Payroll Protection Program: Household Employers EXCLUDED
HomeWork Solutions has received many calls about the CARES Act stimulus bill and the Payroll Protection Program offering forgivable loans to employers who retain their employees. Unfortunately, the US Small Business Association (SBA) has just issued final terms of the program. Notably, household employers are excluded from Payroll Protection Program eligibility. The document notes that, “The Administrator, in consultation with the Secretary of the Treasury (the Secretary), determined that household employers are ineligible because they are not businesses.”
This is obviously a disappointment, as the financial relief offered in the Payroll Protection Program would be of great benefit to household employers and their employees in this time of need. We know that many families are agonizing about their valued nannies and senior caregivers. Reduced or delayed family incomes means the employers themselves cannot afford this indefinite expense. They worry if they stop paying their nanny now, she may not be available to return when they are called back to work in a few weeks. It’s a difficult time all around, and one more impediment to a fast return to “business as usual.”
We are reaching out to members of Congress and will work with our partners in the household employment space to seek corrective action. We encourage all of you to contact your representatives and ask that household employees not be overlooked yet again.
It is past time that the 2.5 million nannies, caregivers, housekeepers, and other domestic employees who aide our families each day are given the respect they deserve and the same assistance afforded the rest of the American workforce.
While we work to bring about this change, please consider utilizing benefits of the Families First Coronavirus Response Act (FFCRA), such as tax credits for paid sick and paid family leave offered to your employees, as well as Unemployment Benefits for which your employee may be eligible if furloughed or laid off.
Please be aware that unemployment checks are well published to being 4 – 6 weeks behind processing. Families can do their part by responding QUICKLY to employer surveys so as not to further delay benefits to your valued former employees.
You can watch our short summary of FFCRA , and you can always reach our helpful staff at 800.626.4829 with questions.