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Congress Passes CARES Act, Includes Assistance to Small Businesses Chiropractic Clinics Could Benefit from Historic Legislation Today, the United States Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to provide, among other things, financial assistance to small businesses such as chiropractic clinics. The Act, which includes more than $2 trillion in assistance, was sent to President Trump, who signed it into law today. While there are many items included in the Act, below are brief summaries of provisions that may be most relevant to chiropractors in Texas. Paycheck Protection Program Authorizes $350 billion in forgivable small business loans. Provides loans for up to 250% of a business’ average monthly payroll (up to $10 million) that are intended to cover eight weeks of costs. Loans can be forgivable up to the amount spent on covered expenses during the eight weeks following the loan’s origination. Covered expenses include items like payroll (does not include compensation over $100,000 per year), mortgage interest, rent, and utilities expenses. The amount of the loan that is forgivable will be proportionally reduced if there is a reduction in employment by the business. Unforgiven portions of loans are subject to a maximum 4% interest rate. Small businesses with less than 500 employees and non-profits with less than 500 employees are eligible for the program. The program is available to eligible businesses until June 30, 2020. Federal Student Loan Relief Automatic student loan forbearance for six months on federal student loan During the forbearance, interest will not accrue and non-payment will not impact credit scores. Borrowers may elect to make payments towards the principal of their federal student loans during the forbearance. Payroll Tax Deferment Employers may defer payment of the employer’s portion of payroll taxes over the next two years (50% due at the end of 2021 and 50% due at the end of 2022). Employee Retention Tax Credit Provides a 50% refundable tax credit for up to $10,000 in wages per employee if the business was forced to fully or partially close/suspend due to a COVID-19 shutdown order or if the business experienced a 50% decline in gross receipts when compared to the same quarter of the prior year. Direct Cash Payments Authorizes a direct payment of up to $1,200 for individual Americans making less than $75,000 and $2,400 for American couples making less than $150,000 (based on 2019 tax returns), plus $500 per child. After the $75,000 and $150,000 thresholds, the amount tapers off with no direct cash payment to those with incomes above $99,000 for individuals and $198,000 for couples (again, based on 2019 tax returns). Treasury Secretary Mnuchin has said he expects these payments to go out within three weeks. Increased Unemployment Benefits Adds an extra 13 weeks to the maximum 26-week period of eligibility for unemployment benefits. Increases unemployment benefit payments by $600 a week for up to four months. Expands those who are eligible for unemployment benefits to include furloughed and self-employed workers. For more information on the provisions of the CARES Act, please visit https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources and https://www.uschamber.com/co/start/strategy/cares-act-small-business-guide. Disclaimer: The Texas Chiropractic Association (TCA) provides the above for informational purposes only and it should not be considered as legal or tax advice. TCA encourages you to consult with an attorney and/or a tax/financial advisor about how the CARES Act applies to your unique situation. For more information on Coronavirus-19 crisis, TCA encourages you to check out our COVID-19 resource page on the TCA website.
Congress Passes CARES Act, Includes Assistance to Small Businesses
Chiropractic Clinics Could Benefit from Historic Legislation
Today, the United States Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to provide, among other things, financial assistance to small businesses such as chiropractic clinics. The Act, which includes more than $2 trillion in assistance, was sent to President Trump, who signed it into law today.
While there are many items included in the Act, below are brief summaries of provisions that may be most relevant to chiropractors in Texas.
Paycheck Protection Program
Federal Student Loan Relief
Payroll Tax Deferment
Employee Retention Tax Credit
Direct Cash Payments
Increased Unemployment Benefits
For more information on the provisions of the CARES Act, please visit
https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources and https://www.uschamber.com/co/start/strategy/cares-act-small-business-guide.
Disclaimer: The Texas Chiropractic Association (TCA) provides the above for informational purposes only and it should not be considered as legal or tax advice. TCA encourages you to consult with an attorney and/or a tax/financial advisor about how the CARES Act applies to your unique situation.
For more information on Coronavirus-19 crisis, TCA encourages you to check out our
COVID-19 resource page on the TCA website.