On March 27, the U.S. Treasury Department, Internal Revenue Service and the U.S. Department of Labor announced that small and midsize employers can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees. This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act, signed by President Trump on March 18, 2020. See this DOL news release for more information.
The Coronavirus Aid, Relief and Economic Security Act (HR 748), also known as the CARES Act, is a $2 trillion stimulus intended to protect individuals and businesses negatively impacted by the COVID-19 (coronavirus) outbreak. HR Works is currently reviewing the information and working with partners to understand the key impact for employers and employees. We will provide additional information and resources as it becomes available.
Generally speaking, the stimulus package provides the following:
ADDITIONAL RESOURCES
Related Blog Posts CARES Act – Pandemic Unemployment Assistance and Economic Relief
Direct payments to individuals and households based on income level.
Economic Impact Payments: What You Need To Know (IRS Guidance)
IR-2020-72: Treasury, IRS unveil online application to help with economic impact payments (4/15/20)
Expanded Unemployment Benefits providing displaced workers an additional $600/week in benefits, in addition to UE benefits provided by the state. These expanded benefits will be available for four months. Further, workers not previously eligible for unemployment insurance, such as self-employed, independent contracts and “gig workers” will also be eligible.
- UI What You Need to Know and Do About the CARES Act
- FAQs regarding UI during the coronavirus emergency
- UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 15-20
- UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 16-20
- Small Business Relief providing companies with fewer than 500 employees (generally) to apply for a “forgivable” loan to cover payroll costs, interest on mortgages, rent and utilities. The goal is to encourage small businesses to keep workers employed. Contact your attorney or tax advisor for more information.
- Assistance for Small Businesses (US Dept of Treasury Resources)
- Preserving Jobs for American Industry (US Dept of Treasury Resources)
- Paycheck Protection Program (PPP) Loans FAQ
- U.S. Chamber of Commerce: PPP Loans: Small Business Guidance and Checklist
- PPP Loan Forgiveness Application
- 401(k) loan limits increased to $100,000 and other favorable provisions for withdrawals. Contact your financial advisor or tax professional for more information.
The expansive bill (880 pages) has many more provisions. For more information on what’s included in the stimulus package and remedies available for workers and employers, contact your attorney or tax professional. You may also contact HR Works for referrals to trusted partners who can provide guidance.
