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The Missouri Department of Labor & Industrial Relations, Division of Employment Security (Department), announced that employers participating in the federal Paycheck Protection Program (PPP) may, to protect their unemployment insurance (UI) accounts and the Missouri UI trust fund, report PPP wage payments made to employees electronically through a new portal or through their UInteract account.

(Email listserv, May 22, 2020.)

Workers filing for UI benefits are required to report any earnings on a weekly basis, including employer wage payments made under PPP, to avoid being overpaid. Workers who received back-paid wages from their employers for the same time period for which they were requesting UI benefits should report the PPP earnings to the Department as soon as possible by calling +1 573 751 4058 and selecting the appropriate option. A Department UI benefit specialist will assist claimants in reporting PPP earnings.

According to the Department's COVID-19 website:

Question 16: Is there any assistance available to keep my employees on the payroll during this time? What is the Federal Paycheck Protection Program (PPP)?

Answer:?The Federal Paycheck Protection Program (PPP) is a Small Business Administration (SBA) loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis. For more information on which businesses qualify and other questions about this loan visit?sba.gov. For other resources to help businesses, visit the?Missouri Department of Health's page.?

Question 17: I filed a Mass Claim for my employees and have received the PPP loan for those employees.? What can I do now?

Answer:?You will need to contact the Division of Employment Security (DES) by emailing?DOLIR.MassClaims@labor.mo.gov?or you can call +1 573 751 0436. DES will need a list of the employees that you are paying through the PPP loan. You will need to include the start date of when the employees will be getting paid.

Question 18: My employer notified me that they will be paying me through the PPP loan.? Can I choose to receive unemployment instead of a paycheck from my employer?? Can I still collect unemployment??

Answer:?If your employer has chosen to receive the PPP loan to pay employees, you do not have the choice of receiving unemployment benefits rather than the paycheck from the employer. If your employer has notified you that you will be receiving paychecks through the PPP loan, you must report your gross earnings for the week.?If you are being paid by your employer through the PPP and the amount is greater than what is allowed above your Weekly Benefit Amount (WBA) in unemployment, you would be considered employed, and therefore not eligible to receive unemployment benefits.? Any unemployment payments made to you during the same time that you were being paid by your employer through the PPP loan would be considered overpaid and you will need to pay those benefits back to the Division.

Question 19: What do I do if I've already received unemployment benefits and my employer is back paying me through a PPP loan?

Answer:?If you have already claimed unemployment for those weeks, you will need to report your earnings immediately to the DES by calling +1 573 751 4058 and select option 4. A specialist will assist you in reporting these earnings.? Any unemployment that was paid to you, including the Federal Pandemic Unemployment Compensation (FPUC) payments, will need to be paid back by you for those weeks for which your employer was also paying you through the PPP. If you were overpaid you will receive a letter from the DES with information on how to repay the unemployment funds that were incorrectly paid to you. If your earnings through the PPP loan are less than your WBA, you may be eligible for partial unemployment benefits.? You are still required to report these earnings for each week the funds are specified to be paid. (Example- If, you were paid on 4/22/2020 for the week of 4/12/2020 through 4/18/2020, you would need to report those earnings for the week ending 4/18/2020.)

Question 20: Can I claim unemployment if the amount my employer is paying me through the PPP loan is less than my Weekly Benefit Amount?

Answer:?Yes, you can claim unemployment if the earnings you are receiving through the PPP loan are less than your WBA. You are required to report these earnings for each week the funds were specified to be paid. (Example - You were paid on 4/22/2020 for the week of 4/12/2020 through 4/18/2020 you would need to report those earnings when you request your weekly payment for the week ending 4/18/2020.)

Question 21: What can happen if I do not report the wages from the PPP loan to the Division?

Answer:?When the DES determines a claimant receiving unemployment insurance (UI) benefits failed to report earnings, the claimant will be required to repay those benefits. Some overpayments are the result of honest mistakes. However, if the claimant committed fraud in obtaining UI benefits, he/she can be assessed an additional monetary penalty, as well as possibly having his/her benefit rights canceled and being arrested, fined and imprisoned.

PPP provides loans to help small businesses retain employees during COVID-19 pandemic

The PPP is provided under the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) and extended under the Paycheck Protection Program and Health Care Enhancement Act. The PPP provides economic relief to businesses with fewer than 500 employees impacted by COVID-19 by making loans available through the Small Business Administration (SBA). Small businesses in the hospitality and food industry with more than one location could also be eligible if their individual locations employ fewer than 500 workers.

Under the Act, the full principal amount of these loans will be forgiven by the SBA if all employees of the borrower are kept on the payroll for eight weeks and the loan is used for payroll, rent, mortgage interest or utilities. The application window for loans under the program opened April 3, 2020, and remains available through June 30, 2020, or until the federal funds made available for this purpose are exhausted. (April 2020 issue of Payroll Perspectives.)

For more information on the PPP, see the SBA website.

Reopening employers should report workers who refuse to return to work

The Department asks employers, as they reopen, to report any workers collecting UI benefits who refuse to return to work. Workers who have been placed on a temporary layoff related to COVID-19 but refuse to return to work when recalled by their employer may lose UI benefits and have to repay any benefits received after the work refusal.

According to the Department's COVID-19 website:

Question 2:? What if an employee refuses to return to work?? Will they still be eligible for unemployment benefits?

Answer:?Missourians who have been placed on a temporary layoff related to COVID-19 but refuse to return to work when recalled by their employer will lose unemployment benefits, except for certain circumstances including:

• If you have tested positive for COVID-19 and are experiencing symptoms?
• If you have recovered but it caused medical complications rendering you unable to perform essential job duties?
• If a member of your household has been diagnosed with COVID-19?
• If you are providing care for a member of your household who was diagnosed with COVID-19?
• If you do not have childcare due to COVID-19 reasons, or
• If you do not have transportation to your place of work because of COVID-19.??

As we reported, UI benefits paid due to COVID-19 will not be charged against employer UI accounts. (EY Payroll Newsflash Vol. 21, #190, 4-25-2020.)

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EY Payroll News Flash