This past weekend, President Trump took executive action and signed four orders to assist with COVID relief efforts.
1. Unemployment Benefits
The President has issued an additional $400 supplemental weekly payment retroactively starting on August 1st. Trump has diverted $44 billion from FEMA’s Disaster Relief Fund to cover the unemployment program and that would last through December 6th or until the Disaster Relief Fund balance drops under $25 billion.
Remember, unemployment compensation is taxable for federal tax purposes. Be sure to include tax withholdings.
2. Renter and Homeowner Assistance
The CARES Act issued a 120-day temporary eviction moratorium on renters in federal housing assistance programs or those who live in a property with a federally backed mortgage.
He has directed his administration to identify available funds to “provide temporary financial assistance to renters and homeowners who, as a result of the financial hardships caused by COVID-19, are struggling to meet their monthly rental or mortgage obligations.”
3. Payroll Tax Holiday
Trump deferred the payroll tax from September 1, 2020 to December 31, 2020, for employees making $100,000 or less a year. Employees would need to repay the federal government when the tax holiday ends without further action.
4. Student Loan Relief
The executive action suspends federal student loan payments and sets interest rates to 0 percent through Dec. 31, 2020. The current student loan relief programs were to expire on Sept. 30.
Philip L. Liberatore, CPA remains committed to providing you with important information that pertains to your success.