Very interesting ...

IRS Notice 2020-18 Relief for Taxpayers extended the 2019 federal income tax filing, payment, and IRA contribution deadline from April 15 to July 15, 2020.

We own a distribution business. Involves food/grocery. The hoarders continue to inflate our bank account. It's been a record setting month of March for us. Our supply chain has been keeping pace. Soon people will realize they have purchased enough food they won't need to step in a store for two years. I wonder how much of this food is going to get tossed in the months ahead?

Anyhow our business will feel the slow down in the coming months. No free lunch.

Started researching unemployment today. 10 days ago, I was having the best year financially ever in my life. Now I'm looking into unemployment insurance.

I have one job today. My boss says he can get 'some' work for me, but I'm taking off next week just to see if the exponential growth continues, or levels off and to see if any treatments prove effective. Since I'm taking off next week and there could possibly be some work, I can't file now I guess.

After next week, I guess I would qualify, but my job is so variable. He could call me at 10am and say I have one job for you, do you want to do it? If I say no, I don't want to leave the house for 1.5 hours of pay which really will take way more time than that due to paperwork and driving. I'd be disqualified for the week.

I am thinking about asking him to lay me off or furlough me (not 100% sure I know what that means). That way I can claim the full benefits which the the enhances coverage would mean I'd get about half pay. With that I could last through the entire summer without completely using all savings (if need be).

We have separate health insurance, so I guess the biggest factor would be how much more it would cost to go on her plan unsubsidized vs my subsidized plan.

I'm doing one small job today that will keep me from having a negative weekly paycheck this week. That's my other option I'm considering is tell him to schedule me for just a few hours per week, just enough to pay for health premiums. That way I'm lessening my exposure chances, but still have health insurance.

I can't believe I'm having to make these types of decisions. 10 days ago we were doing awesome, today I'm looking at unemployment and what I can sell to make some extra cash to hold us over for a period.

Luckily I have a good amount in savings and could go for three plus months just off of that, plus we have another months savings in joint account. If we cut every possible expense, we could probably pay all the bills just from her salary and savings for the rest of the year.

I hate this stupid virus, and thank God I'm prepared to weather the storm, but it's going to hurt my pride and my bank account. I pray for those that haven't planned for a rainy day.

Our company just announced voluntary 50% and 100% furlough options, and an "across the board" 20% pay cut.

Liquidity issues are going to expose to the country who was operating hand-to-mouth, and who was prepared for rainy days. At least in the short term it will.

Long term, all bets are off probably.

Wife is facing layoffs Friday...for her and the 30 people under her.

She is in retail so it was expected.

Hopefully it will be just a furlough and not permanent.

She has been with the company over 30 years.

We are closing our store tomorrow to customers but are keeping everyone on payroll as long as we can.

No real impact here other than now that I am teleworking my diesel bill is down to about $20.00 a week for my little VW Golf.

This leaves me money for supporting local businesses like getting a sandwich or good cup of coffee. It also leaves more money in the budget for a box of ammunition here and there.

Our gun shops are fully stocked in our area with the shelves full of AR variants, SCARs and many handguns as well as some darned nice rifles and shotguns.

quote:

Originally posted by Jeff Yarchin:
We are closing our store tomorrow to customers but are keeping everyone on payroll as long as we can.

Jeff, please allow me to present a counter argument on why you should lay those people off immediately.

If we take the long term view, you and your employees want your business to be healthy, and you all want it survive through this episode and be there when the restrictions are lifted to be able to put them back to work as soon as possible.

If you continue to pay them, you risk depleting cash that you can use to carry you and the business through this time. And the recovery of our economy will depend on small businesses like yours surviving and putting people back to work.

I assume your employees can file for unemployment? That will provide them all with some cash to make it through until you and your business can get moving again. As an aside and small benefit, the more people that have to file unemployment, the greater the pressure will become on all governments (local, state and federal) to re-open things in a timely manner. As an example, the fact that unemployment numbers released today for last week, 3.3 million jobless claims which smashed the projections of 1.5 million jobless claims, has to be creating pressure for elected officials.

quote:

Originally posted by holdem:

quote:

Originally posted by Jeff Yarchin:
We are closing our store tomorrow to customers but are keeping everyone on payroll as long as we can.

