2020 Legislation Changes Due to COVID-19

Over the last several days we have created several documents to assist you with understanding all of the legislation recently passed.  These documents are not intended to answer every question you may have, but are intended to provide you with enough information to determine whether the provisions may, or may not, apply to you.  If you have questions regarding any of the specific provisions, we will be glad to consult with you regarding your specific situation.

Many of the technical provisions of this legislation are still being sorted out.  Therefore, please understand it may take weeks for the IRS and legislators to clarify how to apply the provisions of the legislation.  We are researching all of this extensively and will do our best to assist you and provide information as it becomes available. 

The various summaries we have prepared at this time are listed below with a link to the referenced summary on our website.  If you prefer, you can access this information directly from our website on the “Resources” tab “2020 Legislation Changes due to COVID-19”.

Families First Coronavirus Response Act (FMLA)

• Paid Sick Leave and Family Leave due to COVID-19 under the Families First Coronavirus Response Act.

Stimulus Checks Under the CARES Act

• Rebate Checks under the CARES Act (“Stimulus Checks”).

Paycheck Protection Program (PPP) Under the CARES Act

• Paycheck Protection Program under the CARES Act (“PPP” Loans through the SBA with a potential loan forgiveness provision).
• PPP Update Notice 2020-32 (May 1, 2020)
• PPP Forgiveness Q&A (June 1, 2020)
• Paycheck Protection Flexibility Act (June 4, 2020)
• PPP Loan Forgiveness Updates Webinar (June 26, 2020)

Employee Retention Credit Under the CARES Act

• Employee Retention Credit under the CARES Act – Allows for tax credits to reimburse employers for wages paid to employee during a period when the business is experiencing and economic downturn due to COVID-19

Payroll Tax Deferral Under the CARES Act

• Payroll Tax Deferral under the CARES Act – Allows an employer to defer payment of 50% of certain federal payroll taxes until 2021 and 2022.

Expanded Unemployment Benefits Under the CARES Act

• Expanded Unemployment Benefits under the CARES Act – Allows for unemployed workers to receive an additional $600 in federal unemployment, including unemployed individuals.

Retirement Accounts Under the CARES Act

• Retirement Accounts under the CARES ACT - Restrictions and requirements related to withdrawals due to RMDs, loans and early distributions have been eased to reduce penalties and allow access to retirement funds during the economic downturn.

Federal Student Loan Payments Under the CARES Act

• Federal Student Loan Payments under the CARES Act – are suspended for any payments due between March 27, 2020 and September 30, 2020. Additionally, requirements under Pell Grants and Work Study programs have eased.

Miscellaneous Income Tax Provisions Under the CARES Act

• Miscellaneous Income Tax Provisions under the CARES Act – Allows for special income tax provisions concerning charitable donations, expanding the definition of qualified medical expenses under “HSAs”, “MSAs” and “FSAs”, net operating losses and qualified improvement property.

We hope you find this information helpful.  Please contact us if you need additional information or assistance.

We hope you stay safe and healthy.

Sincerely,

David and Ladoska