Last week, Congress passed, and President Trump signed into law, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which is intended to mitigate the impact of the nationwide economic shutdown.
The provisions that are pertinent to ATA members are summarized below for your information. As with all such legislation, some of the implementation details must still be worked out by the relevant agencies.
The CARES Act is 880 pages long and contains many more provisions than can be covered here. The focus below is on the provisions that are most likely to affect ATA members, both individual and corporate.
This overview is for information only and does not constitute business, financial, or legal advice. You should consult with an accountant, financial advisor, or the appropriate federal or state authority on your eligibility for any of these relief measures before making concrete decisions.
But don’t delay too long. It is not inconceivable that demand for some of these funds, such as SBA loans, may be rapid and strong.
Unemployment insurance: Beneficiaries will receive an additional $600 per week for up to four months. Benefits are extended to self-employed workers and independent contractors.
Recovery rebate: Provides a $1,200 refundable tax credit for individuals ($2,400 for joint filers), plus $500 per child. The rebate is not taxable income as it is a credit against tax liability and is refundable for taxpayers with no tax liability.
Charitable deductions: Creates a $300 “above the line” deduction for cash contributions to certain charities for taxpayers using the standard deduction. For itemizers, contributions may be temporarily deducted up to 100% of adjusted gross income, with any excess carried over to the next five years.
IRA withdrawals: Waves the 10% early withdrawal penalty on certain retirement account distributions for taxpayers facing virus-related challenges.
Student loans: Payments and interest on all federal loans held by the Department of Education are suspended until September 30, 2020. Allows an employer to pay up to $5,250 in 2020 on an employee’s student loan debt, with the payments being tax-free to the employee.
Delayed payment of employer payroll tax and self-employment tax:
Small business loans (paycheck protection loans) for certain small businesses, including self-employed individuals during the period from February 15 to June 30, 2020.
Changes to net operating loss rules: Temporarily reverses the changes made by the TCJA on loss carrybacks and carryforwards.
Emergency Economic Injury Disaster Loans (EIDL) and grants of up to $10,000 for small businesses, nonprofits, independent contractors, and self-employed individuals.
Employee retention credit: Creates a one-year credit against the employer’s 6.2% share of Social Security payroll taxes for businesses that are forced to suspend or close operations due to the pandemic but continue to pay their employees during the shutdown.
Businesses are eligible if:
The Coronavirus Aid, Relief, and Economic Security Act, or the ‘CARES Act,' provides emergency assistance and health care response for individuals, families, and businesses affected by the 2020 coronavirus pandemic. Click to read the full text.
COVID-19 has disrupted the translation and interpreting marketplace in ways we could not have imagined three weeks ago. This is going to be a real challenge. As an ATA member, you don't have to go it alone. Please do not hesitate to let your association know how it can support you in your professional life.
ATA staff are available 9 to 5 EDT! Call us at +1-703-683-6100, extension 3001, or email ata@atanet.org. Need to get in touch with someone about membership? Send an email to Trish Boward at membership@atanet.org.