{"id":125,"date":"2020-05-12T17:04:04","date_gmt":"2020-05-12T17:04:04","guid":{"rendered":"http:\/\/pjsservicesgroup.com\/blog\/?p=125"},"modified":"2020-05-12T17:04:06","modified_gmt":"2020-05-12T17:04:06","slug":"the-economic-security-act-2020-and-you","status":"publish","type":"post","link":"http:\/\/pjsservicesgroup.com\/blog\/the-economic-security-act-2020-and-you\/","title":{"rendered":"The Economic Security Act 2020 and You"},"content":{"rendered":"\n<p>In this very difficult time, I know\nyou are concerned about the financial health of your family, friends, and\nemployees. Below is summary information for the Economic Security Act of 2020\nand some important lessons learned. Please visit our website blog, <a href=\"http:\/\/pjsservicesgroup.com\/blog\/\">http:\/\/pjsservicesgroup.com\/blog\/<\/a>, for more articles and information. <\/p>\n\n\n\n<p><strong>The Coronavirus Aid, Relief, and\nEconomic Security (CARES) Act of 2020 &amp; Other Related COVID-19 Government\nActions<\/strong><\/p>\n\n\n\n<p><em>Key Takeaways<\/em><\/p>\n\n\n\n<p><strong>Individuals &amp; Families<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Recovery\nRebate Check$1200 per person$500 per child under 17Expected payouts to occur in late April and\/or\nearly May. Tax\nCredit for 2020 Phase\nout at $150k married filing joint, $112,500 filing head of household, $75K filing\nsingle, phase out does not affect per child rebateBased\non most recent tax return (2018 or 2019)SS\nwill get theirs with SS checksOthers\nDirect Deposit where they received their 2018\/19 refundOtherwise\nlast known address on fileIRS Form 8822 to give IRS new address<\/strong><\/li><\/ul>\n\n\n\n<table class=\"wp-block-table\"><tbody><tr><td>\n  <strong>Filing Status<\/strong>\n  <\/td><td>\n  <strong>Full Rebate<\/strong>\n  <\/td><td>\n  <strong>Partial Rebate<\/strong>\n  <\/td><td>\n  <strong>No\n  Rebate<\/strong>\n  <\/td><\/tr><tr><td>\n  <strong>Single<\/strong><strong><\/strong>\n  <\/td><td>\n  &lt; $75,000\n  <\/td><td>\n  $75,001 &#8211; $99,000\n  <\/td><td>\n  &gt; $99,000\n  <\/td><\/tr><tr><td>\n  <strong>Married\n  Filing Jointly<\/strong><strong><\/strong>\n  <\/td><td>\n  &lt; $150,000\n  <\/td><td>\n  $150,001 &#8211; $198,000\n  <\/td><td>\n  &gt; $198,000\n  <\/td><\/tr><tr><td>\n  <strong>Head\n  of Household<\/strong><strong><\/strong>\n  <\/td><td>\n  &lt; $112,500\n  <\/td><td>\n  $ 112,501 &#8211; $146,500\n  <\/td><td>\n  &gt; $146,500\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<p><strong><em>Lessons Learned:<\/em><\/strong><strong><em> The fastest and easiest way to make\nsure you receive this check is the login to the IRS website and provide them\nyour banking information (especially if you are a non-filer). You can also\ncheck the status of this check. However, your check status will not show any\ninformation until your deposit is pending or your check has been mailed. My\nclients have found that soon after they provided their direct deposit\ninformation with the IRS they received their stimulus check. To confirm your\nbanking information, go to <\/em><\/strong><a href=\"https:\/\/www.irs.gov\/coronavirus\/get-my-payment\">https:\/\/www.irs.gov\/coronavirus\/get-my-payment<\/a>.<strong><em><\/em><\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Unemployment\nCompensation<\/strong><\/li><li>Temporary assistance for unemployed,\nself-employed, and independent contractors for up to four months at $600 per week.\n<\/li><li>Pandemic Unemployment assistance for\nself-employed (by state) if you don\u2019t qualify for state funded unemployment.<\/li><li>Individuals with reduced hours may be eligible\nfor pro-rated unemployment benefits. <\/li><\/ul>\n\n\n\n<p><strong><em>Lessons Learned:<\/em><\/strong><strong><em> Employees that were fired or laid off\nand those that are self-employed are both eligible for unemployment. The\nself-employed applicant may get denied from the Texas Workforce. However, if\nyou are denied you need to make sure you send them information that you are\napplying under the Stimulus Cares Act and provide them details you were\nself-employed (typically your tax information).<\/em><\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Required\nMinimum Distributions (RMDs)<\/strong><\/li><\/ul>\n\n\n\n<p>RMDs are waived for calendar\nyear 2020. Applies to first RMD for 2019 (April 1<sup>st<\/sup> deadline) and\nannual RMDs (December 31<sup>st<\/sup> deadline).