pay cut...

[stop]

(450+600)×52=54600. Which is more than $46,500. Median full-time wages in the US were about 48k in 2019. I was talking about people at the bottom half of the income distribution, not people in high COL areas. I never said nobody was hurting or there weren't gaps. Nor did I say we shouldn't be doing this.

 

450 is the max. people could get as little as 40.00 per week in ca. somebody that made a 400 a week salary would be entitled to 185 per week in ca unemployment benefits. Plus they are taxable. i seriously doubt there are many people making money off of being unemployed let alone want

Edited May 6, 2020 by jeepo1

[+ tassojunior]

450 is the max. people could get as little as 40.00 per week in ca. somebody that made a 400 a week would salary would be entitled to 185 per week in ca unemployment benefits. plus they are taxable. i seriously doubt there are many people making money off of being unemployed let alone want

 

For 16 weeks everyone on unemployment gets an additional $600 per week. (by your CA estimation a $400/wk worker will get $785/wk unemployment for 16 weeks.

[stop]

Just received notice that the company I work for will implement a temporary 20% pay cut. Should I consider myself lucky? I don’t want to feel ungrateful as I know there are other who’s jobs were pulled from under them..... but fuck.

 

we are not getting a cut in our monthly salary, however about 2/3 of my salary is based on company performance and is a lump sum at the end of the year. we have been advised that we will not be getting that this year.

 

i am impacted much less as i don’t have a family ....but many of my coworkers rely on the year end lump sum to pay for school costs etc. happy to still be employed but i know there are a lot of folks trying to figure out what they are going to do at the end of the year.

[RealAvalon]

but many of my coworkers rely on the year end lump sum to pay for school costs etc.

hi. sorry. what do you mean, pay for school costs? do you mean college?

[Guest]

Twist to the “free” PPP monies. IRS might not allow regular deductions on payroll/rents funded by PPP funds. This could provide costly.

https://www.forbes.com/sites/robertwood/2020/04/30/irs-denies-tax-deductions-for-wages-rent-paid-with-forgivable-ppp-loans/#3b22df591c15

 

and

 

https://www.foxbusiness.com/personal-finance/coronavirus-loan-recipients-ineligible-tax-deductions

 

And I wouldn’t think you can “reserve” any PPP funds for future taxes, because the PPP funds have to be properly distributed to payroll/rent etc. within 8 weeks of receiving funds, or no forgiveness. Catch 22?

Mike, I suspect that either 1)the forgiveness will be taxable income and the expenses count, or 2) the forgiveness will not be taxable income and the expenses PPP supported will not count. The more straightforward approach from an accounting perspective (at least to me...a non accountant) is #1...

 

SBA shut off big asset banks for a few hours last week, only letting smaller institutions send applications and requests to the SBA.

I think what they actually did was, to protect their servers, they limited each bank to 350 application inputs per hour. Effectively, this throttled down the mass producers.

Edited May 6, 2020 by BnaC

[Guest]

we are not getting a cut in our monthly salary, however about 2/3 of my salary is based on company performance and is a lump sum at the end of the year. we have been advised that we will not be getting that this year.

 

i am impacted much less as i don’t have a family ....but many of my coworkers rely on the year end lump sum to pay for school costs etc. happy to still be employed but i know there are a lot of folks trying to figure out what they are going to do at the end of the year.

Like you, a substantial portion of my total compensation is performance based. It sounds like what you have is profit sharing perhaps?

[stop]

Like you, a substantial portion of my total compensation is performance based. It sounds like what you have is profit sharing perhaps?

 

It’s called performance compensation. It’s more like a bonus. We are eligible for profit sharing as well if the company does excellent.

[stop]

hi. sorry. what do you mean, pay for school costs? do you mean college?

 

Where I am at most folks try to put their kids in private schools since the public ones are dangerous and not too great.

[MikeBiDude]

2) the forgiveness will not be taxable income and the expenses PPP supported will not count.

My CPA is going with this probability. But who knows? In retrospect I think it’s fair, and struggling businesses “in need” getting PPP loans are liable to have all kinds of expense deductions whether they want them or not!

 

On the other hand, look at this legislative “Hail Mary” from CPA group:

https://www.journalofaccountancy.com/news/2020/may/expenses-reimbursed-by-ppp-not-tax-deductible-paycheck-protection-program.html

[MikeBiDude]

I think what they actually did was, to protect their servers, they limited each bank to 350 application inputs per hour. Effectively, this throttled down the mass producers.

Maybe ??‍♂️ But I saw a lot of this, specifically stating bank’s dollar assets:

 

https://www.bankingdive.com/news/sba-small-lenders-window-paycheck-protection-program-coronavirus/577105/

[samhexum]

OPINION

 

NYC should be rushing to furlough workers who can collect from the feds

By Nicole Gelinas

 

Last week, Mayor Bill de Blasio brought up the F-word: furloughs. Without massive federal aid, he warned, Gotham will have to “furlough and layoff … the exact people who have been the heroes in this crisis,” namely, “the first responders, the health-care workers.”

