On December 27, 2020, President Trump signed into law a new Coronavirus relief bill - the Consolidated Appropriations Act 2021 - which provides $900 billion in Coronavirus economic relief in addition to funding the federal government through September 2021.
The legislation extends and expands several provisions of the FFCRA and CARES Act which were scheduled to sunset on December 31, 2020. It also provides additional relief and clarification for key programs and tax credits available to employers to combat increasing financial strain precipitated by COVID-19.
Just as with the initial passage of the CARES Act and FFCRA this spring, implementing regulations and additional guidance from the federal government will be necessary to properly inform employers of the benefits available to them under this new legislation, as well as the protocol and procedures which employers must observe to effectively access them.
CheckWriters is closely monitoring the situation and will relay any additional guidance as soon as it becomes available. In the interim, please find below key provisions of the legislation especially relevant for employers and their workforces.
Significant changes have been made to the PPP including the ability for some businesses to apply for a “second draw” loan, and a reversal of the IRS’s position as to the non-deductibility of business expenses incurred or paid with PPP loan proceeds. The key changes under the new legislation are as follows:
Disclaimer: The material provided herein is for informational purposes only. It is not intended to be construed as legal advice, nor should it be relied on as such. It is always advisable to consult counsel relative to your specific situation.