Federal Action Including the Coronavirus Aid, Relief, and Economic Security Act

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The CARES Act is primarily intended to provide benefits and relief for small business owners (under 500 employees) and employees eligible for unemployment insurance benefits. Below are just some of the key provisions and benefits.

For a full text of the Act see https://www.congress.gov/116/bills/hr748/BILLS-116hr748enr.pdf (PDF).

For additional guidance see https://home.treasury.gov/policy-issues/cares.

Employer Retention Credit Employers whose operations are fully or partially suspended during the COVID-19 pandemic or whose quarterly receipts dropped by more than 50% as compared to the same quarter in the prior year, may receive a refundable payroll tax credit for 50% of wages (up to $10,000 per employee) paid during each calendar quarter during the COVID-19 pandemic.

Funding for Programs States that have or will implement certain workshare programs for employees, are eligible to receive additional funding. Under workshare programs, employers reduce the average hours of current employees, across the board, rather than conducting layoffs or furloughs. These employees then receive pro-rated unemployment benefits known as Short Term Compensation Benefits (STC). The federal government will reimburse states 100% of the STC paid under a state’s existing workshare program, through December 31, 2020.

California has a workshare program and it can be accessed at https://www.edd.ca.gov/unemployment/Work_Sharing_Program.htm.

SEE ALSO

• Other sections in this book

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