May 28, 2020
After several months of enduring unexpected forced business closures and stay at home orders, state and local governments are executing their plans to gradually re-open businesses and jumpstart the economy. This is a welcome relief for many who were unable to operate and those who have had to significantly adjust operations during the emergency. Regardless of their situation, this is welcome news for Atlanta businesses that have been patiently waiting to serve customers and clients. As businesses open their doors again there will be new challenges, restrictions, and rules that must be addressed. While it’s not possible to alleviate all COVID-19 related risks in one day, but if issues are addressed in a comprehensive plan, it makes managing each risk much easier. To help clients, prospects, and others, Wilson Lewis has provided a summary of the top planning items to consider as businesses re-open.
Follow Official Guidance – When re-opening it’s important to become familiar with the guidance issued by the Centers for Disease Control on a wide range of COVID-19 transmission prevention steps. At the same time, it’s also important to review the opening guidelines issued by Governor Kemp as it provides information on the rules to follow by business type. For example, restaurants are required to limit parties at a single table to 6 people, use contactless pay options, and prohibit self-service drink, condiments and use disposable menus when possible. Carefully review the applicable guidance and ensure compliance with these standards as best as possible.
Review Safety Protocols – Since COVID-19 is easily transmitted, it is important to review safety practices to include additional cleanings, tracking employee health, and requiring protective equipment (i.e. facemasks or gloves) as these can help reduce risk of transmission. The last thing any business owner wants is for their employees to become infected accidentally. Also, consider reviewing safety protocols recommended in the Occupational Health and Safety Act’s guidance. In addition, do not forget about customers and visitors. Check with the Georgia Department of Public Health to determine best practices.
Revisit Medical Insurance – Under IRS guidelines, employees are generally not permitted to make adjustments to their employer-sponsored health care plans mid-year except following certain qualifying events (e.g. change in marital status, birth of a child, change in spouse’s employment status, etc.). IRS Notice 2020-29 states that COVID-19 can be a qualifying event if employers make the appropriate selection. This allows employees to sign up for new coverage, change coverage, or adjust flexible spending account contributions.
Creating the opportunity for workers to obtain or adjust healthcare coverage is a simple way to generate goodwill, but it may expose the company to increased costs if employees become ill. to hefty medical costs if your employees fall ill. At the same time, if participation rates are increased, then healthcare costs per worker will likely decrease. This will enhance the company’s buying power and create a better situation when negotiating with the provider at the end of the year. Weigh the pros and cons so you can make an informed decision that fits within the business’s ethical and financial framework.
Maintain Robust Communication – Customers, vendors, and employees all benefit from knowing the company is managing the COVID-19 threat. Share safety measures on social media, company website and even through email. In addition, companies may want to consider hosting a webinar for employees that outlines policies and procedures. Ongoing communication about safety will strengthen the brand’s image and keep customers loyal.
Manage the Customer Experience – Let us face it things are changing and will continue to change due to COVID-19. It is important to acknowledge these changes and keep customers and clients updated. Remind them the team is still here, working hard, working for them. How the brand responds to the pandemic will be remembered for years to come, so be careful when crafting messages about COVID-19. A few things to consider in the process is to:
Above all, remain optimistic and focus on recovery. There is no need to play into fear and uncertainty. Let customers know the company will endure these setbacks despite the uncertainty.
Redesign the Working Model – COVID-19 has embedded itself into the culture, and it is not going anywhere anytime soon. How does the business need to change? To see what areas may be affected, or need to change, consider the following:
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COVID-19 has been the surprise of 2020 leaving many facing challenging times. However, as Atlanta businesses re-open it is essential to carefully consider both the risks and opportunities for your business. The information outlined above is a summary of the important issues’ companies need to consider in the process. If you have questions or need assistance with a COVID-19 tax or planning issue, Wilson Lewis can help. For additional information call us at 770-476-1004 or click here to contact us. We look forward to speaking with you soon.