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If I Cut My Employees' Hours, Should We File for Unemployment?

It is our understanding this morning that you if you have to layoff or furlough your employees, you can file for unemployment benefits for them, and then hire them back later using funds from the Payroll Protection Program stimulus funding.
 
The key to unemployment benefits now is that the employer must a claim as soon as they reduce their employees’ hours.  In the past, the laid-off employees have always filed for benefits for themselves, so this may be confusing. There is a significant penalty for not filing for benefits for your employees immediately.

To file for unemployment benefits, go to the Georgia Dept. of Labor web site.  The link to use to file for benefits and the related instructions are there.  The filing process will take a little time.

The procedures for the Payroll Protection Program forgivable loans are still being written.  The banks that will make the loans won’t have information until the end of the week.  This money will not be available for a little while.

The purpose of the employee part of the stimulus funding is to keep your employees available, so that they are able to come back to work when your business is back to normal.  Unemployment is the bridge until the Federal funds arrive.

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