Coronavirus Aid, Relief, & Economic Security (CARES) Act

Coronavirus Aid, Relief, & Economic Security (CARES) Act

Last week Congress passed a $2.2 trillion safety net for American people and American businesses. Here are some of the details of this relief bill:

Direct Payments of $1,200 for individuals earning less than $75,000 and $2,400 for married couples earning less than $150,000, and a family would get $500 per child. That means a family of 4 earning less than $150,000 can expect $3,400. The checks start to phase down completely for people making $99,000 and couples making more than $198,000. These numbers are based on Adjustable Gross Income from either the 2018 or the 2019 income tax return. People who receive social security benefits but don’t file tax returns are eligible too.

Unemployment Payments
States will continue to pay unemployment to people who qualify. This amount varies state by state. So does the amount of time people are allowed to claim it. This bill adds $600 per week from the federal government on top of whatever base amount a worker receives from the state. The boosted payment will last four months. This legislation adds 13 weeks of additional unemployment insurance. People nearing the maximum number of weeks allowed by their state would get an extension.

Self-Employed, Freelance & Contract Employees
The bill creates a new, temporary Pandemic Unemployment Assistance program for self-employed, free lancers, and contractors who are not eligible for state unemployment benefits. Deadline to File Tax Returns The filing deadline has been extended to July 15.

Insurance Coverage
The bill requires all private insurance plans to cover COVID-19 treatments and vaccines, and to make all Coronavirus tests free. Small Business Emergency Grants This bill provides grants up to $10,000 to provide emergency funds for small businesses to cover immediate operating costs.

Small Business Forgivable Loans
There is a $350 billion allocated for the SBA (Small Business Administration) to provide loans of up to $10 million per business. Any portion of that loan used to maintain payroll, keep workers on the books, or pay for rent, mortgage and existing debt could be forgiven, provided workers stay employed through the end of June. Contact any financial institution approved to write SBA loans for additional information and what documents are required to initiate the grant and/or loan.

Tax Credits
This bill establishes a full refundable tax credit for businesses of all sizes that are closed or distressed to help them keep workers on the payroll. The goal is to get those employees hired back or put on paid furlough to make sure they have jobs to return to. The credit covers up to 50 percent of payroll on the first $10,000 of compensation, including health benefits for each employee.

Source: https://www.congress.gov/bill/116th-congress/senate-bill/3548/text

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