This course was filmed directly after the passage of the Cares Act in late March 2020. The information about the PPP and Cares Act is accurate as originally passed.

In April 2020, the government funded an additional $300M to the program. In June 2020 the SBA, who administers the Act, made changes to the original pay back period. These elements are not reflected in this presentation because of the timing and evolution of the program. However, The course is meant as an introduction to the original Act and a highlight regarding Payroll Fraud.

The quick onset of the COVID-19 Pandemic has resulted in organization’s trying to react quickly to government and legislative mandates for all aspects of operations.  This reaction has caused many complications and logistical issues in many areas including adequate preparation and management of payroll. Personnel and payroll are critical to all businesses. The payroll process includes a multitude of factors including pay rates, employee classification, sick leave, paid time off, withholdings, taxing, benefit plans and other elements that impact workers. 

On March 18, 2020, President Trump signed the Families First Coronavirus Response Act into law, authorizing certain relief to employees and small and midsize businesses pertaining to the COVID-19 pandemic. On March 26, the Senate unanimously passed a 2 trillion-dollar relief bill.  These bills include the CARES Act and the Payroll Protection Program.  The March 18 Act is intended to help the U.S. supply businesses and tax-exempt organizations with less than 500 employees with sufficient funds to provide employees with paid leave mandated taken in connection with the pandemic related to employees’ health condition or to provide care for family members. The funds are taken through tax credits.

In addition to legislative issues, companies must pro-actively manage all aspects of their payroll process from managing exempt and non-exempt personnel, to layoffs and furloughs, to paid benefits and taxing issues.  The payroll process is one considered “inherently” at high risk for fraud.  In this time of crisis, companies will need to be pro-active with their internal controls surrounding this process. This course highlights some of the payroll related issues employers must consider during this time.  We also briefly highlight the increased risk of fraud in the payroll process due to the pandemic.