<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Retirement\nPlan Distributions<\/strong><\/li><\/ul>\n\n\n\n<p>Coronavirus related\ndistributions<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>10% Penalty Waived<\/li><li>Distributions of up $100,000<\/li><li>100% of invested balance may be used<\/li><li>Taxable Income can be reported over 3 Years <\/li><li>Funds can be replaced within 3 Years without\naffecting annual contribution amounts.<\/li><li>Must be made in 2020<\/li><li>Must be because of:<ul><li>Diagnosed\nwith Covid-19<\/li><\/ul><ul><li>Spouse\nor dependent diagnosed with Covid-19<\/li><\/ul><ul><li>Experiencing\nadverse financial consequences because of disease<\/li><\/ul><ul><li>Owned\na business that closed or has reduced hours<\/li><\/ul><ul><li>Cannot\nfind childcare<\/li><\/ul><\/li><li>Plan participant self certifies they are\nqualified<\/li><\/ul>\n\n\n\n<p><strong><em>Lessons Learned:<\/em><\/strong><strong><em> This is great for those that would\nnormally take RMD\u2019s to delay their withdrawal during a period when their\nretirement account values may have been severely hit in value by the market\ndownturn.&nbsp; Taking early withdrawals from\nyour retirement plan can go wrong in the following ways; if you do not replace\nthe money you will have an increase in your taxable income, you may be\nwithdrawing assets with their value is low and repurchasing when the value is\nhigh, thus negatively impacting the long-term value of your retirement assets. <\/em><\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Tax\nDeadlines &amp; Payments <\/strong><\/li><\/ul>\n\n\n\n<p>No action required.\nAutomatically extended for all individual taxpayers and trusts. <\/p>\n\n\n\n<table class=\"wp-block-table\"><tbody><tr><td>\n  <strong>Type <\/strong>\n  <\/td><td>\n  <strong>Deadline<\/strong>\n  <\/td><\/tr><tr><td>\n  <strong>2019\n  Tax Filing<\/strong><strong><\/strong>\n  <\/td><td>\n  July 15<sup>th<\/sup>, 2020\n  <\/td><\/tr><tr><td>\n  <strong>2019\n  Tax Payment<\/strong><strong><\/strong>\n  <\/td><td>\n  July 15<sup>th<\/sup>, 2020\n  <\/td><\/tr><tr><td>\n  <strong>1<sup>st<\/sup>\n  Quarter &#8211; 2020 Estimated Tax Payment <\/strong><strong><\/strong>\n  <\/td><td>\n  July 15<sup>th<\/sup>, 2020\n  <\/td><\/tr><tr><td>\n  <strong>2<sup>nd<\/sup>\n  Quarter &#8211; 2020 Estimated Tax Payment<\/strong><strong><\/strong>\n  <\/td><td>\n  June 15<sup>th<\/sup>, 2020<em>* <\/em>\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *<em>Remains\nunchanged at this time.<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>IRA\n&amp; HSA Contributions<\/strong><\/li><\/ul>\n\n\n\n<p>2019 contributions\nfor retirement accounts and health savings accounts (HSAs) can be made up to\nJuly 15<sup>th<\/sup>, 2020. <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Student\nLoan Relief<\/strong><\/li><\/ul>\n\n\n\n<p>Payments and interest for federally held loans will be\nsuspended until September 30<sup>th<\/sup>, 2020.<\/p>\n\n\n\n<p>Collection on federal student loan debt is suspended.<\/p>\n\n\n\n<p><strong><em>Lessons Learned:<\/em><\/strong><strong><em> You should confirm that your interest\nhas been suspended. If you have the financial flexibility this is a good time\nto pay down the principal. Even though the interest has been suspended you can\nstill make payments toward the principal amount. <\/em><\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>HealthCare<\/strong><ul><li>FSA,\nHSA, and MSA accounts can now be used to purchase Over-the-Counter drugs and\nmedicines including male and feminine products.<\/li><\/ul><ul><li>Medicare\nbeneficiaries receive at no-cost COVID-19 vaccine (when available)<\/li><\/ul><ul><li>Telehealth\nservices temporarily covered by HSA-eligible HDHP<\/li><\/ul><\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Mortgages\nand Other Debts<\/strong><ul><li>Fannie\nMae and Freddie Mac have suspended foreclosures and evictions for 60 days<\/li><\/ul><ul><li>FHA\nimposed 60-day foreclosure and eviction moratorium for single family homeowners\nand FHA insured mortgages<\/li><\/ul><ul><li>Federal\nreserve cut interest rates, which helps homeowners looking to refinance and\nreduces rate on other debt, such as credit cards<\/li><\/ul><\/li><\/ul>\n\n\n\n<p><strong><em>Lessons Learned:<\/em><\/strong><strong><em> You must call your mortgage company,\nor any other companies that you may be indebted. Most have specific lines that\nwill work with you to suspend your payments. The suspension\/delays may cost you\nmore in interest over the long term. <\/em><\/strong><\/p>\n\n\n\n<p><strong>Small Businesses<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Family\nLeave<\/strong><ul><li>Requires