Recently, Congress was able to overcome months of stalemate and agree on a 900+ billion dollars COVID stimulus package which will be included with the year-end omnibus legislation to fund the federal government. After the CARES Act, the economic relief package is the second largest in our nation’s history. Among the items included in the package were extensions of unemployment insurance, direct stimulus payments for individuals, support for small businesses, and money for COVID testing and vaccinations.
The bill includes significant benefits including:
- Expenses covered by forgiven PPP funds will be deductible on 2020 tax filings;
- A second round of forgivable PPP funding will be available for businesses who can show a decline in revenue of 25% or more and employ 300 people or less;
- The bill also includes expedited forgiveness on PPP loans under $150,000;
- Group life insurance benefits are codified as covered payroll expenses under PPP program;
- An update to Section 7702 of the internal revenue code (enacted in 1984) that will help the industry provide consumers with better permanent life insurance products given the ultra-low interest rate environment;
- Extension of payroll tax repayment for employees who deferred payroll taxes to December 31, 2021
A link to the full text can be found here and a section-by-section summary here.
The content is developed from sources believed to be providing accurate information. The information in this material is intended solely for information and education, and is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.