Cares ACT Highlight

The CARES act passed the House and Senate this week, with the President signing it into law on Friday March 27th 2020, and this is the third Coronavirus related bill to be passed and signed by the bill.

With over 1,00 pages there are many different items in the bill, here are some highlights of the overall bill:

1. Paycheck Protection Program (PPP) 
   1. Businesses fewer than 500 employees
   2. Self-Employed
   3. Loan for payroll, rent/mortgage, utilities and debt
   4. 2/15/20 - 04/30/20 
   5. year later not reduced anything by more than 25% loan forgiveness
2. Retirement Savings
   1. RMD's are suspended for 2020
   2. Participants can borrow up to $100,000 for coronavirus related with stretched out repayment
   3. Waives penalty tax on early withdrawl
   4. Allows a single employee db plan to stretch out contributions
3. Employee Retention Tax credit
   1. 50% tax credit on employer portion of payroll taxes
4. Deferment of Payroll Taxes, spread over 2021 and 2022
5. Unemployment Compensation Benefits
   1. Bill expands @ federal expense to 4 months with an additional $600 a week,
6. Direct payments to individuals 
   1. Cash payments 1200 to each adult and 500 for each child up to 75,000 single and 150,000 married, and reduced and phased out up to $99,000.
   2. Loan program for business