Globally, especially in the United States, the Coronavirus (COVID-19) pandemic has placed a significant strain on virtually every aspect of everyday life, especially work. In light of the disease’s continued growth, there is a growing concern in the United States about the health and well-being of our citizens and even the health and stability of our economic system. As a result, the United States Congress is currently debating a historic economic plan to help alleviate the destruction caused by the outbreak in the country.
Here are details as per William D King
A $2 trillion program to bolster the economy, which is still reeling from the deadly virus, has just been passed by Congress, indicating that their efforts have been fruitful. All Americans will do well to familiarize themselves with the package’s provisions because it would provide immediate assistance to both businesses and people.
This effort was crucial for us since it has the ability to lessen some of the economic strain we are experiencing and to assist us in getting through all these challenging times. Nonetheless, the CARES Act, like many other pieces of legislation, is lengthy, convoluted, and hard to navigate, particularly if you aren’t a politician or a lawyer.
Benefits for the Small Business
Firms that fit the SBA’s definition of a “small business concern,” as well as businesses with less than 500 employees, are eligible to apply under the new law. If you do not have a full-time or part-time worker, your overall number of “employees” includes individuals who engage with you periodically or on a temporary basis, which is not included in this program.
Benefits for the Department of Education
According to the CARES Act, the Department of Education will receive more than $30 billion to assist with rescue operations from across K-12 and higher education communities. 13.5 billion dollars were allotted to the Elementary and Secondary School Education Relief Fund (ESSERF), which provides relief monies to the K-12 environment during COVID-19. The remaining $30.75 billion was allocated to other purposes. Another source of money is the Governor’s Education Relief Fund (GEERF), which gives approximately $3 billion in support to a mixture of schools and colleges that are in the highest need and suffering the most severe consequences as a result of the COVID-19 disaster.
Benefits for the Employers
Employers can also benefit from a short payroll tax deferral under the CARES Act, which reduces their social security taxes. In this case, you would be able to defer payment of the business part of Social Security payments for the period commencing on March 27, 2020, and concluding on December 31, 2020, and ending on March 27, 2020, whichever is later.
William D King says that as a result, 50 percent of the deferred payments would just be due by December 31, 2021, as well as the remaining 50 percent would indeed be payable by December 31, 2022. Companies could retain entire responsibility for the ultimate payment of these deferred tax assets and liabilities under the CARES Act, and this would be true in the eyes of the IRS irrespective of whether they used a PEO/CPEO or not.