Congress officially passed the American Rescue Plan (ARP) to provide assistance to individuals and businesses struggling due to COVID-19. This $1.9 trillion bill, expected to be signed on Friday, March 12 by President Biden, will be one of the largest stimulus packages in US history, providing broad-based aid to state and local governments, and hard-hit industries and communities. How will this benefit your business and employees? Unemployment InsuranceA $300 per week federal “jobless aid supplement,” in addition to states’ unemployment benefits, will be extended through September 6, 2021. The benefit will also provide a tax exclusion from the first $10,200 of unemployment compensation received by individuals during 2020. Paid Sick and Family LeaveWhile this bill will not make the paid leave mandatory again, it will continue to provide a tax credit that was established through the Families First Coronavirus Response Act (FFCRA) to employers who voluntarily choose to offer the paid leave benefit to employees. This benefit is now extended through September 30, 2021, and it is expanded to include:
Stimulus ChecksYes, another round of stimulus checks is coming. Checks up to $1,400 will be sent out to Americans, depending on their income; this includes individuals who make less than $75,000 per year, along with single parents that earn less than $112,500 per year and couples that bring in a total of less than $150,000. Families can get an additional $1,400 per child. Small Businesses$15 Billion will be used towards the Emergency Injury Disaster Loan Program and $7 billion to the Paycheck Protection Program. There will also be an additional $25 billion for a new funding program, specifically for bars and restaurants. VaccinesThe bill accounts for $20 billion to go towards the manufacturing and distribution of COVID-19 vaccines, as well as $50 billion towards testing and contract tracing. Child Tax CreditThe child tax relief credit will be extended for one year. It will also increase to $3,600 for children under 6-years-old and to $3,000 for children between the ages of 6-years-old and 17-years-old. Both of these cases will be an increase from the current $2,000 per child under 17-years-old credit. Housing Aid$20 Billion will go towards state and local governments in order to help cover rent and utilities for low-income households, and another $10 billion is earmarked to help struggling homeowners pay mortgages, utilities, and property taxes. The expansion of the Paid Sick and Family Leave is particularly pertinent to small-mid-sized businesses and their employees, particularly as the virus continues to spread. For assistance understanding and administering this benefit, please contact us.
via EnformHR, LLC https://ift.tt/3qETyyA
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July 2023
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