New COVID Relief Bill & What it Means for You
In March, Congress passed the CARES Act, which offered many forms of economic relief from the pandemic. Late Monday night, they passed a new relief bill, which extended some of that relief. This is what you need to know.
For Individuals
The new act provides a refundable tax credit of $600 to eligible individuals, plus an additional $600 per child. The act also extends Federal Pandemic Unemployment Compensation (FPUC) at $300 a week until March 14, 2021. This amount is in addition to any state-level unemployment benefits, and to receive it, you do not need to do anything additional to applying for unemployment in your state.
For Businesses
The new provisions cover a lot of ground when it comes to business-related relief. Here are the highlights:
- Secretary of the Treasury is required to issue regulation or guidance that personal protective equipment (PPE) and other supplies used to limit the spread of COVID-19 are treated as eligible for the educator expense deduction.
- The new act clarifies that expenses paid with Paycheck Protection Program (PPP) loans are deductible, whether those loans have to be repaid or have been forgiven.
- Families First Coronavirus Response Act extended through the end of March 2021, which includes the refundable payroll tax credits for paid sick and family leave.
- Finally, the new act creates a second PPP loan called “PPP second draw,” specifically for smaller and harder-hit businesses (max amount $2 million).
This new Relief Bill has a lot of moving parts, with new provisions and extensions of old ones. If you need help sorting through it all, give us a call! 770-392-1113.
-Stanley & Kelly
