COVID-19 Relief Bills and Acts

COVID-19 Relief Bills and Acts

Current Relief Bills and Acts

These include plans to expand or offer Interest-free Loans, Temporary Unemployment, advanced payment of Credits, Stimulus Payments, accelerated Deductions, and suspensions or cuts to Payroll Taxes.

Phase 1 - March 6, 2020

The Coronavirus Preparedness and Response Supplemental Appropriations Act (CPRSA Act)

Allows HHS to waive certain Medicare restrictions regarding telehealth services.

Provides additional appropriations to the Department of Health and Human Services (HHS).

  • Food and Drug Administration
  • Centers for Disease Control and Prevention
  • National Institutes of Health
  • Public Health and Social Services Emergency Fund

Provides additional appropriations to the Small Business Administration.

Provides additional appropriations to the Department of State.

  • Administration of Foreign Affairs
  • U.S. Agency for International Development for the Office of Inspector General
  • Bilateral Economic Assistance
    • Global Health Programs
    • International Disaster Assistance
    • Economic Support Fund

Phase 2 - March 18, 2020

The Families First Coronavirus Response Act (FFCR Act)

Emergency Paid Sick Leave and Emergency Family and Medical Leave Expansion Acts

  • It begins April 1, 2020, and expires on December 31, 2020.
    • For private businesses with fewer than 500 employees or public agencies with 1 or more employees.
  • 2 weeks Paid Sick Leave
    • Those who are caring for others receive ⅔ pay. Limit $200/day, $2,000 total.
    • Those who must quarantine receive regular pay. Limit $511/day, $5,110 total.
  • Additional 10 weeks Paid Child Care Leave to workers caring for children whose school or daycare closed.
    • Receive ⅔ pay that is limited to $200 per day, $10,000 total.
    • Health-care providers and emergency workers may be made exempt by their employers.
    • Those quarantined without children are not eligible for the additional paid leave.
    • Businesses with fewer than 50 employees may elect to be exempt.

Refundable Payroll Credits for Qualified Paid Sick and Child Care Leave

  • Equal to 100% of qualified wages paid.
  • Applies to income taxes and self-employment taxes.
  • The credit includes allocated costs of the employees’ qualified health plans made during the leave.

Second Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020

  • Provides additional appropriations to:
    • Department of Agriculture
    • Department of Defense
    • Department of the Treasury
    • Department of Health and Human Services
    • Department of Veterans Affairs
  • Nutrition Waivers
    • Maintaining Essential Access to Lunch for Students
    • COVID-19 Child Nutrition Response Act
    • SNAP Waivers

Emergency Unemployment Insurance Stabilization and Access Act of 2020

Additional Health Provisions

Phase 3 - March 27, 2020

The CARES Act (Coronavirus Aid, Relief, and Economic Security Act)

2020 Recovery Rebates for Individuals

  • $1,200 per taxpayer ($2,400 total for MFJ)
  • $500 per qualifying child under the age of 17.
  • Phaseouts begin at $75,000 Single, $112,500 HOH, and $150,000 MFJ.
    • Phaseouts end at $99,000 Single, $148,500 HOH, and $198,000 MFJ.
  • Rebates are paid to taxpayers and dependents with valid SSNs or ATINs.
    • A value equivalent will be paid to citizens residing in U.S. possessions (Puerto Rico and Northern Mariana Islands).
    • ITINs, estates, and trusts do not qualify.
    • Taxpayer’s that are claimed as a dependent on another’s tax return do not qualify.
  • The rebate will not be used to reduce or offset any income tax owed.
    • The rebate may be applied to unpaid child support.
  • Taxpayers that do not qualify for the rebate based on 2019 or 2018 returns, but qualify with their 2020 return, will receive a credit on their 2020 return.
  • The rebate does not require repayment.
  • Earned Income is not required to receive the rebate.

$300 Above-the-line Charitable Contribution deduction on Individual Tax Returns.

  • For taxpayers that claim the standard deduction.
    • For contributions made during the tax year 2020.
  • Temporarily suspends limitation on certain cash contributions.
    • Contributions are not to exceed 25% of taxable income, including food contributions.

Temporary modified rules for Retirement Accounts.

  • Qualified plans: IRAs, 401Ks, and certain Qualified Trusts, Deferred Compensation Plans, and Annuities.
  • Waives the 10% early withdrawal penalty on withdrawals due to COVID-19.
    • Taxable as ordinary income over 3 years, unless repaid.
    • Repayments are not subject to contribution caps.
  • Waives required minimum distributions (RMDs) for qualified plans in 2020.

Business Taxes:

  • Employers may exclude annually up to $5,250 in student loan payments for employees from taxable income.
  • 50% Refundable Payroll Tax Credit. Also known as the Employee Retention Credit.
    • On wages paid during the year up to $10,000.
    • Must have at least a 50% decrease in gross receipts to qualify or have been ordered to cease operations by government order.
    • The credit for businesses with more than 100 employees is adjusted by the percentage of employees let go and salaries reduced.
    • The credit for businesses with 100 or fewer employees is not modified based on employee retention.
  • Employer’s payroll contributions to FICA and RRTA are deferred.
    • 50% is owed on December 31, 2021, and the remaining on December 31, 2022.
  • Net Operating Losses (NOL) carried back 5 years.
  • Net Interest Deduction Limitation on earnings before EBITDA is 50%.
    • Expanded from 30%.
    • Only for tax years 2019 and 2020.
  • 2020 excise tax on alcohol used to produce hand sanitizer is suspended.
  • 2020 excise tax on aviation is suspended.

$454 billion in loans to businesses, states, and cities.

  • Businesses can’t buyback stocks for the duration of the loan plus 1 year.
  • Businesses must retain 90% of their employment level as of March 24, 2020.
    • It contains rules against businesses limiting compensation and severance pay.
  • Paycheck Protection Program (PPP Loan)
    • Loan for payroll other than paid sick leave due to COVID-19.
    • Up to $100,000 per employee, max $10 million per business.

Phase 4 - TBD

Congress is working to sign into law a fourth bill. This may include an expansion to qualify dependents and students for EIP.

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