Senate Passes $2 Trillion "CARES" Act
COVID-19 Daily Communications
(Accurate information as of 03/25/20)
Highlights:
Senate passes $2 trillion Coronavirus Aid, Relief and Economic Security (“CARES”) Act. In the early morning hours. Wednesday the Senate passes the most sweeping stimulus package in American history. Provisions under the Senate Bill, that now moves to the House and will then need Presidential approval includes the follow:
$367 billion of direct funding support to small companies to deal with payroll problems and provide up to six months of loan forbearance for all small businesses.
Unemployment insurance would also be extended to those who typically do not qualify, such as gig economy workers, furloughed employees and freelancers.
$600-per-week across-the-board increase in unemployment benefits for all workers claiming them. Given that as of January the average UI check is about $385 per week, this is a massive increase. The package promises these higher benefits for unemployed recipients for up to four months.
Direct payments of $1,200 to most American adults and $500 to most children. Under the plan, people making up to $75,000 a year are expected to receive checks for $1,200. Couples making up to $150,000 would receive $2,400, with an additional $500 per child. The payments would decrease for those making more than $75,000, with an income cap of $99,000 per individual or $198,000 for couples.
The bill creates a new program, Pandemic Unemployment Assistance, for self-employed and contract workers who are typically ineligible for UI. It provides some incentives for work-sharing, a program whereby the government covers a portion of lost wages for workers whose hours have been reduced. The intention here is to incentivize companies to retain workers by just employing them for less time.
Client Inquiry responses:
Tax Filing Dates
OHIO
The Executive Branch in Ohio has asked the legislature to include moving the tax deadline back in the legislation they are currently working on.
KENTUCKY
In KY the filing date was moved to July 15 by executive order as they are not in session. One caveat for KY taxes is that the governor does not have the authority to forgive interest on late tax payments so for KY taxes paid after April 15th the client will still be charged interest.
Corporate Small Business COVID-19 relief efforts:
Businesses of all sizes and sectors are stepping up to address this crisis. The US Chamber of Commerce has published a list of Corporations that are offering relief assistance in various forms.
View our corporate aid tracker for details on how businesses of all sizes and sectors are stepping up to combat the coronavirus. Corporate donations, both cash and in-kind, to support medical professionals and non-profits currently exceed $418 million.
NKY Chamber Daily Update: http://www.nkychamber.com/news/covid-19/