BULLETIN
March 28, 2020 (UPDATE)
President Donald Trump has signed the third and largest COVID-19 piece of legislation. The following bullet points summarize the key provisions of the Act.
Coronavirus Aid, Relief and Economic Security Act (CARES Act)
- Expanded Unemployment Benefits
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- The federal government will provide an additional $600 per week in unemployment benefits – this is on top of what the state will provide to the person in regular weekly unemployment benefits.
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- Example: A laid off worker in Illinois who was earning $577 per week in wages, would normally have been eligible for $272 in weekly unemployment benefits. With the $600 in additional unemployment benefits under the CARES Act, the unemployment benefits could increase to $872 per week.
- Payroll Protection Loans
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- Companies with less than 500 employees may be eligible to receive a forgivable loan.
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- Loan maximum is lesser of (1) average monthly payroll costs during the prior year x 2.5; or (2) $10 million.
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- Payments under this program exclude sick leave payments made as part of the FFCRA.
- Direct Payments to Individuals
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- $1,200 for most adults earning less than $75,000 per year (or $2,400 combined for married couples earning less than $150,000).
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- $500 per child.
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- Potential smaller checks for individuals earning between $75,000 and $99,000; and couples earning between $150,000 and $198,000.
- Employee Retention Tax Credit
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- Refundable payroll tax credit for 50% of the wages on the first $10,000 of compensation.
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- This tax credit is not available to employers that receive the “paycheck protection” loans.
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- Available to employers whose:
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- Operations were fully or partially suspended due to a COVID-19 related “shut-down order,” or
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- Gross receipts declined by more than 50% when compared to the same quarter in the previous year.
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