On Friday, March 27th President Trump signed the Coronavirus Aid, Relief and Economic Stimulus Act (CARES Act) which provides financial support to both individuals and businesses. There are a number of provisions included within the CARES Act and we have summarized the sections we believe are most applicable to our clients. Our News page includes additional posts regarding CARES Act changes to Individual Tax Provisions, Business Tax Provisions and Stimulus Loans Available.
Pandemic Unemployment Assistance
The CARES Act creates a new program modeled on Disaster Unemployment Assistance that would provide benefits to individuals who do not qualify for regular unemployment and are unable to work because of COVID-19. Pandemic Unemployment Assistance will cover self-employed individuals, part-time workers and those with limited work histories. Pandemic Unemployment Assistance will be state administered but fully federally funded. Details are not yet available on the California Employment Development Department website but we will provide updates as they become available.
Emergency Increase in Unemployment Compensation
This provision adds an additional $600 in Federal Pandemic Unemployment Compensation to every weekly unemployment benefit through July 31, 2020. The additional $600 benefit will be taxable to the individual like regular unemployment benefits.
We will continue to keep you updated with new developments as they become available. We remain fully committed to serving and supporting our clients during these challenging times.
*This article reflects tax law as of March 27, 2020. Some material may be affected by subsequent changes in the laws or in the interpretation of such laws.