Phase Three Relief Legislation being Completed in Congress
March 22, 2020
Details of phase three of Congress's COVID-19 relief legislation are being made available and will be considered in the Senate over the weekend. Many expect the legislation will continue to be debated and passed next week. It is expected to be one of the most costly such efforts ever, reportedly topping over $1 trillion. As reported, some early details of the legislation include:
2020 Individual Recovery Rebates
Waives the 10% early withdrawal penalty for withdrawals up to $100,000 from qualified retirement accounts for corona virus related purposes
Delay of employer payroll tax – half due by December 31, 2021, half due by December 31, 2022
Temporarily increases the amount of business interest expense businesses are allowed to deduct on returns by increasing the reduction from 30% to 50% of the taxable income for 2019 and 2020
Technical corrections in the Tax Cuts and Jobs Act which will result in increased cash flow for some businesses.
208 billion in loans and guaranteed loans to at risk industries - commercial airlines (50 billion), air cargo carriers (8 billion), other eligible businesses (150 billion)
Small business loans for any company with less than 500 employees. The cap of that loan is either $10 million or the average of monthly payments.
Tennessee Chamber Report on Congressional Actions
Tennessee Department of Labor Issues FAQ for Employers
Tennessee Department of Labor has published a guidance FAQ to assist employers and employees with questions related to workplace attendance, emergency unemployment insurance provisions, and other questions DOL has received in the week of yesterday's executive order.
TN Chamber COVID-19 Business Resources