July 23, 2020
Is it correct to say that the wage and salary reduction factor is not applicable if you have furloughed or reduced days for employees, so long as you have NOT reduced wage rates or salary rates?
Posted by Armanino Financial Advisory Team
If you have not reduced the hourly rate of pay or the salary of an individual, then the Salary Reduction Factor does not apply, even if you reduced hours. This factor looks only at rate of pay per unit of measure (rate per hour or salary per year) to determine if the factor should apply. Any furloughed employees, however, will bring the separate FTE Reduction Factor into play.