 

Hizzoner is making a threat here. But a responsible mayor and council would be using furloughs as a tool: transfer people who aren’t doing immediately essential work to the expanded federal safety net, starting, yes, with the Department of Education.

 

New York City employs nearly 335,000 people — and plans only 1,000 job cuts over the next six weeks. Even as the city asks for more federal aid, it isn’t using the federal aid Congress already provided through the CARES Act: expanded unemployment benefits that allow any single breadwinner who earns the average household income to have all of his or her income replaced for nine months.

 

This system has flaws, including swamped state unemployment systems. But it’s also a lifeline to millions of retailers, restaurants, arts institutions, museums and so forth, who can at least know, as they lay off staff temporarily, that their workers are protected.

 

Our city government, too, has tens of thousands of workers, at least, who can’t do their job in a lockdown. The Department of Education, with 149,000 workers, makes up nearly half that workforce.

 

These workers do critical tasks in normal times — but can’t do them now. The DOE has nearly 1,500 school-lunch workers, for example, who earn well below the median wage, about $35,000 to $40,000 a year. Save for a skeleton crew preparing to-go meals for parents to pick up, furlough them; the city could help individual workers as they apply for unemployment insurance and pledge not to let anyone lose a paycheck. The city could also continue paying health benefits.

 

The city has 5,300 school-safety agents making less than $50,000 a year. Absurdly, de Blasio wants them to enforce social distancing, putting themselves at risk. Save for officers needed to secure meal-pickup sites, transfer them temporarily, too, to the federal safety net.

 

Nearly 2,000 educational “community assistants,” who also make well below the median income? 11,000 paraprofessionals, who work with teachers and students, and who likewise make well below median income? With summer school canceled and online classes winding down, the city could transfer most to the federal safety net with no financial harm to workers.

 

The city shows no compunction about laying off some education workers: bus drivers, because they work for private contractors, are already on furlough.

 

The city’s nearly 130,000 teachers and educational supervisors of course, make well above median wage, and so would lose income in any furlough: about $30,000 a year. Perversely, though, the teachers’ contract, which mandates that junior teachers suffer furloughs before senior ones, works in favor of near-complete income replacement, as junior teachers earn less.

 

This goes for the rest of the city’s workforce: Does the Taxi and Limousine Commission need 230 inspectors when the taxi and limousine business has fallen by 80 percent? 125 day-care inspectors, when day cares are shut? 250 food-safety inspectors, when restaurants are closed? The city simply can’t spend the $30.3 billion it expected to spend on labor for the fiscal year that started July 1. It should be taking advantage of a federal rescue that can cut this bill.

 

This also buys time — time to go through the thousands of administrative jobs the mayor has added in six years. And it buys negotiation power: Unions can agree to an across-the-board wage freeze to bring back jobs.

 

It also buys more flexibility in the fall and next year, when the rest of the nation may have moved on. New York is acutely vulnerable here, due to its density. Will residents and workers return? Will real-estate values plummet?

 

If we don’t use the extra federal safety net when it’s there, we will face mass-scale layoffs of essential workers next year — and with no extra federal unemployment insurance to offer them.

 

No elected city official will speak publicly about this idea now, because it sounds mean. But what’s really mean is being quiet now, then having overcrowded classrooms and long waits for school lunches a year from now because the money has run out for students and for future laid-off workers.

 

Nicole Gelinas is a contributing editor of City Journal.

[samhexum]

Alex Wood hasn’t lost his fastball, even two months after coronavirus suspended MLB’s season.

 

The Dodgers pitcher reacted to Mark Teixeira’s suggestion that players should take less money than expected to play baseball this year, slamming him for the take on Twitter.

 

“I refuse to judge someone I don’t really know off of one comment but damn this statement is just so stupid lol,” Wood tweeted Tuesday night.

 

Wood — who was set to make $4 million this season — fired back at Teixeira as MLB began to negotiate with the Players Association over a deal that would try to restart the season. The expected hangup is the money, as the owners want to have a 50-50 revenue share with the players instead of the prorated salaries they agreed to in a deal in March.

 

Teixeira, who made more than $200 million across his 13-year career and had the best ass in the game when he played***, did his former teammates and fellow players no favors when he encouraged them to take the deal.

 

“Players need to understand that if they turn this deal down and shut the sport down, they’re not making a cent,” the former Yankees first baseman and now ESPN analyst said

on Tuesday morning. “I would rather make pennies on the dollar and give hope to people and play baseball than not make anything and lose an entire year off their career.”

 

Teixeira said he was making an exception by not siding with the players.

 

“This is unprecedented in the history of the Major League Baseball Players Association,” Teixeira said. “And every other year, I would stand together and say, ‘The owners aren’t going to do this to us and we’re going to get paid our full fare. If I’m going to put myself out there, I’m going to get paid a full day’s wage.’

 

“The problem is you have people all over the world taking paycuts, losing their jobs, losing their lives. Front-line workers putting their lives at risk. These are unprecedented times, and this is the one time I would advocate for the players accepting a deal like this. A 50-50 split of revenues is not that crazy.

 

“If I’m a player, I don’t like it, but I’m going to do whatever I have to do to play and that means taking this deal.

 

***