Here are a few reminders about some of the current relief offerings for families, small businesses, and the self-employed.
Reminder about federal tax incentives for businesses under the Families First Coronavirus Response Act:
Payroll Tax Deferral:
To enhance cash flow so that businesses can better maintain operations and payroll, employers and self-employed individuals can defer payment of the employer share of the Social Security tax. The deferred employment tax can be paid over the next two years—with half of the required amount to be paid by December 31, 2021 and the other half by December 31, 2022.
If these amounts are being automatically deducted, you will need to arrange to have that stopped.
Coronavirus Economic Impact Payments and Tax Relief for Individuals and Families: Find help here. FAQs here.
Federal Reserve Board Actions:
Although these programs are not yet activated, they will be additional resources to supply liquidity to banks for lending, ensure credit flows, increase the flow of credit to households and businesses through the capital markets, and help state and local governments manage cash flow pressures.
The Main Street Lending Program will enhance support for small and mid-sized businesses that were in good financial standing before the crisis by offering 4-year loans to companies employing up to 10,000 workers or with revenues of less than $2.5 billion. Principal and interest payments will be deferred for one year. Eligible banks may originate new Main Street loans or use Main Street loans to increase the size of existing loans to businesses.
Read a press release on these initiatives.