Summary of Key Components of the CARES Act for Employees and Employers

CARES Act Highlights

Unemployment Compensation Benefits

  • Standard unemployment amount increased by $600 per week, and the benefit period is extended to 39 weeks (from 26 weeks).
  • Benefit will be available at week one.
  • Benefit has been extended to gig economy workers and self-employed individuals as well as individuals who were scheduled to start a new job but could not.

Stimulus Package

  • Based on latest tax return, individual taxpayers with an AGI of $75,000 ($150,000 MFJ, $112,500 HOH) or less will be issued a stimulus check up to $1,200 per individual taxpayer.
  • Additional funds ($500) provided for each dependent child (under age 17) claimed by taxpayer.

Coronavirus-Related Distributions & Retirement Plan Loans*

  • Individuals who have been impacted by the coronavirus may be able to make distributions of up to $100,000 from IRA’s and/or employer-sponsored retirement plans without mandatory tax withholding or a 10% early withdrawal penalty. Recipients may repay distributions and/or spread income tax over a 3-year period.
  • Retirement plan participants may be able to borrow their full vested balance, not to exceed $100,000, from their qualified retirement plan. Payments may be deferred for up to 12 months.

    * Please check with your specific retirement plan administrator or your company’s COVID-19 resources page to determine eligibility for these distributions or loans.

Tax Deadline Extended to July 15th, 2020

  • Taxpayers have until July 15th, 2020 to file their 2019 tax return, pay any taxes due, and make prior-year contributions to an HSA and/or IRA.

Student Loan Payments Suspended until Sept. 30th, 2020

  • Required payments on Federal student loans are suspended until September 30th, 2020. No interest will accrue, and voluntary payments will be accepted.

Mortgage Assistance

  • Borrowers with federally backed mortgage loans under Fannie Mae and Freddie Mac can request forbearance on their payments for up to 12 months.

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