Paychex Paycheck Protection Program Report Simplifies Loan Application Process for 250,000 Businesses and Counting
The Paycheck Protection Program, included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, authorizes up to $349 billion toward job retention and other operating expenses to help small businesses continue to pay their workers, despite the financial instability caused by the coronavirus (COVID-19) pandemic. Paychex, Inc., a leading provider of HR, payroll, benefits, and insurance solutions, has packaged the data customers need to quickly apply for the forgivable loan program. Since the Small Business Administration (SBA) began accepting applications on April 3, Paychex has provided 250,000 businesses with its new Paycheck Protection Program report.
Paycheck Protection loans, which are provided through SBA-approved lenders, are available to small business borrowers to cover payroll and other operating costs. Included among the application requirements is specific documentation related to payroll.
“The Paycheck Protection Program offers the financial means for businesses to pay their workers during this time of uncertainty due to the coronavirus,” said Martin Mucci, Paychex president and CEO. “Within days of the CARES Act being announced, we quickly updated our technology platform to provide businesses with a simple and consolidated new report. It includes required payroll information so they can quickly apply for support through the SBA loan program. This is the latest testament to our ongoing commitment to helping businesses get through this challenging time by providing them the support and solutions they need to navigate the impacts of COVID-19.”
“I’m extremely proud of how fast our IT, product, marketing, risk, and service teams mobilized to bring this valuable report to our customers,” Mucci added. “More than 1,400 dedicated service employees from across the country have been working around the clock, from their homes, to ensure our delivery of this critical data package to customers, making this one of the busiest stretches of 24/7 calls, online chats, emails, and social media queries in our company’s history. Nearly 75 percent of the reports were produced proactively and shared with clients we know have faced significant operational and workforce challenges due to COVID-19. Virtually every customer who has requested the report to date has received it, and any customer utilizing our Paychex Flex® platform can log in to run the report when they are ready. Additionally, we’ve already proactively run and distributed 95,000 reports for our non-online customers, should they need them.”
About the Paycheck Protection Program
The Paycheck Protection Program is a federal stimulus program designed to provide quick access to SBA loans for companies with 500 or fewer employees* to assist with payroll and covered operating costs during short-term business disruption caused by the COVID-19 pandemic. A portion of the loan (up to eight weeks of covered costs) is eligible for forgiveness if certain conditions are met. Employers can maximize the amount of loan forgiveness they will receive by keeping employees on the payroll or bringing back workers quickly and by keeping wages above 75 percent of pre-crisis levels.
“The Paycheck Protection Program provides small businesses with a strong economic incentive to bring back laid-off or furloughed workers,” Mucci added. “For many industries, like restaurants and retail stores, lacking the significant funds required to cover employee payrolls during this turbulent time has been one of the most challenging impacts of the coronavirus pandemic to date.”
While Paychex customers can now obtain the required payroll information needed to quickly apply for a forgivable loan, it is important to note that participation in this program may preclude eligibility for other programs. Businesses should consult with an accountant or other trusted financial advisor to understand the best relief initiative for their business.
Businesses can find the application for the Paycheck Protection Program here. For more resources, including an interactive tool designed to help employers better understand this new government funding program, visit https://www.paychex.com/coronavirus-resources.
Note: The information contained within is not tax or legal advice. These issues are complex and applicability depends on individual circumstances. Businesses should consult tax or legal counsel before taking action on any of the items identified above. All data included in this release is as of April 6, 2020 at 12:00 p.m. ET.
* SBA Paycheck Protection loans are also available to sole proprietors, independent contractors, not for profits, and businesses with more than 500 employees under limited circumstances (NAICS code of 72 – Accommodation and Food Services).
Paychex, Inc. (NASDAQ:PAYX) is a leading provider of integrated human capital management solutions for human resources, payroll, benefits, and insurance services. By combining its innovative software-as-a-service technology and mobility platform with dedicated, personal service, Paychex empowers small- and medium-sized business owners to focus on the growth and management of their business. Backed by more than 45 years of industry expertise, Paychex serves approximately 670,000 payroll clients as of May 31, 2019 across more than 100 locations in the U.S. and Europe, and pays one out of every 12 American private sector employees. Learn more about Paychex by visiting paychex.com and stay connected on Twitter and LinkedIn.