certain employers to provide employees\nwith paid sick leave<\/li><\/ul><ul><li>Requires up to two weeks<\/li><\/ul><ul><li>May be covered up to an additional 10 weeks<\/li><\/ul><ul><li>Small businesses with fewer than 50 employees\nmay qualify for an exemption<\/li><\/ul><\/li><\/ul>\n\n\n\n<p><a href=\"https:\/\/www.dol.gov\/agencies\/whd\/fmla\/pandemic\">https:\/\/www.dol.gov\/agencies\/whd\/fmla\/pandemic<\/a><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Loans<\/strong><ul><li><strong>Paycheck\nProtection Program<\/strong><\/li><\/ul><\/li><\/ul>\n\n\n\n<p><a href=\"https:\/\/www.sba.gov\/funding-programs\/loans\/paycheck-protection-program-ppp\">https:\/\/www.sba.gov\/funding-programs\/loans\/paycheck-protection-program-ppp<\/a><\/p>\n\n\n\n<p>Forgivable portion of the loan equals 100% of amounts spent\non the following items during the 8-week period following the issuance of the\nloan:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Payroll, excluding prorated amounts for\nindividuals with compensation greater than $100,000<\/li><li>Rent pursuant to a lease in force before Feb 15,\n2020.<\/li><li>Electricity, gas, water, transportation, phone,\ninternet for services in force prior to Feb 15,2020<\/li><li>Group health insurance premiums and other\nhealthcare costs<\/li><\/ul>\n\n\n\n<p>*there are\nrequirements post the 8 weeks in order to get the loan forgiven. Otherwise, it\nwill convert to a low interest loan at a rate no greater than 4% with options\nto defer payments 6 \u2013 12 months. Specific provisions should be discussed with\nthe funding source.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Economic\nInjury Disaster Loans<\/strong><\/li><\/ul>\n\n\n\n<p><a href=\"https:\/\/www.sba.gov\/funding-programs\/disaster-assistance\">https:\/\/www.sba.gov\/funding-programs\/disaster-assistance<\/a><\/p>\n\n\n\n<p>Loan up to $2 million, 3.75% interest rate, first payment\ndelayed 1 year from date of origination. <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Not more than 500 employees<\/li><li>Sole prop and ESOPs eligible<\/li><li>Must have suffered economic injury<\/li><li>Potential for $10k emergency cash grant<\/li><li>Waiver of no-ability-to-get-credit elsewhere\nrule<\/li><\/ul>\n\n\n\n<p><strong><em>Lessons Learned:<\/em><\/strong><strong><em>&nbsp;\nThese loans started off badly for the small business owner. The initial\nexecution problems have been improved and more funds are getting to small\nbusinesses. If you are looking for funding from the PPP loan the key success\nfactor is the bank you choose to work with for funding. My clients have found\nthat the regional banks have been much more responsive (timely) that the larger\nbanks. The PPP loan can be forgiven, which is great. However, if for some reason,\nyou cannot meet the hurdles to be forgiven from the PPP Loan, both loans still\nthe cheapest money you will ever get for your business. <\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In this very difficult time, I know you are concerned about the financial health of your family, friends, and employees. Below is summary information for the Economic Security Act of 2020 and some important lessons learned. Please visit our website blog, http:\/\/pjsservicesgroup.com\/blog\/, for more articles and information. The Coronavirus Aid, Relief, and Economic Security (CARES) [&#038;hellip<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-125","post","type-post","status-publish","format-standard","hentry","category-general"],"aioseo_notices":[],"_links":{"self":[{"href":"http:\/\/pjsservicesgroup.com\/blog\/wp-json\/wp\/v2\/posts\/125","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/pjsservicesgroup.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/pjsservicesgroup.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/pjsservicesgroup.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/pjsservicesgroup.com\/blog\/wp-json\/wp\/v2\/comments?post=125"}],"version-history":[{"count":1,"href":"http:\/\/pjsservicesgroup.com\/blog\/wp-json\/wp\/v2\/posts\/125\/revisions"}],"predecessor-version":[{"id":126,"href":"http:\/\/pjsservicesgroup.com\/blog\/wp-json\/wp\/v2\/posts\/125\/revisions\/126"}],"wp:attachment":[{"href":"http:\/\/pjsservicesgroup.com\/blog\/wp-json\/wp\/v2\/media?parent=125"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/pjsservicesgroup.com\/blog\/wp-json\/wp\/v2\/categories?post=125"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/pjsservicesgroup.com\/blog\/wp-json\/wp\/v2\/tags?post=125"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}