By: Pooja Srivastava
On August 8, 2020, President Donald Trump filed a series of executive orders to provide additional economic relief to Americans amid the coronavirus (COVID-19) pandemic.
- Certain individuals can defer the withholding, deposit, and payment of the 6.2% payroll tax. Deferral is available for employees whose bi-weekly pay is less than $4,000 pre-tax (approximately $104,000 a year).
- The tax deferral is available for wages paid between September 1, 2020 to December 31, 2020.
- Individuals can defer their payroll taxes without penalty or interest.
- Payroll taxes generally include social security and Medicare. These taxes are split evenly between employers and employees.
- The Secretary of the Treasury will “explore avenues,” including legislation, to forgive these deferred tax payments.
- The Secretary of Education will waive all interest due on Department of Education student loans through December 31, 2020.
- The agency will also continue hardship deferment programs that allow certain individuals to temporarily stop making student loan payments through December 31, 2020.
- Of the 110 million Americans who live in rental housing, at least 30 millionare at risk for eviction by the end of September 2020.
- The CARES Act temporarily blocked evictions of certain renters. That moratorium has expired, and there is now a significant risk of mass evictions. Landlords can now begin charging late fees, and they can file evictions on or after August 24, 2020.
- This order directs the Secretary of the Treasury and the Secretary of Housing and Urban Development (HUD) to allocate federal funds to temporary financial assistance for renters and homeowners.
- The CARES Act provided an additional $600 per week to individuals collecting unemployment benefits. These benefits recently expired.
- Under this executive order, individuals can receive additional unemployment benefits of up to $400 per week from September 1 through December 6, 2020. Over $44 billion in Federal Emergency Management Agency (FEMA) funding will cover 75% of this cost, while states must cover the remaining 25%.
For help understanding how these new COVID-19 relief measures impact you or your business, please contact your trusted Chugh CPAs, LLP professional.