For Residents

Federal Government

CARES ACT (FEDERAL STIMULUS PROGRAM)

OVERVIEW

We hope you and your loved ones are staying safe. Your Irvine Company team wanted to provide you with information about new federal resources that may be helpful at this time. ​ On March 27, 2020, Congress passed the CARES Act to provide substantial assistance to workers, families and individuals.​ ​ Please see below for an abbreviated summary or click here​ for the full detail.

DIRECT PAYMENTS

• All U.S. residents with adjusted gross income up to $75,000 ($150,000 married), who are not a dependent of another taxpayer and have a work-eligible social security number, are eligible for a $1,200 ($2,400 married) rebate and an additional $500 per child
• Eligibility will use a taxpayer’s 2019 tax return if filed, or in the alternative their 2018 return and include those with no income or on SSI
• For incomes above $75,000, $5.00 will be deducted for every $100 above $75,000. ​ Individuals above $99,000 will not be eligible
• Eligibility will be based on 2019 tax returns and include those with no income or on SSI. The federal government will send checks automatically in April, either by check or direct deposit

ENHANCED UNEMPLOYMENT BENEFITS

• More Californians than have previously been eligible can now apply for an enhanced state unemployment benefit program here
• An additional $600 per week for four months
• An additional 13 weeks of unemployment benefits through Dec 31, 2020 to help those who remain unemployed
• Expanded to include self-employed, independent contractors, those with limited work history, furloughed workers, and “gig economy” workers (e.g. Uber, Lyft, etc.) to Dec 31, 2020

ADDITIONAL DETAILS (not inclusive of all relief measures)

Keeping American Workers Paid and Employed Act

Paycheck Protection Program

• $349 billion for small business loans; for businesses < 500 employees and sole-proprietors, independent contractors and other self-employed
• Borrowers shall be eligible for loan forgiveness equal to the amount spent by the borrower during an 8-week period after the origination date of the loan on payroll costs, interest payment on any mortgage incurred prior to Feb 15, 2020, payment of rent on any lease in force prior to Feb 15, 2020, and payment on any utility for which service began before Feb 15, 2020
• Loans equal to lesser of 2.5 months of payroll or $10M to maintain payroll, lease, and utility payments; Loan period Feb 20 to Jun 30, 2020; Max. interest rate of 4%
• Eligibility based on operational status as of Feb 15, 2020 vs. repayment ability
• Participating lenders (noted on SBA site) can begin processing loans beginning Fri, April 3, 2020 (for small businesses and sole proprietorships) and April 10, 2020 for Independent contractors and self-employed individuals
• For participating SBA lenders and application process: US Treasury CARES Update for Small Businesses (April 2, 2020)

Expanded Eligibility of Economic Injury Disaster Loan (EIDL)

• Expanded for individual operating as sole proprietor or independent contractor for Jan 31 to Dec 31, 2020
• Emergency Grant of $10,000 advance payment to eligible EIDL applicant; repayment not required if loan denied

Business Provisions

Refundable payroll tax credit

• For or 50% of wages paid by employers with credit up to $10,000 in wages paid / employee with max of $5,000
• Applies to companies affected by shutdowns or 50% reduction in revenues from same calendar quarter in the prior year

Deferred Employer Payroll Tax Over Two Years

• Includes Self Employed Individuals
• Defer payment of the 6.2% employer-side Social Security payroll tax, effective for wages paid between date of enactment and Dec 31, 2020
• Payment ultimately due in equal parts on Dec 31, 2021 and Dec 31, 2022

Net Operating Loss (NOL) Carryback Rules Reinstated and Expanded

• NOLs from tax years 2018, 2019, and 2020 can be carried back 5 years to claim refunds from taxable years
• Additional modifications on loss limitations, recovery of alternative minimum tax credits, interest expenses and others

General Labor Related Provisions

• Limitations on employer paid leave and sick leave
• Provides employee laid off by an employer March 1, 2020 or later to have access to paid family and medical leave in certain instances if rehired by employer
• Employers to receive advance tax credit from Treasury

Foreclosure Moratorium and Consumer Right to Forbearance

• Prohibits foreclosures on all federally-backed mortgage loans for a 60-day period beginning Mar 18, 2020
• Provides up to 180 days of forbearance for borrowers of a federally-backed mortgage loan

Education Provisions

• Defer student loan payments, principal, and interest for 6 months through Sept. 30, 2020 without penalty for all federally owned loans
• US Department of Education Coronavirus and Forbearance Info for Students, Borrowers, and Parents

Emergency Relief and Taxpayers Protections

• $500B Emergency Treasury Exchange Stabilization Fund to provide loans, loan guarantees, and other investments
• For direct lending, borrowers must maintain employment levels (no less than 90%) as of Mar 24, 2020 until Sept 30, 2020
• Special facility targeted at nonprofits and businesses between 500 and 10,000 employees subject to criteria to retain no less than 90% of workforce with full compensation and benefits through Sept 30, 2020

California Employment Development Department (EDD)

Overview of All EDD Programs

• https://edd.ca.gov/about_edd/pdf/Assistance-Programs-for-Workers-During-COVID-19.pdf

DISABILITY INSURANCE

• For sick or quarantined; Request a claim for short-term benefit payments
• Benefit amounts are approx. 60-70% of wages (depending on income) and range from $50-$1,300 a week
• How to File a Disability Insurance Claim in SDI Online
• Elective Coverage for Self-Employed/Independent Contractors​ - To be eligible, either you or an employer had to make contributions in the past 5 to 18 months

PAID FAMILY LEAVE

• For caregivers; Request for a claim for up to six weeks of benefit payments
• Benefit amounts are approx. 60-70% (depending on income) and range from $50-$1,300 a week
• How to File a Paid Family Leave Claim in SDI Online

UNEMPLOYMENT INSURANCE (UI) CLAIM

• For school closures or reduced hours; UI provides partial wage replacement benefit payments to workers who lose their job or have their hours reduced, through no fault of their own
• File an Unemployment Insurance Claim

PANDEMIC UNEMPLOYMENT INSURANCE (PUA)

• PUA provides assistance for unemployed or partially unemployed individuals who are not eligible for regular unemployment insurance and who are unable or unavailable to work due to COVID-19 related circumstances
• https://www.labor.ca.gov/pandemic-unemployment-assistance-pua-program/?fbclid=IwAR2lwbNxn-OsNQ_IPalRrmbD_yxR515WJdHonAXIdXMBhdnpYO1wizXtzvo

OnwardCA.org

• Resource for people who have lost their jobs due to pandemic
• www.OnwardCA.org