During this coronavirus pandemic, many businesses, large and small, have been faced with temporary closures which they hope will benefit their businesses over the long term. When a temporary shutdown occurs, there are a number of protocols that must be followed advising both employees and customers of the how’s and whys of the closure. Employers are responsible for performing a number of tasks when temporarily closing down businesses and in preparation of their reopenings down the road.
EMPLOYER MUST DO TASKS
- Notifying Your Employees – The first and most important task to be performed by an employer is that of communicating the company closure to its employees as soon as possible. You must notify employees, whether or not they will be laid off, put on a long-term furlough, or having to endure reduced hours. For many businesses, providing employees an option to work remotely from home will help to avoid having to experience a complete shutdown.
- Informing Your Customers, Vendors and Suppliers – In addition to immediately notifying your employees, it is imperative that you send out communications to your customers by posting notices on your company website, your social media pages and/or your business and storefronts. Be sure to routinely post updates as well. Further, you must notify your vendors and suppliers and can do so my letting them know you will have to suspend supplies and inventories temporarily. When sending out these communications, be sure to include in your announcements that your temporary shutdown is related to the ongoing coronavirus pandemic.
- Notify Your Banking Facility – As a result of the current pandemic, there are a number of state and federal loans that are well worth looking into. You should check with your financial advisors to determine which, if any, benefit you. In addition, you may want to talk to your financial advisor about constructive ways you can cut costs so as to assist with putting a whole new budget in place.
- Continue Filing Employment Data – Even though you are in the middle of a temporary shutdown, it is mandatory that you continue to file all your typical employment and payroll forms identifying all applicable changes which have taken place.
- Provide Unemployment Data – If you are forced to layoff employees or to furlough some of your employees as a result of the temporary closure, be sure to provide your employees with all the unemployment and COBRA info they need.
- Adhere to All State and Federal Regulations – If a temporary closure becomes necessary, it is up to you, the employer, to research, understand and follow any laws and regulations, whether state or federal. The laws that will typically come into play at a time like this will give focus to unemployment, payroll, COBRA, and PTO time that employees have earned. In addition, you should perform consistent research in your efforts to stay atop all that is going on with the pandemic so you can communicate regularly with all those parties that have been affected. Though you may have had to temporarily close your company doors, the services you provide and projects you perform may not come to a halt.
- Keep Efficient Detailed Records – During your temporary shutdown be sure to keep very detailed records about the closure dates, the employees that are laid off or furloughed, and any transactions and activities that may occur during the shutdown. These records will be essential if you find yourself in need of a business loan or other credits that may be available to you during this pandemic.
THE DEDICATED PROFESSIONALS YOU CAN TRUST
The team here at Tax Alternatives is committed to providing our valued clients with only the highest quality products and services this side of the state. Whether you find yourself faced with a temporary shutdown and are in need of business advice, or are in need of tax preparation, bookkeeping and accounting, payroll services or even QuickBooks training, we are the team for you. Our professionals stand ready to meet your every. Don’t delay. Give a shout out to one of our team members today!
