Coronavirus Stimulus Package

The Senate and the White House approved the Coronavirus stimulus package to sustain workers and businesses that are losing income as the majority of the American economy is shutting down under quarantine orders. Washington officials came into an agreement early Wednesday morning on an approximately $2 trillion stimulus measure to send direct payments and benefits to individuals and businesses. Legislation, which will be enacted within days, includes the following:

• One-time payments of $1,200 per adult and $500 per child
• $367 billion for small businesses
• $500 billion for loans to larger industries
• $100 billion for hospitals and health system
• $50 billion for protective equipment for health care workers, testing supplies, workforce training, new construction to house patients, and coronavirus medical research.
• A $600 increase in the maximum weekly unemployment benefit for four months
• $150 billion for a state, local and tribal fund
• The creation of a Treasury Department office to oversee the distribution of loans
• A provision that no loans can go to businesses controlled by President Donald Trump, members of his administration, members of Congress or their families

In addition, the U.S. Treasury Department, Internal Revenue Service (IRS), and the U.S. Department of Labor earlier announced that small and midsize employers may begin taking advantage of two new refundable payroll tax credits, provided under the Families First Coronavirus Response Act signed on March 18, 2020, a second package from Congress dealing with the Corona outbreak. These credits are available immediately for businesses with fewer than 500 employees. Employers with fewer than 50 employees are eligible for an exemption from the requirements to provide leave to care for a child whose school is closed, or childcare is unavailable in cases where the viability of the business is threatened. The Act is designed to fully reimburse businesses dollar-for-dollar for the cost of providing Coronavirus-related leave to their employees.

We will be monitoring any guidance that is issued on these new provisions. If you have any questions, do not hesitate to contact our office directly. Additional and updated information, please visit Coronavirus Tax Relief on IRS.gov.