Recovery Rebate Checks On The Way – President Donald Trump signed into law Economic Relief Plan (CARES Act) for Individuals and Businesses

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On Friday, the Coronavirus Aid, Relief and Economic Security (CARES) Act passed the House of Representatives by a voice vote. The bill was later signed by President Trump into law. The Act builds upon earlier versions of the CARES Act and is intended to be the third round of federal government support to provide economic relief amid the coronavirus outbreak,

In this most well-known part of the CARES Act, Recovery Rebate stimulus checks or direct cash payments will be made to taxpayers in the coming weeks. Individuals can expect a check of$1,200, or $2,400 for married couples filing jointly, along with $500 for each qualifying dependent child. The rebate phases out at $75,000 for singles, $112,500 for heads of household, and$150,000 for joint taxpayers at 5 percent per dollar of qualified income. 2019 or 2018 tax returns will be used to calculate the rebate advanced to taxpayers.

The Families First Coronavirus Response Act is a new law passed in late March that offers COVID-19 assistance for both employees and employers. This new law provides businesses with fewer than 500 employees the funds to provide employees with paid leave, either for the employee’s own health needs or to care for family members.

Here are the details of the new law’s benefits:

*Paid Sick Leave for Workers: The new law provides employees of eligible employers two weeks (up to 80 hours) of paid sick leave at 100% of the employee’s pay where the employee can’t work because the employee is quarantined and/or experiencing COVID-19 symptoms and seeking a medical diagnosis.

*Other Paid Leave for Workers: Employees can receive two weeks (up to 80 hours) of leave at two-thirds the employee’s pay if they need to care for someone in the following situations: The need to care for an individual subject to quarantine, to care for a child whose school is closed or childcare provider is unavailable for reasons related to COVID-19.

*Extended Leave: In some instances, an employee may receive up to an additional ten weeks of expanded paid family and medical leave at two-thirds the employee’s pay.

*Companies will get paid back: Businesses who pay employees the mandatory sick and childcare leave according to the new law will get completely reimbursed through a payroll tax credit.

What it means for you

*Employees can take the necessary time to recover from being infected with COVID-19, or to care for a loved one, without fear of losing their job or salary.

*Employers can help their employees financially while navigating COVID-19 related shutdowns.

For IRS’s FAQ, visit:

Stay safe and healthy as will get through this together!

If you have any questions, please contact me at 704-659-3109 / Yorda Kidane, EA, CTC, NTPI Fellow® at Digital Tax Advisory, LLC

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