CARES ACT Signed Into Law
Today, the president signed into law the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to address the unprecedented public health and economic crisis related to COVID-19. This massive $2 trillion stimulus bill is aimed at shoring up the U.S. economy in light of the disruption caused by the coronavirus pandemic.
Key Takeaways for Employers
Delayed payment of the employer portion of social security taxes for 2020
Extension of unemployment benefits
Small Business Administration (SBA) loans made widely available (-) Maximum loan amount is lesser of 2.5 x average monthly payroll costs (which excludes any comp above $100k for any person) or $10 million (-) Use of loan proceeds limited to: payroll costs (which excludes any comp above $100k for any person), group healthcare benefit costs and insurance premiums, mortgage and rent payments, utilities, interest (but not principal) on debt that existed as of 2/15/2020 (-) Loan forgiveness: provided loan is used for above mentioned purposes, and forgiveness is reduced if employers lay off workers
The Small Business Investor Alliance has put together a top-line summary (link below) of the provisions in this act that pertain to securing the necessary funds to maintain employees and operations in these uncertain times.
Although much is still uncertain, we at On-Time Payroll believe the SBA loan in the CARES ACT will be the most viable solution for many of our clients.
If you have any questions, feel free to reach out to us at firstname.lastname@example.org or call us at 781-209-1188.