Stimulus Package Benefits and Small Business Assistance Programs

You’ve probably heard that you may be getting a $1,200 check, or more, from the IRS. Here are some quick facts regarding the payments:

$1,200 Payment

• Amount is per recipient; married persons will receive $2,400

• Eligible persons include taxpayers and social security recipients

• Payment based on 2019 tax return if filed

• Alternately based on 2018 return or Social Security records

$500 Additional Qualifying Child Payment

• Per dependent child under age 17

• No payment if claimed as a dependent on another tax return

Income Phase-Out

• Based on adjusted gross income

• $75,000 single taxpayers / $150,000 married taxpayers

• Payments are reduced by $5 per $100 in income over the thresholds

You may have also heard of several other relief programs available to individuals and small businesses. Here is the list of programs and some key facts including:

Emergency Paid Sick Leave

• Up to 10 days of sick pay for those affected by the Corona Virus

Enhanced Unemployment Benefits

• Extended coverage for an additional 13 weeks

• $600 payment per week in addition to state calculated benefits

• Available to self-employed persons and independent contractors

Small Business Assistance Loans Programs

For payroll costs (Payroll Protection Program “PPP”)

• Loan amount is the average of 2.5 times the monthly payroll cost, capped at $10 million

• Loan forgiveness is available if funds are spent on payroll costs, mortgage/rent on building & utilities

For working capital costs (Economic Injury Disaster Relief Loans “EIDL”)

• Emergency $10,000 grant available

• Loan forgiveness is not available, loan deferment may be available for up to one year

• Loan can be used for operating expenses and other costs

Payroll Tax Programs

• Employee Retention Credit – refundable payroll tax credit for 50% of wages paid, up to $10,000 of compensation

• Payroll tax deferral for 2020 employer payroll taxes due in two equal installments, one at the end of 2021 and one at the end of 2022

Each program has additional criteria to qualify for the benefits. The regulations are complex and the right programs will vary for each individual and business. If you have questions on the stimulus benefits or the other relief programs please contact me at josie@jparrcpa.com or (717) 577-3632.

I sincerely hope you are doing well and staying healthy.