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Originally Posted by 383vett
I will have the opposite problem in my dental office. I will end up giving the staff bonuses at the end of the 8 weeks when the ppp funding is supposed to be used up. The staff is being paid now an average of their previous wages, (unlike your wife's office, we are very busy at the beginning of the year when new insurance maximums kick in and patients have been waiting for a chance to spend new insurance monies). At the end of 8 weeks I will need to give them bonuses to use up the 75% of the monies for wages. The irony here is that dentists in the Bay Area are not allowed to reopen and I am approaching the two week mark since my funding. I assume we will be closed at least until June which means that half my time to use up the funding will have been used up and I will have seen no patients. A colleague of mine received his funding and unemployment pays more than their normal wages. All but one opted to stay on unemployment and he will need to return most of his ppp money. Back to your wife's situation, is unemployment paying her more than her wages at work? There is a lot to be worked out with the ppp funding that has not yet been written. I believe in the next few weeks, there will be new information about the ppp fund usage to clarify the current situation.
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Hey Vett, thanks for sharing your insight. I'll try to address responses in bullet points and have some questions for you as well.
1.When paying your staff an average of previous wages, are you calculating this on a full year basis or seasonal basis and selected a particular quarter?
2.Since only 1 of her 2 offices applied for PPP, and she has 1.5 days a week at this office, the answer is yes, unemployment (with the extra $600 weekly) will pay more than her 1.5 days at this office. Unfortunately the 1.5 days of pay is enough to disqualify her for unemployment in NY State as well as a result. If both her offices 're-opened' with PPP funds, then that amount would be greater than collecting UI.
3.For your colleague’s office – the staff that chose to remain on UI rather than return to work, were they actually able to continue receiving UI benefits? If suitable work has been offered to them and they declined, I wonder if their UI benefits were jeopardized as a result.
4.Now in terms of returning to work, the dental office is asking that they work remotely for the next 8 weeks (attend some B.S. webinars and coursework to constitute ‘work’). The manager did send out a vague email just now asking staff to physically go into the office to clean it up and other administrative duties (not seeing patients till July however, at the earliest). However the staff will most likely push back as NY is still under closure orders, and commuting to the office means taking public transportation.
Right now, i think our only option really is to accept the offer to return to work for this one office. We will be losing out on some money but thankfully it is not an amount that will make or break us. More concerning however to us is how the office is handling the specifics of the PPP, as they seem to be deviating from what other business owners have been doing.