July 23, 2020
What documentation is needed to substantiate a legitimate decrease in the number of FTEs, such as people not wanting to come back due to fear of exposure to COVID-19 or lack of sufficient business activity to require the employee?
Posted by Armanino Financial Advisory Team
For employees who were laid off or furloughed and refused, for whatever reason, to return to work, you need to have both the offer to be reinstated (preferably, a formal offer letter) and their refusal in writing. In the case of insufficient business activity, you should be able to show a significant decrease in revenue or other relevant operating statistics during the Covered Period as compared to the same period in the prior year.