Quarter 4 COVID-19 Business Update — *FREE* Pre-Recorded Webinar
On Saturday, August 8, President Trump signed an executive order to help Americans get back on their feet and stimulate the economy. Part of this executive order will delay Federal payroll tax. The constitutionality of this order is expected to be challenged. The following summarizes the order:
To start, the executive order hopes to extend the federal boost of unemployment under the CARES act, also known as the Federal Pandemic.
Unemployment Compensation) to $400 per week down from $600 that was previously distributed. The President expects each state to pay 25% of this benefit.
Impose a Payroll Tax Holiday that will begin September 1 and go through the end of the year.
The holiday will be retroactive to August 1. Workers earning less than $100,000 per year will be eligible. Employers will be permitted to stop withholding Social Security and Medicare. Currently, Congressional action is required to cut taxes, however, the President can use his executive powers to delay collecting taxes – meaning they would have to be paid back at a later date. President Trump stated if elected he would forgive the payroll tax deferment and establish a permanent payroll tax cut.
Extend the federal eviction moratorium that expired on July 24th.
The CARES Act prevented landlords or housing authorities from filing eviction actions, charging nonpayment fees or penalties, or giving notice for tenants to vacate. This applies only to federally subsidized and federally backed housing.
Suspend student loan payments through the end of the year and maintain the zero-percent interest period for federal student loans.
The CARES act previously suspended some federal student loan payments with zero interest through September 30. Perkins Loans and Federal Family Education Loans not owned by the I.S. Department of Education and private student loans are not included in the forbearance.
This is, of course, preliminary information. If you are interested in how this Executive Order to Delay Federal Payroll Tax will affect your Arizona business, please feel free to reach out to us. We’d be happy to walk you through the details! See also our entire COVID-19 resource center.