What is AB 152? Let us fill you in.
On September 29, 2022, CA Governor Gavin Newsom signed into law AB 152 which extended the Covid-19 Supplemental Paid Sick Leave (SPSL) program until 12/31/22. This program requires employers with 26 or more employees to continue to pay sick leave to employees out of work due to Covid-19 if they had not previously exhausted their SPSL entitlements before December 31, 2022.
This bill also established the CA Small Business and Nonprofit Covid-19 Relief Grant to assist qualified small businesses or nonprofits that are incurring costs for SPSL. The grant provides relief up to $50,000. The total amount an applicant can request under the program shall be no more than the actual costs incurred for SPSL provided from 1/1/22-12/31/22.
A qualifying business meets the following criteria:
- Began operating before 6/1/2021
- Is registered as a C or S corporation, cooperative, LLC, partnership, LP, or a registered 501(c)(3), 501(c)(6), or 501(c)(19) entity
- Must be an active and operating business
- Employs 26-49 employees (SPSL was not required for Employers with less than 26 employees)
- To determine if this requirement has been met, calculate the number of full-time employees that have worked for the employer, without any break in employment, for 24 months between January 1, 2021 – December 31, 2022.
- Has been providing SPSL to eligible employees as required by law
- Provides the documentation listed below under Documents Needed
Documents needed:
- Payroll records that show Covid-19 SPSL, pursuant to Sections 248.6 and 248.7, was paid from 1/1/22-12/31/22
- Signed affidavit attesting employee count
- Organizing documents including official filings with the CA SOS (Articles of Incorporation, Certificate of Organization, Fictitious Name of Registration, or Government issued business license)
- A copy of the 2020 or 2021 tax return (for profit) or Form 990 (nonprofit)
- Forms W-2s for 2021 & 2022
- Proof of Tax-Exempt status if applicable (Copy of IRS exemption determination letter).
- Acceptable government-issued Photo ID of representative submitting application
- Valid bank account linked via Plaid, or two most recent months of bank statements with transaction history
How to apply:
The application process is found here:
The application window is currently closed. There is an option to enter your contact information to be notified when the next window will be open, and we recommend that you do this if you are eligible for the grant. Fill out the Notification Form below:
What is CA Covid Sick Pay (SPSL)?
Passed in February 2022, entitles Full-Time employees up to 80 hours of paid leave related to two banks. Bank One (40 hours) – Isolation, Vaccines, Childcare. Bank Two (40 hours) – Positive Cases of Covid. CA employers can require Covid-19 tests of a diagnosis and can refuse paid sick leave to employees who won’t comply with required tests.
Businesses & Organizations that are NOT eligible:
- Businesses and nonprofits that do not operate or have physical presence in CA
- Government entities except Native American tribes
- Organizations with political or lobbying activity
- Passive businesses, investment companies, and investors who file a Schedule E
- Financial institutions
- Businesses engaged in any activity that is unlawful under federal, state, or local law
- Businesses that have customer restrictions for any reason except the capacity
- Speculative businesses
- Companies with an owner who has 10% equity interest and that owner has been convicted of a crime within 3 years or if they are currently indicted
If you have any questions, don’t hesitate to reach out to your preparer.
San Jose: (408) 252-1800
Watsonville: (831) 726-8500