2021 Stimulus Update

Rachel Comella’s HR career spans 20 plus years with experience in many corporate entities. Rachel holds a Master’s Certification in Employment Law from George Washington University and a Bachelor’s degree in Public Speaking from the University of South Florida. She has been a member of SHRM and HR Tampa since 2001.

Certipay has been her home base for the last 5 years where she has provided high level HR consulting to C-Suite, Executive and Senior level managers across the country. She has also developed a training and live webinar program for employees, clients, and leaders in order to increase knowledge on HR topics and COVID-19.

In our first Coffee Break of the year we discuss the new stimulus package. Watch to learn more!

We cover portions of the bill that are relevant to business owners. Disclaimer: information is changing frequently, we promise to get information as soon as we have it.

• Unemployment
  • $300 per week added to state maximums.
  • Extended to March 14th.
  • 50 week benefit total.
• Direct Payments
  • Cap of $600 per person
  • Based on income from 2019
• FSA Roll over- Flex Spending Accounts
  • Applies to both medical and childcare funds.
  • Childcare age limit is extended to 14.
  • Extended grace period through end of 2021 so people won’t lose funds.
  • Unused funds from 2021 can be carried over and used through end of 2022.
  • The $550 cap is removed.
  • Employers may choose to allow participants to change funding amounts without a qualifying event. This is optional as a business owner.
• Employee Payroll Tax Deferral
  • Repayment deadline for employee to pay back this ss tax deferral has been moved to Dec 31st 2021.
• Grants/Loans
  • The EIDL – Economic Injury disaster loan program.
    • These loan dollars may be available for people who do not qualify for the PPP loan.
    • $47 Billion allocated for assistance.
    • Grant and loan dollars forgivable based on spending.
    • Theaters, live venues, schools, colleges, childcare provides.
    • Contact the SBA 800-656-2955 or disastercustomerservice@sba.gov.
  • PPP Loans
    • $284 Billion allocated.
    • 1st loan- 1st set of rules apply.
    • 2nd loan – 2nd set of rules apply.
    • 300 and under employee count.
    • 25% drop in revenue for Q1, Q2, and or Q3 comparing 2020 to 2019.
    • Max Loan amount is $2 million.
• Tax credits
  • Employee Retention Credit
    • Extended through July 1st 2021.
    • Credit expands to $7,000 per quarter using 70% calculation on $10,000 wages.
    • New threshold is 500 employees total (note: not per location. If at least 50% shared ownership).
    • 20% decline in revenue of that quarter over same quarter in 2019.
    • No double dipping.
  • FFCRA- Families First Coronavirus Response Act
    • Paid Leave for Covid reasons extended through March 31st 2021.
    • Tax credits for qualified paid leave will apply.
    • This is now optional.
    • Continuation of same coverage. Total hours apply, there is no reset.
    • No tax credit for public sector.
    • If they choose to continue then the same rules from the original FFCRA will apply.