Posted on 04/22/2020 7:06:29 PM PDT by BurgessKoch
Jamie Black-Lewis felt like she won the lottery after getting two forgivable loans through the Paycheck Protection Program.
Black-Lewis saw the $177,000 and $43,800 loans, one for each of the spas she owns in Washington state, as a lifeline she could use for payroll and other business expenses.
She’d halted pay for the 35 employees — including herself — at Oasis Medspa & Salon, in Woodinville, and Amai Day Spa, in Bothell, in mid-March, when nonessential businesses in Washington closed due to the coronavirus pandemic.
When Black-Lewis convened a virtual employee meeting to explain her good fortune, she expected jubilation and relief that paychecks would resume in full even though the staff — primarily hourly employees — couldn’t work.
She got a different reaction.
“It was a firestorm of hatred about the situation,” Black-Lewis said.
The animosity is an unintended consequence of the $2.2 trillion coronavirus relief package enacted last month.
The law, the CARES Act, offered $349 billion in loans for small businesses struggling as a result of Covid-19. Banks, backstopped by the federal government, can fully forgive the loans under certain conditions.
Among them, the bulk of funds must go toward payroll, salaries must remain intact and employee head count must not decrease. Businesses have until June 30 to rehire laid-off or furloughed workers.
Black-Lewis was trying to meet these rules, especially after her bank reiterated she must continue to pay workers for loan forgiveness.
The anger came from employees who’d determined they’d make more money by collecting unemployment benefits than their normal paychecks.
(Excerpt) Read more at cnbc.com ...
This extra unemployment only lasts until July, if these horrible employees want to stay out of work what the hell are they going to do when that extra $600.00 goes away AND their job was given to someone else who wanted to work!! SO they get 2 months of extra pay then they end up with maybe half of what they were making working STUPID!! There will be enough people out there looking for jobs AND in the better restaurants the tips will be a huge draw!! Businesses will be able to find good people who want to work, probably better people because they WANT a job a lasting job!!!
It was 4 months witch started in March in July that EXTRA 600.00 goes away and they will get their regular unemployment!!!
Good. I must have misunderstood but I just looked it up and you are right 4 months until July 31st.
Unemployment also often doesn’t deduct taxes from the payments.
Yes and there are a lot of people out there that really love their job and consider the people they work with family, they won’t give that up for a few weeks of extra money!! Most will be really wanting to get back and the ones that don’t weren’t worth having in the long run!!!
They may not deduct the taxes BUT when you file you do have to pay taxes on that income you have the choice now or later!!
I’m sure you will pray and decide what is the right thing to do,,that’s what matters in the light of eternity.
It’s a difficult position for all concerned. You view it from your practical business point of view; and at the same time your employees are extremely happy to see their weekly incomes increase with the unemployment extra benefits, even if it’s only for a few months. Both views are understandable.
This is the reason why I think we will have a fast recovery. The great majority of "lost" jobs are in industries where employment is very fluid. Waiters, hairdressers, nail salons have some long term employees, but a lot of them bounce rapidly from job to job.
Two months of high pay with no work might be considered job stability by many of these people.
In 4 months they will all be right back to their old tricks. The ownership of the restaurant or business they work for might have changed, and the lender for the fixtures will be screwed by the bankruptcy of the previous owner, but the new owner will get a bargain price for the fixtures and will have a new establishment up and running.
They are the same people who are surprised when they figure out that rent is due on the first of the month and it is already the 28th. Responsible people start setting money aside for rent right after they pay it for this month.
I remember talking to a guy who was lamenting that he and his GF were hit with a "flurry of bills". Electricity, water, phone -- all unpredictable stuff like that.
I haven't seen what happens if they voluntarily quit.
I don't get it - how would they get unemployment benies if they're working??
Quit being a real jerk, as usual.
DS, he’s a troll and always has been. He’s not worth the waste of electrons to engage with.
One of thd stipulations is if you are still employed you can say you don’t want to work for fear of the virus and qualify for unemployment.
Lol, spa workers.
I, for one went from $11k a month to 2.5k with base unemployment benefits. That pays the rent/mortgage barely, if at all. Forget about any other expenses like utilities, gas and electric, oh buying foods is a thing in the past. And I’m in a field where 99% of all jobs are blocked for Americans. Seen some post that they have been out of work in their fields for months to decades. Want us to work? Remove the H1B Indian trash from this country.
This right here. My daughter is hiring right now, and has a stack of HUNDREDS of applications she can pick and choose from.
“Really? So the people where you live no longer repair their cars?”
Are you naturally ignorant or do you work at it?
“Funny” how it is small business ‘persons’ like to talk about money, wages and labor ( or how American workers suck mostly ) but never about how much profit they make.
More magic numbers. Do the other two make their losses on volume? Or did I miss another magic number.
Or maybe all three just redeploy their assets into businesses that pay higher wages.
If the good or service cannot be produced with American labor and make a profit at the same time then that good or service is not necessary. There is no real demand for it.
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