Jeff, please allow me to present a counter argument on why you should lay those people off immediately.

If we take the long term view, you and your employees want your business to be healthy, and you all want it survive through this episode and be there when the restrictions are lifted to be able to put them back to work as soon as possible.

If you continue to pay them, you risk depleting cash that you can use to carry you and the business through this time. And the recovery of our economy will depend on small businesses like yours surviving and putting people back to work.

I assume your employees can file for unemployment? That will provide them all with some cash to make it through until you and your business can get moving again. As an aside and small benefit, the more people that have to file unemployment, the greater the pressure will become on all governments (local, state and federal) to re-open things in a timely manner. As an example, the fact that unemployment numbers released today for last week, 3.3 million jobless claims which smashed the projections of 1.5 million jobless claims, has to be creating pressure for elected officials.

So, basically, lay them off to collect unemployment through this 'Health Crisis' we are experiencing. Once this fiasco is over, re-hire them and get back to work.

Would the employees be able to keep the tenure or basically start over with the new rehire date?

IT Recruiter here. My desk is getting hammered. Contracts getting canceled. Projects getting pushed back. This is no good for me.

quote:

Originally posted by holdem:

quote:

Originally posted by Jeff Yarchin:
We are closing our store tomorrow to customers but are keeping everyone on payroll as long as we can.

Jeff, please allow me to present a counter argument on why you should lay those people off immediately.

Agree 1000%.

We are fortunate with our business that things are 'critical support' for the government, so the work / pay / etc is continuing for now.

But if we got a stop work / pay order on a contract, we'd be laying off immediately. Like that day. Because its business, not personal.

Just like you outlined, we'd explain it to them that in order to keep the company viable / not bankrupt / i.e. able to hire them back when work starts again, they are laid off and should file for unemployment. That is why we pay unemployment tax.

Because it does them and us ZERO good if we have to close up shop, permanently. But it doesn't sound as good on social media when you lay people off, of course. Nearly every restaurant around here did mass layoff once the lobby / dine in areas were closed, keeping on only kitchen staff / people needed for takeout

quote:

Originally posted by Jeff Yarchin:
We are closing our store tomorrow to customers but are keeping everyone on payroll as long as we can.

I would highly consider keeping your store open, but order at the front door and the stuff brought out to the customer to limit exposure. Put it on a rolling cart, roll the cart just outside the door and let the customer take it off of the cart. There are many people that rely on pet stores because their dog/cat etc. doesn't eat the garbage food sold at the grocery store.

quote:

Originally posted by RHINOWSO:

quote:

Originally posted by holdem:

quote:

Originally posted by Jeff Yarchin:
We are closing our store tomorrow to customers but are keeping everyone on payroll as long as we can.

Jeff, please allow me to present a counter argument on why you should lay those people off immediately.

Agree 1000%.

We are fortunate with our business that things are 'critical support' for the government, so the work / pay / etc is continuing for now.

But if we got a stop work / pay order on a contract, we'd be laying off immediately. Like that day. Because its business, not personal.

Just like you outlined, we'd explain it to them that in order to keep the company viable / not bankrupt / i.e. able to hire them back when work starts again, they are laid off and should file for unemployment. That is why we pay unemployment tax.

Because it does them and us ZERO good if we have to close up shop, permanently. But it doesn't sound as good on social media when you lay people off, of course. Nearly every restaurant around here did mass layoff once the lobby / dine in areas were closed, keeping on only kitchen staff / people needed for takeout

It sounds wrong, but it's the right move.

Also with the enhanced unemployment, if they make less than $20 an hour, they may be better off (not sure if they changed that provision or not), or at least be given a very high percentage of their pay.

The best thing you can do is make the business viable when we come through this.

I feel for you so badly. I'm worried about my well being, you have the weight of your family and probably 10+ other families to consider.

Businesses aren't built to stand completely unforeseen emergencies, real or imagined.

