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Securing Your Finances During COVID-19

COVID-19 Support for your:  Finances  |  Employees  |  Operations

The priority is to keep your business open, and that requires having sufficient funds in place. Take advantage of applicable loan options, business credits, and other financial programs that can help you at this critical juncture of the coronavirus pandemic.

PPP and Loan Forgiveness

A Paycheck Protection Program (PPP) loan can help you keep employees on payroll, bring back those you furloughed, and cover certain overhead costs. PPP loans may be forgiven if funds are used on eligible covered costs.

A business owner using a ppp loan forgiveness estimator

Employee Retention Tax Credit

A refundable federal tax credit against employer payroll taxes for businesses that complied with government order to partially or fully suspend operations, or recognized significant reduction in gross receipts but retained their employees. Businesses can only claim the credit on wages that are not forgiven or expected to be forgiven under the Paycheck Protection Program (PPP).  

Eligible employers can:

Under the CARES Act: Claim the credit against 50% of qualified wages/health plan expenses up to $10,000 per employee annually for wages paid between March 13 and Dec. 31, 2020.

Under the Consolidated Appropriations Act, 2021: Claim a credit against 70% of qualified wages paid up to $10,000 per employee per quarter for the first two quarters of 2021.

Under the American Rescue Plan Act of 2021: Claim the credit against 70% of qualified wages up to a $10,000 limit per employee per quarter for all of 2021. Under this law, certain startup businesses — those started after Feb. 15, 2020 that were forced to shut down due to government order — may be allowed a credit of up to $50,000 per quarter.

The deadline to claim this credit is Dec. 31, 2021.

The law also reverses IRS guidance to allow a tax deduction on PPP forgivable expenses and makes it effective as of the enactment of the CARES Act on March 27, 2020.

An employee working at a grocery store

Payroll Tax Deferral Period

Employers can defer payment of applicable employer payroll taxes (employer portion of Social Security) incurred from March 27, 2020 – Dec. 31, 2020.

How deferred repayments are split and paid

  • 50% due Dec. 31, 2021
  • 50% due Dec. 31, 2022

Deferring payment of employer payroll taxes

Employers can now defer or continue to defer payment of the employer share of Social Security taxes even after PPP loans are forgiven.

Looking at the payroll tax deferral period

Other Funding Options

You and your accountant might determine there are better courses of action to obtain financing based on your business and industry needs.

SBA loans

Small businesses that don’t qualify for traditional small business financing may find other opportunities through SBA loan programs.

Main Street Lending Program

Established by the Federal Reserve to support lending to businesses that were in sound financial condition before the onset of COVID-19.

Business lines of credit

Monthly payments and interest are determined based on how much of the open line of credit you use.

Term loans

Depending on the amount financed, loans can be either short-term or long-term, and can generally be secured from any lender.

Paychex Promise

Get the ultimate peace of mind for your business — payroll funding services to help you pay employees during and after the pandemic. 

Payroll Protection

We provide you the flexibility to extend the collection of payroll funds from your bank account by up to seven days without interruption of services or insufficient fund charges.

Business Credit Service

Paychex sends payment history to credit bureaus with the goal of building your business credit file and improving your ability to secure attractive financing terms.

We have solutions that can support you during COVID-19, and beyond

Live and recorded webinars

Available in English
Vaccination and the Workplace: Key Considerations
April 7, 2021

Wondering what, if any, role your organization should play in motivating employees to get the COVID-19 vaccine? If you’re thinking about developing a COVID-19 vaccination policy, watch this webinar to learn about:

American Rescue Plan Act Overview
March 24, 2021

The American Rescue Plan Act of 2021 gives many businesses the opportunity for additional relief funding. Watch to learn about tax credit changes, grant programs aimed at restaurants and shuttered venues, an extension of unemployment insurance benefits, COBRA subsidies, and more.

How Paychex Can Help with PPP Loan Forgiveness
March 23, 2021

With the approval of $284 billion in additional funds for Paycheck Protection Program (PPP) loans, more guidance has come out for business owners, including an expansion of eligible costs, an opportunity for a second draw, and availability to also use Employee Retention Tax Credit (ERTC) on unforgiven COVID-19 expenses.

Articles to help business during COVID-19 pandemic

Available in English
Prioritizing Employee Loyalty Amidst the Great Resignation
September 21, 2021
Retaining top talent has been a persistent challenge for many employers throughout the years, but the COVID-19 pandemic has only added complexity. As work arrangements evolve, the priorities and needs of employees are rapidly shifting as well. 
SBA Enhances Economic Injury Disaster Loan Program with Higher Borrowing Limit
September 14, 2021
The Small Business Administration (SBA) announced enhancements to its Economic Injury Disaster Loan Program (EIDL) to further help businesses impacted by the COVID-19 pandemic.
COVID-19 Vaccination Mandates: What Employees Are Thinking About a Return to the Workplace
September 7, 2021
A survey of employees conducted by Paychex and Future Workplace sought responses on vaccination mandates and returning to the workplace with the presence of the COVID-19 delta variant.