Information From Our Friends in the Business Office

April 3, 2020

Posted in

CARES ACT INFORMATION

As you may know, the US Congress has passed legislation that has been signed into law that assists employees during the COVID-19 outbreak.  Below is a summary of benefits to employees under the law.  Our top goal is the care for our residents and the safety and security of our employees.  It is our hope that disruptions to our employees is minimal during this time.  Please contact the Human Resources Department with specific questions about the benefits under the law.  Thank you.

Here are some of the key provisions of the Act.

  1. A check – Based on income and family makeup, most Americans can expect to receive $1,200 individually ($2,400 for joint filers) and $500 per dependent. Amounts phase out for those who reported adjusted gross incomes over $75,000 for individuals and $150,000 for joint filers in 2018 or 2019.
  2. A buffer – The CARES Act eliminates the 10% early withdrawal penalty for coronavirus-related distributions from retirement accounts. Withdrawn amounts can be repaid to the plan over the next three years. In addition, required minimum distributions (RMDs) are waived for 2020.
  3. Support for small businesses – In the form of more than $350 billion dollars to help keep businesses afloat.
  4. Expanded unemployment benefits – Unlimited funding to provide workers laid off due to COVID-19 an additional $600 a week, in addition to state benefits for up to four months. Please note, healthcare employees, including UV employees, are exempt from this provision.
  5. Fortified healthcare – $100 billion is allocated to hospitals, other health providers, and state and local health agencies to help offset costs and provide relief.
  6. Enhanced education – $30 billion to bolster state education and school funding, as well as the deferral of federal student loan payments through the end of September.
  7. State and local government funding – $150+ billion allocated to “state stabilization funds” to combat the pandemic and economic crisis and provide supplemental funding for joint state-federal programs like unemployment compensation and Medicaid.
  8. Other provisions – A $500 billion buffer for impacted and distressed industries and general economic support, with loan guarantees for medium to large businesses, as well as states and municipalities. This includes specific provisions for airlines, air cargo and national security organizations. The Economic Stabilization Fund is intended to provide loan support for businesses/nonprofits between 500 and 10,000 employees with the interest rate capped at 2% and forbearance on federally backed loans for 60 days.

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