CARES Act Explained

CARES Act Explained

We realize that this is a very uncertain time in our country and we encourage you to do everything you can to keep your family safe and healthy.

With so much legislation that can benefit individuals and businesses being recently passed, we wanted you to be aware of what is available to you.

Under the Families First Act Coronavirus Response Act (FFCRA), two types of paid employee leave have been expanded or established. For complete information, please visit: https://www.dol.gov/newsroom/releases/whd/whd20200401.

Under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), a $2.2 trillion bill, there are generous and unprecedented provisions for individuals and businesses.

Individuals

•    Recovery rebates of up to $1,200 for singles, $1,200 for heads of households and $2,400 for married couples filing jointly — plus $500 per qualifying child — subject to income-based phaseouts starting at $75,000, $122,500 and $150,000, respectively

•    Expansion of unemployment benefits, including for self-employed and gig-economy workers

•    Waiver of the 10% penalty on COVID-19-related early distributions from IRAs, 401(k)s and certain other retirement plans

•    Waiver of required minimum distribution rules for IRAs, 401(k)s and certain other retirement plans

•    Expansion of charitable contribution tax deductions

•    Exclusion for certain employer payments of student loans

Businesses and other employers

•    Retention tax credit for eligible employers that continue to pay employee wages while their operations are fully or partially suspended as a result of certain COVID-19-related government orders

•    Deferral of the employer portion of payments of certain payroll taxes

•    Modification of net operating loss (NOL) and limitation on losses rules

•    Modification of the deduction limitation on business interest

•    Qualified improvement property technical correction, allowing qualifying interior improvements of buildings to be immediately expensed rather than depreciated over 15 years

•    Expansion of the ways the Small Business Administration (SBA) can help small businesses

For more information on how the CARES Act can provide assistance to small businesses through the SBA with the Paycheck Protection Program, please visit: https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses.

To learn more about the local response to COVID-19 and all of the resources available in our community, visit the Cullman Area Chamber of Commerce website at cullmanchamber.org and read through the information in the COVID-19 link at the top of the homepage.

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