COVID-19 Information The CARES Act Explained

Direct payments: In the near future, if you made $75,000 or less ($150,000 for a married couple), you are going to receive a direct deposit or check for $1,200 ($2,400 for a married couple) from the federal government, with an extra $500 for every child you have. Above those income levels, smaller checks will be issued to singles with incomes between $75,000 and $99,000 or couples earning between $150,000 and $198,000.

If you filed a 2018 tax return or have already filed a 2019 tax return, these payments will be sent automatically.

Extra unemployment payments:

• The bill makes major changes to unemployment assistance, increasing the benefits and broadening who is eligible. States will still continue to pay unemployment to people who qualify. That amount varies state by state, as does the amount of time people are allowed to claim it.
• This bill adds $600 per week from the federal government on top of whatever base amount a worker receives from the state. That boosted payment will last for four months.
  For example, if an out-of-work person is receiving the national average of about $340 per week, under the new federal program their take-home pay will be $940.
• The legislation also adds 13 weeks of unemployment insurance. People nearing the maximum number of weeks allowed by their state would get an extension. New filers would also be allowed to collect the benefits for the longer period.

Gig workers and freelancers: Typically, self-employed people, freelancers and contractors can’t apply for unemployment. This bill creates a new, temporary Pandemic Unemployment Assistance program through the end of this year to help people who lose work as a direct result of the public health emergency.

To Learn More – https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know

On March 27, 2020, President Trump signed the CARES Act into law. The CARES Act provides enhanced Unemployment Insurance benefits and Pandemic Unemployment Assistance for New Yorkers.

What should I do if I’m already approved for Unemployment Insurance Benefits?
Do nothing except continue to certify weekly. Your benefits will automatically be updated. You may qualify to receive:

• 39 weeks of UI benefits.
• An additional $600/week until 7/31/2020. (Payments begin 4/5/2020)

What should I do if I’m not traditionally eligible for Unemployment Insurance benefits?

The CARES Act expands coverage to more workers, including self-employed, contractors and furloughed workers. For more information and to check your eligibility for Pandemic Unemployment Assistance visit labor.ny.gov/ui/cares-act.shtm. If you believe you are eligible, apply online at labor.ny.gov/signin. You may also call 1-888-209-8124 if you do not have access to a computer.
You may qualify to receive:

• 39 weeks of UI benefits.
• An additional $600/week until 7/31/2020. (Payments begin 4/5/2020)

What should I do if I’m filing a new Unemployment Insurance claim?
Apply online at labor.ny.gov/signin. You may also call 1-888-209-8124 if you do not have access to a computer. You may qualify to receive:

• 39 weeks of UI benefits.
• An additional $600/week until 7/31/2020. (Payments begin 4/5/2020)

For more information, please see Frequently Asked Questions About UI During the Coronavirus Emergency: labor.ny.gov/ui/coronavirus-faq.shtm

To apply for Unemployment Insurance benefits file on these days based on the first letter of your last name:

• A-F file on Monday | G-N file on Tuesday | O-Z file on Wednesday n
• Missed your day? File on Thurs-Fri-Sat

The bill provides $100 billion for hospitals, community health centers and other providers to assist with their response to the COVID-19 pandemic. This funding is designed to be flexible, so that medical providers can use it to prepare and to respond to the current emergency. Separate funding of $16 billion will help replenish our National Strategic Stockpile of vital items like personal protective equipment (PPE) and respirators. And, $11 billion will be used to research vaccines and treatments for COVID-19.

On March 27, 2020, President Trump signed the CARES Act into law. The CARES Act provides assistance to small businesses through the U.S. Small Business Administration.

Small businesses, sole proprietorships, independent contractors and private non-profit organizations in New York State that suffered substantial economic injury as a result of the COVID-19 epidemic are eligible for low-interest federal disaster loans through the SBA of up to $2 million, and a grant of up to $10,000, which may not have to be repaid, even if the loan application is denied. Applications are processed on a first-come, first-served basis and the $10,000 grant should be paid within three days of an application. The streamlined application process can be found at https://covid19relief.sba.gov.

• Loans may be used to pay fixed debts, payroll, accounts payable and
  other bills that can’t be paid because of COVID-19’s impact.
• The interest rate is 3.75% for small businesses without other available credit.
• The interest rate for non-profits is 2.75%.
• These loans offer long-term repayments up to 30 years.
• Terms are determined on a case-by-case basis.
• Apply for an SBA loan at SBA.gov/disaster.

Paycheck Protection Program

The CARES Act also creates the Paycheck Protection Program to provide small businesses (up to 500 employees) with funds to pay up to 8 weeks of payroll costs, including benefits. Funds can also be used to pay interest on mortgages, rent and utilities.

The funds will be issued as loans that are fully forgiven if the employer maintains or quickly rehires employees. The program covers small businesses, nonprofits, self-employed individuals, sole proprietorships and independent contractors. Because of funding caps, apply as quickly as possible through any SBA lender or federally-insured bank or credit union. For more information, visit https://www.coronavirus.gov/smallbusiness.

FAQ: Payroll Protection Program

When can I apply?

• Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
• Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
• Other regulated lenders will be available to make these loans as soon as they are approved and enrolled in the program.

What do I need to apply?

• You will need to complete the Paycheck Protection Program loan application and submit the application with the required documentation to an approved lender that is available to process your application by June 30, 2020.

How much of my loan will be forgiven?

• You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 8 weeks after getting the loan.
• Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs. You will also owe money if you do not maintain your staff and payroll.
• Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount.
• Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.
• Re-Hiring: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.

You may also visit www.sba.gov or www.treasury.gov to find more information about the Paycheck Protection Program and other resources offered through the CARES Act.