Executive VP For US Chamber Of Commerce Talks Stimulus Checks And SBA Loans To Kentucky
Executive Vice President for the U.S. Chamber of Commerce Neil Bradley addressed Kentuckians concerns with the Coronavirus Aid, Relief, and Economic Security Act in a webinar held Wednesday by the Kentucky Chamber of Commerce. He said the U.S. Department of Treasury is already in the process of implementing direct deposit payments to individuals.
“If you're a taxpayer and you have incomes under $75,000, as an individual or under $150,000 as a couple, you will be receiving an automatic payment of $1,200 for individual, $2,400 for a joint return and $500 per child,” Bradley said.
He said 2019 tax returns will be used for stimulus check dispersal and if individuals have not turned in 2019 tax returns, 2018 returns will be used. If direct deposit instructions were completed on the last tax return, that is how individuals will be receiving their money. If you did not have direct deposit instructions turned in with the last tax return, Bradley suggests these individuals visit IRS.com for guidance.
Bradley explained unemployment is still a state-administered program and some state governments may be rolling out benefits slower than others.
“The expanded unemployment is rolling out slowly across the country. Even though there is a lot of federal money here and some new federal eligibility rules, it is still a state-administered program,” Bradley said. “Each state is in a different place in terms of where they are implementing this.”
An example of newly-implemented federal unemployment eligibility would be independent contractors, who are not normally eligible for unemployment. Bradley says self-employed and independent contractors can begin applying for the Paycheck Protection Program this Friday.
Businesses can borrow an amount that's equal to two and a half times their monthly average payroll. This includes the gross payroll amount paid to employees which will increase the amount employers can borrow and the amount that can be forgiven.
According to Bradley, the total loan amount eligible for forgiveness can be no more than 25% for expenses that are not payroll related.
“If you get a loan, immediately after you get that loan to maximize your loan forgiveness,
you need to begin paying your employees or bringing those employees back,” Bradley said. “If you don't bring them back, if you reduce your employee headcount, or you reduce employee wages by more than 25%, you lose some of that loan forgiveness. As long as you bring them back and maintain their employment through June 30, you're held harmless for purposes of the loan forgiveness.”
As of last week, employers with fewer than 500 employees are required to provide paid sick leave to employees when they are ill or quarantined due to exposure, or have to take care of a family member. Employers must pay employees on sick leave at the regular rate of pay.
This rate of pay can not exceed $511 a day if they are ill or quarantined. If the individual is taking care of a family member, the rate of pay can not exceed $200.
However, Bradley assured employers the federal government will reimburse them up to the maximum daily amount of what they pay their employees.