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
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.
- 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.