Anyone who expect a business (especially a small business) to be able to remain paying employees to not work for any more than a very limited portion of time has never been in business before. It's just an unrealistic expectation.

Thats why businesses have to pay unemployment taxes (Federal and State). It would be like paying for your own health insurance, then deciding not to use it when you were seriously hurt and pay for the services out of pocket.

quote:

Originally posted by holdem:

quote:

Originally posted by Jeff Yarchin:
We are closing our store tomorrow to customers but are keeping everyone on payroll as long as we can.

Jeff, please allow me to present a counter argument on why you should lay those people off immediately.

If we take the long term view, you and your employees want your business to be healthy, and you all want it survive through this episode and be there when the restrictions are lifted to be able to put them back to work as soon as possible.

If you continue to pay them, you risk depleting cash that you can use to carry you and the business through this time. And the recovery of our economy will depend on small businesses like yours surviving and putting people back to work.

I assume your employees can file for unemployment? That will provide them all with some cash to make it through until you and your business can get moving again. As an aside and small benefit, the more people that have to file unemployment, the greater the pressure will become on all governments (local, state and federal) to re-open things in a timely manner. As an example, the fact that unemployment numbers released today for last week, 3.3 million jobless claims which smashed the projections of 1.5 million jobless claims, has to be creating pressure for elected officials.

Thank you for that. Makes sense.

He in Washington State pet supply stores also get to stay open.:

quote:

'Essential businesses' remain open during stay-home order, but what's 'essential'?

Others among the list of "essential businesses: Veterenarians and pet supply stores also get to stay open.

“We’ve had a conversation with few of our customers not understanding why we’re still open,” said Bill Wolfe, the owner of Wag N’ Wash. "But when we explain that we carry essential foods as well as supplements that dogs a cat need that groceries don’t carry, they seem to get it."

https://komonews.com/news/loca...ates-stay-home-order

We are waiting to hear about that for NC.

We are luckier than most. The company I work for is a SaaS and data science provider and provide those services to colleges and universities. We already work 2 or 3 days from home under normal circumstances. The first of March the company sent out a general email requesting that all people work 100% from home till further notice. Our quarterly report shows revenues and profits up.

My wife works for a Dr's office. Last Friday she was told to move her office to our house. Desktops, scanners, printers. Her office is conducting all business digitally until further notice.

My stock portfolio is a different matter. My portfolio value lost more than my annual salary over the last few weeks. I am trying to ride the crash out. However, I picked up a few stocks that were way undervalued while they were "on sale".

We are retired and receiving SS. I do some part time work driving. We are shutdown but received a call that we would continue to receive our pay for the next 6 weeks based on average number of hours in the past. We are a non profit. 401k took a huge hit before I got out. Think I should have got back in Monday. Brother has a business back in Alabama and so far is keeping everyone working. You guys that have business I think your employees and your business would be better of if you lay-off and allow them to receive unemployment plus gov help. Preserve your business for yourself and your employees .There will be a future when this this is over. Prayers for all. Good luck.

quote:

Originally posted by 9mmnut:
Think I should have got back in Monday.

No sense trying to time the market. It'll just as likely fluctuate even more in the coming weeks / months. 5% swings are now "common" and hedge funds with enough clout can play their game. Until they are brought into line.

Heck, Ford dropped to $4 and was $5 the next day. A bunch of people made 25% return in one day. Not me, but I've been thinking about Ford stock for a while.

It is a great time to look at overall strategy.

Below is Fidelity's view of markets around the world. It is 6am here. Australia is 9pm today and their market is closed for the weekend, down 5% today. All of Europe in the red. US futures down slightly. I'm guessing there will be a little profit-taking, maybe a lot.

But as far as 'market timing', that is not my skill. It would all be a guess. Dollar-cost averaging is my strategy. I'm glad you got out of the market when you did. I'm so conservatively invested, it did not hit me too noticeably. But as my few extra shekels and coppers make their way into my IRA, I'll ignore emotion and stick with a conservative plan.

https://eresearch.fidelity.com...ectors/landing.jhtml