2021 Stimulus Update

2021 Stimulus Update

Webinar: #1
Date: January 7, 2021

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.
Posted Jan 8, 2021
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