COVID-19 Relief Bill - What It Means for Employers

COVID-19 Relief Bill - What It Means for Employers
President Trump has signed the new COVID-19 Relief Bill. The bill's key points are outlined below.

Paid Sick and Family Leave Credits:

• Extends the paid sick and family leave credits against employment taxes from the Families First Coronavirus Response Act (FFCRA) for three additional months to March 31, 2021.

• The bill does not extend the FFCRA’s mandate to provide paid sick leave or paid family and medical leave beyond December 31, 2020. Employers may voluntarily offer to pay for COVID-19 sick leave and still receive the employment tax credit. Please call Integrated at 801-487-3000 with any questions.

Paycheck Protection Program and Other Small Business Assistance:

• Creates a second loan from the Paycheck Protection Program, called a “PPP second draw” loan for smaller and harder-hit businesses, with a maximum amount of $2 million. Businesses may have to prove a decrease in profit to qualify.

• Expands the expenses that can be covered by a PPP loan.

• Makes the expenses covered by PPP loans tax deductible

Unemployment Insurance:

• Unemployed individuals get an additional $300 per week from December 26, 2020 to March 14, 2021.

• Extends and phases out Pandemic Unemployment Assistance (PUA), a temporary federal program covering self-employed and gig workers, to March 14, 2021 and extends benefits from 39 to 50 weeks with all benefits ending April 5, 2021.

• Extends and phases out Pandemic Emergency Unemployment Compensation (PEUC) which provides additional weeks when state unemployment runs out, to March 14, 2021 (after which no new applications) through April 5, 2021.
Key Points Download