The CARES Act, passed last month by Congress, is the largest stimulus bill in history. The Act provides immediate support to individuals and small businesses. Even the IRS is extending certain tax deadlines for individuals and businesses. It seems that everyone who can is lending a hand.
How Does The CARES Act Impact Me?
Whenever Congress passes a major spending bill, immediately there are a lot of questions. Let’s take a look at how the CARES Act benefits you:
Individual Tax Deadline – The IRS has extended the individual tax deadline by 90 days. You now have until July 15, 2020 to file and pay your personal taxes. You can still request an extension of this new deadline until October 15, 2020
401K Loans – The CARES Act raises the limits of 401K loans from $50,000 to $100,000.
Payroll Taxes – The CARES Act provides employers with the opportunity to delay paying their portion of 2020 payroll taxes until 2021 and 2022
Small Business Relief – $350 billion dollars will be set aside to assist small businesses in staying afloat during COVID-19. Small businesses with less than 500 employees are eligible for up to 8 weeks of cash-flow support. Any monies granted that a business uses for rent, payroll or utilities will be forgiven from repayment.
A copy of the stimulus package can be read in full here.
How Does This Affect Paying Taxes?
There are a few things to keep in mind with the CARES Act:
Businesses with current filing due dates on May 15 or June 15 will not be granted a postponed deadline
Normal filing, payments and deposit due dates still apply to payroll and excise taxes
If you owe taxes on your 2019 return you must pay these by the extended date of July 15, 2020 to avoid interest and penalties
What we’re dealing with is unprecedented and the long term impact on both humanity and the economy will be far reaching and quite possibly very long term. Recovery will require hard work and perseverance from all of us to pull through.
PayWow is here to help understand how your payroll is impacted during this unfortunate time. Please don’t hesitate to contact our US-based support team anytime with your questions or concerns.