Don’t forget to budget for your employee benefits in your SBA loan request
While small business leaders are preparing applications for the federal Paycheck Protection Program during the COVID-19 pandemic, it is important to make sure you include the cost of maintaining your employee benefits in your loan request.
The Paycheck Protection Program is clear that health benefits are part of payroll costs and therefore qualify for the forgiveness component of the loan. We believe the important coverages that supplement health insurance, such as disability, dental, critical illness and others also qualify as group health care benefits, since states typically regulate them as health insurance. We have asked the Small Business Administration to clarify this point.
While your employees deal with stress and health concerns, it is reassuring and supportive to make sure they have continued coverage that addresses their health and wellness holistically, going beyond core health insurance. Along with financial coverage, benefits like disability insurance include access to employee assistance programs, vocational rehab, and other supportive services. We emphasize the value of voluntary and supplemental health benefits every day, and these support systems may prove more important than ever before.
Make sure you can keep these benefits going for your employees. Even with COVID-19 dominating health concerns right now, other health issues will arise. We need to ensure that our workers have all the coverage they need to support themselves and their families while recovering from any major health event.
As employers, we have an impact on the welfare and wellness of our employees while we all navigate this uncertain time. Maintaining benefits for employees is critical during a time when they crave safety, support and hope. Help ensure that ongoing support by including insurance premiums in your payroll calculation.