Shifting from Tactical to Strategic With Urgency

This image is the sole property of OneDigital. Any duplication, unless otherwise stated

will be considered a violation in this regard. All rights reserved.

Resources

Your resource for navigating business and workplace challenges arising from the coronavirus pandemic

Gain access to resources to help you monitor and respond to this rapidly evolving situation:

• Cutting Edge Health Plan Cost Impact Tool

• On-Demand COVID-19 Employer Advisory Webinars

• Employer FAQ

• Benefits, HR and Compliance Guidance Tools

onedigital.com/coronavirus/

Helping Employers Make the Most of a $2 Trillion-Dollar Economic Lifeline

Mitigate risk and position your organization for financial stability and future growth post-pandemic:

• Business Relief Calculator

• CARES Act FAQ

• Information and latest updates on SBA’s Paycheck Protection Program

• Articles, downloads and other resources to help you understand and communicate the current economic landscape

onedigital.com/stimulus-guidance/

CORONAVIRUS ADVISORY HUB STIMULUS GUIDANCE HUB

ONEDIGITAL CORONAVIRUS ADVISORY

Thank you!