The Senate Bill Cares Act
The government in general has been moving very quickly in the last couple weeks to provide relief to the country for the economic toll that this coronavirus has taken and with that speed we’ve now hit kind of a little lull in that speed. It’s not really a lull. The congress is still working at breakneck speed, but last night the senate passed their stimulus bill, it’s a $2 trillion bill and sent it down to the house and the house doesn’t plan on voting on the bill until tomorrow which is Friday. Now that’s really fast, but there’s a lot of people, me included, who are kind of saying well what is this actually going to look like and for them this feels a little bit like a stall. So until a bill passes, both the house and the senate, it’s sent over to the president to sign. We just don’t know all of the fine details, but we’re starting to get a pretty good outline of what this bill contains and you can look at my prior videos from yesterday for some of that summary. Let me quickly summarize a few things again. I won’t cover everything, but some things I haven’t mentioned.
- It does look like the self employed will qualify for unemployment benefits for this time period which is unprecedented. They haven’t paid into any unemployment insurance and yet they will be covered with unemployment benefits. So that looks like it will be in the final bill. Again we don’t know all the details. We don’t know how long it’s going to last, if it’ll look exactly like unemployment insurance for everybody else. We don’t have all the fine details yet. When the house and senate get on the same page and get a bill passed together then we’ll know, but it does look like that will be there.
- Small business interruption loans. I’ve talked about that a little bit. These are loans up to $10 million. They could be forgiven if businesses meet certain criteria and those criteria looks like it’s going to be around employment. So if small business maintains there workforce at some point there will be a forgiveness clause. There will be a point where they can be forgiven from those loans. You’re going to be able to take money out of your IRA’s penalty free and also any gains in those IRA’s if there’s any gain left would be taxed over a 3 year period so you wouldn’t take the hit all at once and of course there’s no penalties. That’s a good benefit.
- No R&B’s for 2020 that’s required minimum distributions from qualified plans. It looks like they’re going to move charitable deductions to above the line meaning it’ll become not an itemized deduction, but probably only to a small amount. I think the senate bill called for $300 so not a ton, but a little bit.
- A payroll tax credit for employers. This is one I haven’t talked about. The senate bill has a $10,000 payroll tax credit for each employee. We’ll see how that looks in the house bill, but basically a big pile of money sitting there for employers. That’s not a loan that can be forgiven, it’s not a reimbursement for sick leave. It’s a separate benefit, just simply a credit to employers for having employees. Extensions of time to file payroll taxes and carrybacks look like they might come back, at least that’s in the senate bill so that’s there.
- A suspension of student loan payments for 6 months as well as the accrual of interest. So no interest on those loans for 6 months, and I’m not sure if we’re going to have to apply for that or not. Again we don’t have the final bill so we don’t know quite yet, but I’m not exactly sure what the senate bill says about that application for that program.
In any case you can’t go out and grab any of these benefits today because the bill hasn’t passed, the house still has to do their job, the president has to sign it. It looks like the house will vote tomorrow. So early next week I will have more specific details and we’ll start going on this stuff. Of course if you need help, I’m more than happy to help you.