Parents and students aren’t the only ones wondering whether schools will open as usual in the fall. Learn how the higher education industry is preparing for this uncertainty and how those decisions could affect our businesses and workforce. We’re unpacking the latest.
During our conversation with President Gee, we touched on a variety of topics and questions, including:
- Will there be in person classes, online, or a mixture of both?
- Will there be a substantial number of students that decide to take a gap year?
- What are the living situations going to be for students signed up for dorms?
- Are masks going to be the norm?
- How will those graduating in the near future or looking for internships be finding positions for the future?
- Companies had to pull back their hiring during the past 4 months due to a lack of business activities work. How should businesses be hiring for the future, and why is it prudent to add representation from this younger generation into their organizations?
- Are colleges equipped to handle a surge or the illness?
- What will happen to clubs, Greek life, and other forms of student activities?
- What will athletic competitions will look like?
- Advice for parents as they send their kids off to college?
- Leslie Boyd, CLA Principal
- Don Loberg, Managing Principal of Industry
- E. Gordon Gee, President, West Virginia University
In case you missed it:
Questions and Answers:
Is there any talk of being able to apply for another PPP in 2021 if we got one in 2020 and there’s more funding available?
Yes, Secretary Mnuchin did suggest that current borrowers will be able to either re-apply for a new loan or perhaps get an additional amount advanced.
24 week forgiveness does that include rent and utilities for that duration? FTE do you include owners if they are on payroll?
The 24 week period does include rent and utilities for the whole time. Just remember, non-payroll costs have to be 40% or less of the forgiveness amount requested. Regarding the owner FTE question, the application itself seems to exclude owners from the FTE calculation even if they are on payroll (i.e., in the C or S-Corp setting) since owners are reported on line 9 of Schedule A and the FTE counts reflected on Line 12 of Schedule A only include FTE’s from the Table 1 and Table 2 non-owner employee tables. If you have owner-employees, we believe it is appropriate to remove them from the pre-COVID period FTE count reflected on Line 11 of Schedule A as well.
On the forgiveness application, is a part time employee (approximately 9 hours per week) included in the Reduction Calculation if they worked for a nonprofit in a retail resale store that was mandatory closed and they therefore did not work? ALL other employees were kept on payroll at the same rate/hours.
Unfortunately the technically correct answer is that the part-time employee should be included in the FTE reduction calculation. The good thing is that the impact should be minimal on the FTE reduction quotient. If you use the “actual hours” method of determining FTE’s, this employee would only count as .225 FTE in the pre-COVID reference period, so reduction would be insignificant. With the ability to use a longer covered period, you should be able to get to 100% forgiveness even with the FTE reduction by extending the covered period so that eligible expenses exceed your PPP loan balance even after considering the FTE reduction. For instance, if your PPP loan is $100,000 and you spent $100,000 in 8 weeks but you won’t get 100% forgiveness because of the FTE reduction, use a 9 week period so now your total expenses are $112,500 and then applying the minor FTE reduction will still result in an amount above $100k.