Stimulus packages information

04/01/2020

Here is some info that was just released by Paychex about the different stimulus packages available to companies and updates.

With the CARES Act now signed into law, lawmakers are indicating that a fourth coronavirus relief bill is already in the works. The next bill will likely focus on funding for healthcare workers and the equipment needed for recovery by those who’ve already contracted the virus, according to House Speaker Nancy Pelosi. Republicans are looking to provide aid to rural healthcare providers. Although the fourth package will probably not contain the type of sweeping economic measures found in the previous one, it may include some relief such as pension fund support, which Pelosi unsuccessfully pushed for in the previous bill.

Congress used expansion of the Small Business Administration SBA’s 7(a) loans to create the Paycheck Protection Program- see attached application and fact sheet. Under the program, businesses will be able to apply with an approved lender for a loan of up to $10 million or 2.5 times their monthly payroll. The borrower would be eligible for loan forgiveness equal to the amount spent for 8-weeks after the loan’s origination on maintaining payroll (with a $100,000 limit per employee), mortgage, rent, and utility payments to Feb. 15, 2020, levels. The SBA will guarantee the full amount of loans to lenders while advising them not to assess applicants’ ability to repay. Applications can start being submitted 4/3/2020.

1-855-232-4055 Speak with a Biz2Credit Loan Expert

https://www.paychex.com/business-loans- ***you do not need to be a Paychex client to use this link.

What you get with the Paychex Small Business Loan Center

24-hour pre-qualification (for working capital products)

Higher approval rates

Access to a funding specialist for help

A beginning-to-end solution; complete a single application and submit all needed documentation online

The best funding options matched to your business

In the wake of the federal COVID-19 legislation, the Family First Coronus Response Act, state and local governments continue to release legislation, orders and guidance to clarify the interplay between the Emergency Paid Sick Leave Act, the Emergency Family and Medical Leave Expansion Act and their own jurisdictional paid leave laws and programs. Compliance continues to track developments issued by government agencies, including recent emergency legislation from NYS that allows for paid sick leave and expanded use of the state’s Paid Family Leave and Disability benefits, effective March 18^th. Other states and localities have expanded leave to cover COVID-19 testing and employees impacted by a public health order for quarantine.

In response to the COVID-19 pandemic, the IRS announced changes intended to provide relief to taxpayers starting April 1 through at least July 15. In addition to the well-publicized tax filing/payment extensions, these include a cease in new examinations except for situations where a new examination is necessary to protect against an expiration of the applicable statute of limitations. Payments due under existing installment agreements and Offers In Compromise arrangements will be suspended during the period, although interest will continue to accrue. As well, many liens and levies will be suspended during the initiative period; the IRS will not forward new delinquent tax accounts to private collection agencies during this period.

The CARES Act contains several retirement-related proposals. Investors will be permitted, under expansive guidelines, to take a withdrawal from their retirement accounts of up to $100,000, without early-withdrawal penalty, and sums withdrawn can be recontributed within three years without annual contribution caps. If it’s not repaid, the withdrawal will be taxed at ordinary income tax rates over a three-year period. The 401k loan limit would increase from $50,000 to $100,000 , and due dates for new loans or loans already outstanding would be extended by a year. Also, in recognition of stock market losses, the bill would suspend for 2020 the minimum required distributions from tax-deferred 401(k)s and IRAs.