IRS Updates Payroll Tax Deferral FAQs Following Enactment of the Paycheck Protection Program Flexibility Act of 2020

Following the enactment of the Paycheck Protection Program Flexibility Act of 2020, the Internal Revenue Service (IRS) updated its frequently asked questions (FAQs) to state that employers whose Paycheck Protection Program (PPP) loan has been fully or partially forgiven are now eligible to defer the deposit of the employer portion of Social Security tax.

House Democrats Unveil HEROES Act, $3 Trillion Bill Responding to COVID-19 Crisis

On May 12, 2020, Democrats in the U.S. House of Representatives unveiled the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, the latest effort to respond to the ongoing coronavirus health care crisis. Among other provisions, the $3 trillion relief package would provide $1 trillion in aid to states, $75 billion for coronavirus testing and related healthcare measures, and another round of direct stimulus payments to individuals.

Payroll Relief Under the CARES Act Softens the Financial Impact of COVID-19 for Employers

On March 25, 2020, the U.S. Senate voted unanimously (96-0) to pass the Coronavirus Aid, Relief, and Economic Security (CARES) Act as an attempt to stabilize the U.S. economy disruptions in the wake of the COVID-19 pandemic. The CARES Act aims to boost the economy with over $2 trillion in tax and non-tax emergency aid provided to individuals and businesses. The U.S. House of Representatives approved the bill on March 27, 2020, which is now pending presidential signature.

President Trump Signs the Families First Coronavirus Response Act

On March 18, 2020, the U.S. Senate passed the U.S. House of Representative’s “Families First Coronavirus Response Act,” by a vote of 90-8, and President Trump signed the act into law the same day.  The law does not contain any changes to the House versions of the legislation that were passed on March 14, 2020, and March 16, 2020. Next up will be “Phase 3” of Congress’s response to COVID-19, which will likely center around a massive economic stimulus.