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  • CARES ACT (COVID 19)




  • CARES ACT (COVID 19)

    INFORMATION REGARDING CARES ACT (COVID-19 STIMULUS)

    This letter is being sent to inform you of the provisions detailed in the Coronavirus Aid, Relief, and Economic Security (CARES) Act that provide relief for business and individuals.  In an effort to keep this as brief as possible, we are sharing these items in an abbreviated format.  If you have questions about your specific situation, we will do our best to respond to them with the information we have available to us. 

    We will divide this presentation into information pertaining to individuals and information for businesses, followed by recommendations where appropriate.  As this is all new, the information being released is somewhat fluid and may change as more information comes out.

    CARES Act Provisions for INDIVIDUALS:

    Stimulus Payments for Taxpayers

    • $1,200 per adult, $1,200 for spouse, $500 for each dependent child under 17
      • NOTE: If your 17 and over child is a dependent, you should not receive payment for them.  If your 17 and over child claims themselves on their own tax return, they should receive $1,200
    • If your Adjusted Gross Income (AGI) is above $75,000 (single) or $150,000 (married) your payment will be reduced (phased out).  If your AGI is a above $99,000 (single) or $199,000 (married) you will not receive a payment
    • The payment will be based on last filed return.  If you have not yet filed your 2019 return, it will be based on your 2018 return
    • The payment will not be taxable
    • Those who are not required to file but receive Federal assistance (Social Security and VA Disability) should also receive stimulus payments.  You will not have to file any information to receive a payment (the IRS initially announced they did, but has since reversed that announcement
    • These payments will be distributed within the next 3 weeks (mid-April) according to information released by the IRS

    Paid Medical Leave for Workers

    • If you are required to quarantine and miss work because you or someone under your care has contracted the Coronavirus, there are protections for you to keep your job and still receive limited paid leave while away from work.
    • You are granted protection and leave for staying at home with your children if their school or daycare is closed due to Coronavirus

    Unemployment Compensation

    Recommendations for Individuals

    • The IRS will soon release a website for updating direct deposit information for stimulus payments (note: you ARE NOT required to give information, it is just an option available to you).  If you have moved or changed bank accounts, we highly suggest you look for this announcement
    • If you or a member of your household are quarantined, talk to your employer about options available to you to work from home or go on medical leave
    • If you are laid off because of Coronavirus hardship on your employer, and they have not filed for the unemployment shared work program, we suggest you file for unemployment.  (Link above)

    CARES Act Provisions for EMPLOYERS:

    Employer Requirements

    • Employers are required to provide paid leave under the Emergency Family and Medical Leave Expansion act for employees who are quarantined due to contraction of the Coronavirus by them or a member of their household.  Payments and leave are subject to limitations
    • Employers are also required to provide paid leave for employees who cannot work because of school or childcare closure due to coronavirus. Payments and leave are subject to limitations
    • Employers are required to inform employees they are eligible for unemployment benefits if they are laid-off due to coronavirus
    • Unemployment benefits may also be available to business owners/sole proprietors

    Employer Benefits

    • Employers are eligible for tax credits for 100% of wages paid to employees who take leave for coronavirus illness and/or school and daycare closure.  The amount of tax credits include benefits and payroll taxes paid during leave.
    • Employers will be eligible for the Employee Retention Credit on their quarterly 941 tax forms
      • Employers who suffer 50% loss (in revenue) compared to the prior quarter -OR- the business has been fully or partially suspended by government order due to COVID-19
      • Credit will be a reduction of 941 deposits required that have been withheld from employee wages
      • Form 7200 (Advanced Payment of Employer Credits Due to COVID-19) will be filed in conjunction with the quarterly Form 941 filed each quarter
    • Employers are eligible for Paycheck Protection Program (PPP) loans available to help cover expenses during economic downturn.   
    • Small Business are also eligible for the SBA’s Economic Disaster Recovery Loan Program
      • Provides small businesses with working capital loans advance of up to $10,000
      • Contact your SBA rep or lender for information

    EMPLOYER RECOMMENDATIONS:

    • If you are laying off your employees or giving them furlough due to the coronavirus outbreak, contact the Texas Workforce Commission on behalf of your employees.  You will fast track the approval process for them to receive unemployment.  Go to their website for more information: https://www.twc.texas.gov/news/covid-19-resources-employers
    • If you think you are eligible for the SBA Loans available to small business (PPP and ERDL), contact your local SBA office about eligibility for SBA loans available to you under the CARES Act
    • If you are continuing to operate during this economic downturn, be careful to follow the guidelines for paid leave.  Let us know if you are faced with this issue.


    04/02/2020





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