Upcoming Holidays

Thanksgiving

In observance of the Thanksgiving Holiday, CBIZ HCM offices will be closed on Thursday, November 26, 2020, and Friday, November 27, 2020. Also, Thursday, November 26, 2020, is a Federal Reserve Bank Holiday, which means payroll draft dates may need to be adjusted.  

Important Payroll Deadlines

Christmas & New Year's Day

In observance of the upcoming holidays, CBIZ HCM offices will be closed on Thursday, December 24, 2020, and Friday, December 25, 2020, as well as Friday, January 1, 2021. Please keep in mind that December 25, 2020, and January 1, 2021, are Federal Reserve Bank Holidays, which means that payroll draft dates may need to be adjusted.

Important Payroll Deadlines

As always, your CBIZ HCM team is here to help should you have questions. We appreciate your continued partnership, and we wish you and your business the best of health. Please contact your payroll services team if you have any questions.

Clarity on PPP Loan Forgiveness Application Deadline 

Recent guidance from the Small Business Administration (SBA) clarifies that Paycheck Protection Program (PPP) loan forgiveness applications would not be due by October 31 as early forgiveness application forms had previously indicated. The timing of forgiveness applications is critical because the SBA measures the organization’s employee headcount to evaluate forgiveness on the application date.

Originally, the loan forgiveness application forms indicated there was an expiration date of October 31, 2020, but in a recent addition to the SBA’s frequently asked questions document, it clarified that borrowers may submit a loan forgiveness application any time before the maturity date of the loan.

The PPP loans generally have a two or five-year maturity date from origination based on loan structure. Loan payments are still deferred only until 10 months after the last day of the loan forgiveness covered period, however, so applicants are encouraged to apply for forgiveness much earlier than the maturity date. Unforgiven portions of the loans will accrue interest at 1% and may also be subject to tax restrictions.
 

Year-End Checklist

In the craze of year-end, it can be easy to overlook HR processes. We will have more details coming your way soon. But to help you get started, we put together this year-end checklist for you to consider.

• Verify the employer data, such as the company address that is used in processing your quarterly tax reports. 
• Review the employee data for accuracy and completion: address, state and local tax setups, and social security numbers.
• Determine amounts to be reported and tax to be withheld for employee taxable fringe benefits, and submit before the last processing of the year.
• Audit third-party sick payments made to your employees in 2020 and record in the payroll system before the end of the year.
• Verify the 2021 processing calendar is accurate and schedule any bonus payments for the remainder of 2020.
• Request any special reports needed for year-end.
• Remind employees to complete a new W-4, if necessary. 
• Confirm that all “manual” checks written during the year and any voided paychecks have been recorded in the system.
• Submit your 2021 employer’s state unemployment tax rate once received.

NACHA Operating Rules & Guidelines

The National Automated Clearing House Association (NACHA) manages the development, administration, and governance of the ACH Network in the United States. The following information is provided to update CBIZ clients about several recent and upcoming changes made by NACHA to its Operating Rules and Guidelines.  These excerpts were taken from information posted directly on the NACHA website.   The rules changes noted below are those considered to have a potential impact on CBIZ clients based on the nature of the transactions CBIZ initiates today on their behalf.  Rules changes that were outside the scope of the services CBIZ provides to clients have not been included in the summary below.

Implemented Revisions to the NACHA Operating Rules & Guidelines

Same-Day ACH Limits – implemented 03/2020 – The limit for Same Day ACH transactions increased to $100,000 to help accommodate the approximately 2% of transactions that exceeded the prior threshold of $25,000.

Upcoming Revisions to the NACHA Operating Rules & Guidelines

Same-Day ACH Cutoff Times – expected to be effective 03/19/2021 – The current cutoff for submitting Same Day ACH transactions is 2:45 pm EST.  This change will allow Same Day ACH files to be submitted through 4:45 pm EST.  This expanded timeframe will allow for the processing of urgent transactions without requiring wire transfers, which often come with higher fees.  This expansion is also intended to minimize the impacts on end-of-day operations at financial institutions and their re-opening activities the following business day.  CBIZ HCM will evaluate opportunities to extend our internal processing windows once our processing banks determine revised deadlines for submission of Same Day ACH through their systems.