I have highlighted just a few provisions of the CARES Act that I believe will be most relevant to my clients. I have further information on the below brief descriptions and would be happy to provide them. However, to keep this post “brief” I am only providing only bullet point information.
- Business Assistance and Updates
The CARES Act offers various forms of assistance for individuals and businesses. Businesses may apply for Economic Industry Disaster Loans (EIDL) Apply for EIDL or Paycheck Protection Loans Paycheck Protection. Paycheck Protection Loans are processed through your Bank and as of the writing of this post the application process has not yet been completed. Repayment of some of these loans or part of some of these loans may be waived or forgiven if you meet certain requirements.
The Act temporarily eases Excess Business Loss Limitation, increases business interest deduction limitation, eases Net operating loss limitations for Federal Income Taxes for Businesses.
Businesses with less than 500 employees are required to provide paid leave for employees. There are offsets for these expenses.
Employers may be eligible for a 50% refundable payroll tax credit on wages paid up to $10,000 during the crisis.
Unemployment Insurance is expanded.
Employer side Social Security payroll tax payments may be delayed.
- Information for Individuals
The CARES Act includes relief for individuals as well. $1200 per individual, $2400 per married couple and an additional $500 per child for those with incomes up to $75,000 per individual and $150,000 per married couple. Federal taxes are not due April 15, 2020, the deadline is now July 15, 2020. The Charitable Contribution deduction has been expanded. Retirement plan minimum distributions are temporarily waived as is the funding requirement for single-employer pension plans. there is a waiver of at least party of the early withdraw penalty on individual retirement plans as well.
The CARES Act puts a 120 moratorium on all evictions actions for properties which have a federally held mortgage, Fannie Mae, Freddie Mac etc. There is an additional 30-day forbearance after the 120 days before an eviction action can be given to the tenant. These owners may request a forbearance on their federally backed mortgage and there is a moratorium on foreclosure of federally backed loans/mortgages. If you have a federally backed or provided mortgage, please contact our office for additional information.
Federal Student Loan payments are suspended through September 30, 2020.
Unemployment Insurance is expanded.
- This information should not be considered legal advice as each situation is unique and varies. Use of any links and review of this document does not create an attorney client relationship. Please contact our office for more detailed information on any particular topic in this article.
Leave a Reply