![]() The Tax Memorandum directs the Secretary of Treasury to defer the withholding, deposit, and payment of the employee portion of social security tax (but not Medicare tax) on wages or compensation paid during the period of September 1, 2020, through December 31, 2020, if the employee’s wages or compensation payable during any biweekly payroll period are generally less than $4,000, calculated on a pre-tax basis, or the equivalent amount during other payroll periods. State governments will be responsible for the remaining 25%, subject to an agreement between the federal government and the state with regards to the program and funding. In addition, the funding for this new benefit is different than the funding under the CARES Act because the federal government will only pay for 75% of the costs associated with this benefit. Second, the Memorandum requires the individual to certify that his or her lost wages are attributable to disruptions caused by COVID-19. First, the Memorandum requires that to be eligible, an individual must receive at least $100 per week in regular state unemployment compensation assistance (up from $1). The Disaster Relief Memorandum makes two significant changes in eligibility compared to the $600 supplemental benefit under CARES. The Disaster Relief Memorandum directs FEMA to provide benefits from the Department of Homeland Security’s Disaster Relief Fund and directs states to use their Coronavirus Relief Fund allocation to provide financial relief to unemployed Americans affected by COVID-19, principally through an up to a $400-per-week supplemental unemployment compensation benefit. Disaster Relief/Unemployment Insurance BenefitsĪs most employers and others are aware, the CARES Act provided a $600 per week federally funded unemployment compensation assistance to an eligible unemployed person, in addition to standard state unemployment benefits. ![]() The Executive Order (the “Housing Executive Order”) directs various Cabinet and Executive Agency heads to find means of limiting evictions and foreclosures.Īlthough none of the Executive Orders are currently operational, the constitutionality of these actions has been questioned, and legal challenges have been threatened and may be instituted, it is important for you to have a basic understanding of these actions. A third Memorandum was issued to the Secretary of Education (the “Education Memorandum”) and extends student loan payment deferment and reductions of student loan interest rates to zero until December 31, 2020. ![]() The second Memorandum was issued to the Secretary of Treasury (the “Tax Memorandum”) and temporarily defers the collection and payment of certain payroll taxes from compensation paid between Septemand December 31, 2020. One Memorandum was issued to the Secretary of Labor, the Secretary of Homeland Security, and the Administrator of the Federal Emergency Management Agency (“FEMA”) (the “Disaster Relief Memorandum”) and provides for supplemental unemployment payments to certain eligible claimants at up to $400 per week until the earlier of when the $25 billion allocated by the President is depleted or December 6, 2020. Seyfarth Synopsis: On August 8, 2020, President Trump issued an Executive Order and three Memoranda to his Cabinet and Executive Agency heads (collectively, the “Executive Orders”) that provide or extend COVID-19 relief to individuals and businesses. Visit our Beyond COVID-19 Resource Center.
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