Summary of Coronavirus Aid, Relief, and Economic Security (CARES) Act

Credits: Beyond Financial

Includes those with no income  

If I have a past due debt to a federal or state agency, or owe back taxes, will my rebate be reduced? No, the bill turns off nearly all administrative offsets that ordinarily may reduce tax refunds for individuals who have past tax debts, or who are behind on other payments to federal or state governments, including student loan payments. The only administrative offset that will be enforced applies to those who have past due child support payments that the states have reported to the Treasury Department.

A child with a SSN would not be able to obtain the cash assistance if a parent is undocumented. If a married couple files together and one person is undocumented, both are disqualified from assistance.    

PUC may be paid either with the regular UI payment or at a separate time, but it must be paid on a weekly basis.

PUC is not income for purposes of eligibility for either Medicaid or CHIP.

To receive PEUC, workers must be actively engaged in searching for work. The bill explicitly provides, however, that “a State shall provide flexibility in meeting such [work search] requirements in case of individuals unable to search for work because of COVID-19, including because of illness, quarantine, or movement restriction.”

Eligible for retroactive benefits.

Applicants will need to provide self-certification that they are (1) partially or fully unemployed, OR (2) unable and unavailable to work because of one of the following circumstances:

• A member of their household has been diagnosed with COVID-19;
• They are providing care for someone diagnosed with COVID-19;
• They are providing care for a child or other household member who can’t attend school or work because it is closed due to COVID-19;
• They are quarantined or have been advised by a health care provider to self-quarantine;
• They were scheduled to start employment and do not have a job or cannot reach their place of employment as a result of a COVID-19 outbreak;
• They have become the breadwinner for a household because the head of household has died as a direct result of COVID-19;
• They had to quit their job as a direct result of COVID-19;
• Their place of employment is closed as a direct result of COVID-19; or
• They meet other criteria established by the Secretary of Labor.

Noncitizens who are not work authorized or were not work authorized when they were working.   

Workers who can either telework with pay or are receiving paid sick days or paid leave.

https://www.careeronestop.org/WorkerReEmployment/UnemploymentBenefits/unemployment-benefits.aspx

https://findahealthcenter.hrsa.gov

The Paycheck Protection Program (PPP) loan guarantees the business 250% times 1 month of payroll up to $10 million.

Sample Application:     www.sba.gov/document/sba-form–paycheck-protection-program-ppp-sample-application-form

• Payroll costs
• Interest owed on mortgage or other loan obligations
• Rent obligations
• Utility services
• All of the above obligations had to be enforced prior to February 15, 2020 

The amount of loan forgiveness will be reduced if there was a reduction in number of employers or reduction of more than 25% in wages paid to employees.

• Businesses can avoid penalty if the reduction in employment or wages that occurred between February 15, 2020 and 30 days after the enactment of the CARES Act is reversed by June 30, 2020.

This means the business should eliminate the reduction by re-hiring previously laid-off employees or restoring employees’ previous compensation levels.

(such as seasonal employees and independent contractors) per physical location – 

OR that

meets the SBA size standard for small business – 

OR you are a sole proprietorship, independent contractor, or self-employed

Business had to be in operation as of February 15, 2020

Business paid salary and payroll taxes and paid independent contractors (eg form 1099-MISC)

may already be SBA certified. Call them and set up an appointment to review your case – they will need to verify you are a legitimate business. Provide proofs of payroll expenses (monthly average of payroll costs going back 1 year) and IRS/nonprofit status.

Find a SBA certified bank by typing your zip code here: https://www.sba.gov/local-assistance/find/

Ethnic banks that have SBA loans include: Hanmi Bank, Bank of Hope, Woori America, HSBC

Try our payroll calculator and see how much you might qualify for (please note that this tool will not guarantee the amount you will receive – that will be reviewed by the lender)! PPP calculation

Information you MAY have to bring (This will be dependent on your bank):

• Business tax returns for the past 3 years (if 2019 is not available, please provide an explanation to the lender)
• Business records that show what date the business started (i.e. tax return, your state’s Secretary of State registration, IRS letter approving FEIN, etc.)
• Proof of payroll costs
• Form 941 – Employer’s Quarterly Federal Tax Return for each quarter of 2019
• Form 1099s – Miscellaneous Income
• Copies of canceled checks and invoices if the above tax documents are not available
• Fill out a schedule of liabilities (SBA Form 2202)
• Loan or mortgage records
• Rental agreement records
• Business description and history
• Corporate records that show you are a qualified officer to execute the agreement

Tax benefits

Allows employers to delay paying the employer share of payroll taxes

Requires that the deferred employment tax be paid over the following two years (by December 31, 2022)

Allows businesses (including pass-throughs) to offset up to 100% of taxable income with “carry back” losses 

Acceleration of corporate Alternative Minimum Tax credits 

Increased deductions for business interest 

Faster write-offs for business investments 

Excise tax on distilled spirits waived for use in hand sanitizer 

Above-the-line deduction for charitable contributions up to $300 and increase in limits on individual and corporate deductions for charitable contributions 

Waives tax penalty for early withdrawal of retirement funds

The credit is provided for the first $10,000 of compensation, including health benefits, paid to an eligible employee

For employers with greater than 100 full-time employees, qualified wages are wages paid to employees when they are not providing services due to the COVID-19-related circumstances described above.

For eligible employers with 100 or fewer full-time employees, all employee wages qualify for the credit, whether the employer is open for business or subject to a shut-down order.

In anticipation of receiving the credits, Eligible Employers can fund qualified wages by accessing federal employment taxes, including withheld taxes, that are required to be deposited with the IRS or by requesting an advance of the credit from the IRS.