March 17 COVID-19 Update

Here is the latest news on the coronavirus pandemic.  Stay Calm and  Remember ... this too shall pass!

An economic stimulus package, possibly topping $1 trillion is currently being negotiated by White House and Congress. Many options for assistance for small and medium businesses as well as direct “stimulus” payments to citizens are being seriously finalized.  As much as $250 million may be set aside for small business assistance and a temporary cut or suspension of the payroll tax cut through the end of the year may be instituted. Details still unfolding.

Here are some of the major provisions in the House Passed Measure: (With Excerpts From New York Times and Washington Post)

1)  Paid leave for workers
Some workers will receive two weeks of paid sick leave at 100 percent of normal salary, up to $511 per day and up to three months of paid family and medical leave, equal to no less than two-thirds of their pay, up to $200 per day.  It also applies to workers who have worked at the company for at least a month.  These benefits only apply to “employees of businesses with fewer than 500 employees, or the government, who are infected by the virus, quarantined, have a sick family member or are affected by school closings”.  Companies with under 50 workers can apply for a waiver from the paid family leave.   The “Labor Department will have the option of exempting workers at any company with fewer than 50 employees, if it determines that providing paid leave 'would jeopardize the viability of the business as a going concern.'"

“Companies covered by the policy will not foot the bill for paid leave. The government is providing new tax credits to both help offset the costs of accommodating the new mandate and the economic impact of the outbreak” according the NY Times article. “The credit is applied to the tax the company normally pays for each employee’s Social Security. (This is the 6.2 percent tax employers pay on each employee’s salary.) If sick leave or family and medical leave ends up costing more than the Social Security bill, the U.S. government will send the employer a check to cover the remaining costs. How this will be determined is up to the Treasury and the Internal Revenue Service.” – Washington Post

2)           Free coronavirus testing for all, including the uninsured.

3)           Increased funding for food assistance programs.

4)           Strengthened unemployment insurance benefits:

The Trump administration will ask for an $850 billion package to counter economic fallout.

The Trump administration is preparing to ask for about $850 billion in additional stimulus to support the economy, which is facing a deep downturn as businesses close as coronavirus spreads.

A centerpiece of the proposal is the payroll tax cut that President Trump has been calling for. 

Click to read full article HERE.