July 23, 2020
If we elect to take the eight-week period, are we precluded from using the “unable to return to business activities” excuse for reduction in FTEs?
Posted by Armanino Financial Advisory Team
No, you are not precluded. Because the test is for sanitation, social distancing, or any other safety requirement related to COVID-19 to have been established or guidance issued by the Secretary of HHS, the Director of the CDCP or OSHA during the period beginning on March 1 and ending December 31, 2020, the eight-week Covered Period clearly falls within this applicable time frame. To be clear, however, restrictive requirements issued by health departments or other government officials at the state, county or city level do not meet this test; only federally issued mandates apply. However, if a lower level governing body implemented a restrictive requirement and based their decision in part on guidance from one of the federal agencies listed, that will meet the test so long as you can provide written documentation to that effect.