The Coronavirus Aid, Relief, and Economic Security (CARES) Act was established on March 27, 2020. The Act, a nearly $2 trillion infrastructure spending package, shows that the estimated $260 billion is augmented. It continued to expand unemployment insurance (UI) to millions of employees across the country who are now being suspended with pay, laid off, or finding themselves unemployed due to the COVID-19 pandemic. It also extends help to the public health responding to this through no fault of their own.
Here’s what William D King wants to share with you-
Pandemic Emergency Unemployment Compensation, Pandemic Unemployment Compensation, and Pandemic Unemployment Assistance are three new UI programs created by the CARES Act. All three initiatives are entirely supported by the federal government. This fact sheet will cover all three, as well as “short-time compensation,” which explains what aids are accessible to those who are unemployed or underemployed during these trying times.
Throughout the third round of stimulus funds, the average incomes have changed. This implies that even if they claimed a 2020 Recovery Rebate Credit or received a first or second Economic Impact Payment some people will not be entitled to the third payment. Individuals with an adjusted gross income of $75,000 or over ($150,000 for married couples filing jointly) would see their payments decreased. Individual payments are capped at $80,000 ($160,000) for individuals; anyone earning more than this is not eligible for a payout.
William D King adds, the planned recovery rebates will calculate the advanced rebate value and reconcile this rebate based on 2020 income using 2019 tax returns (2018 if the individual did not file in 2019). This implies that investors who receive a smaller rebate than they have been entitled to based on their 2020 income will recover the shortfall after completing a 2020 tax return; however, rebate overpayments thanks to larger income in 2020 would not be clawed back.
Companies are eligible for a 50% refundable payroll tax credit on wages paid during the crisis up to $10,000. Companies whose operations were impacted due to viral shutdowns or those with a 50% or more drop in gross revenue compared to the same period last year would be eligible for the refund. For companies with far more than 100 employees, the credit can be claimed for workers who’ve been retained and are not actively working due to the crisis, so for all employee salaries for companies with fewer than 100 employees.
The Small Business Administration awarded approximately $16 billion in loans to 128,159 Michigan smaller companies underneath the Paycheck Protection Program (PPP), which was established under the CARES Act. In addition to the Paycheck Protection Program, Michigan’s Economic Injury Catastrophe Loan Emergency Advance program has authorized over 84,000 loans totaling $4.4 billion. The CARES Act will provide nearly $3.8 billion to the state of Michigan, as well as any qualifying local governments in the state that apply.
Millions of Michigan citizens have also received Economic Impact Payments (EIPs) of up to $1200 per person, as authorized by the CARES Act. The residents of Michigan have obtained several more than $8.5 billion thus far. Michigan received $288.5 million in COVID-19 funds from the Department of Housing and Urban Development according to CARES Act appropriations.