The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020. This bill intends to provide emergency assistance and health care response for individuals, families, and businesses affected by the 2020 coronavirus pandemic.
In the coming days and weeks, guidance will be provided on how to execute or implement the new requirements, and how to apply for the new benefits where applicable. In the meantime, individuals, employers and advisors must rely on a good faith interpretation of the act’s text.
For information on updates and changes, please check-in periodically with the CheckWriters COVID-19 Resource Page.
The below reflects information pertinent to employers and their employees, and is not inclusive of all individual, healthcare industry, and miscellaneous provisions that CARES covers.
The FFCRA Emergency FMLA has been further defined in CARES to include certain employees who were laid off and are/will be rehired.
Individual taxpayers can expect a recovery check of $1,200 per individual, or $2,400 for married couples filing jointly, plus $500 for each qualifying dependent child.
The penalty is suspended for withdrawing up to $100,000 from retirement accounts for certain eligible individuals.
Unemployment benefits are expanded for individuals, including those who are self-employed.
There are now additional pre-tax benefits for reimbursement accounts:
The CARES Act provides funding for childcare providers to stay open and maintain payroll/staffing if their services are provided for healthcare, emergency, and sanitation workers required to work amidst the COVID-19 crisis.
The CARES Act provides an Employee Retention Credit based on the economic hardship COVID-19 placed on a business.
The CARES Act will allow for most employers to defer paying their share of the social security portion of payroll taxes from March 27, 2020 through December 31, 2020. This provision allows for 50 percent of those taxes to be instead deposited by December 31, 2021, and the remainder deposited by December 31, 2022.
CARES provides small business relief specifically for employers with 500 or fewer employees, including nonprofits, in a few different forms: