Stimulus Bill Highlights

The CARES Act contains a lot of provisions designed to stabilize the economy and help individuals and business with immediate cash needs.

This is an overview.  We will be communicating details as we receive them.

Recovery Rebates

  • Tax credit advances paid by the Treasury.
  • Individuals will receive $1200 ($2400 for joint filers) plus $500 per child.
  • The credit is phased out for incomes above $150k for joint filers and $75k for single filers.
  • The Treasury department will try to send payments within three weeks.
  • This is a 2020 tax credit that will be reconciled on your 2020 income tax returns.

Payroll Tax Credit Refunds

  • The credit is for required paid sick leave and family leave.

Employee Retention Credit

  • A credit for employers that close due to the coronavirus.
  • A credit against payroll taxes equal to 50% of wages, up to $10k per employee
  • For employers whose businesses are suspended due to orders from a governmental authority, and employers whose gross receipts are 50% less than the same quarter in the prior year.
  • Eligible wages are those paid to employees who are not providing services due to the suspension of the business.

Payroll Tax Delay

  • 50% of employer payroll taxes for 2020 are delayed until 2021 and 50% are delayed until 2022.
  • This does NOT include taxes withheld from employee wages.

Retirement Plans

  • Distributions up to $100k are allowed without the 10% penalty
  • Must be diagnosed with COVID-19 or have a spouse or dependent who has been diagnosed or suffering financial difficulties from being laid off or unable to work due to lack of childcare.
  • Distributions may be repaid within 3 years.

SBA Disaster Loans

  • Directly from SBA
  • Apply at disasterloan.sba.gov/ela
  • Used to pay payroll, fixed debts, and other bills that can’t be paid due to loss of revenue from a disaster.

SBA Forgivable Loans

  • Administered by banks
  • Contact your bank to see if they are participating
  • For money spent on payroll, mortgages, rents, or utilities
  • Up to 4 times the businesses’ average cost of above expenses.
  • Up to $100k

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