July 23, 2020
If I rehire people by December 31 does that get me Safe Harbor from the FTE reduction calculation?
Posted by Armanino Financial Advisory Team
The Safe Harbor rule for FTE reduction applies only to the average FTEs that a borrower had between February 15 and April 26 and compares that number to the FTEs that the business had during the February 15 pay period. If the average during the February 15 to April 26 period is less than the February 15 FTE amount, then the Safe Harbor applies if the February 15 FTE count was restored no later than December 31.