Notes From the Senate

April 3-- Notes from Senator Jack Hill.

Things are happening so fast these days. Congress passed the aid package for individuals and businesses and the Governor implemented a "shelter in place" policy. This week, though, we are bringing info on the personal income and tax changes as we see them, dealing first with aid coming to individuals. A good accountant or tax advisor is always a safe place for your questions about your particular situation.

This column passes on information on the Federal Corona Virus Aid, Relief and Economic Security or CARES Act. This funding applies to both individuals and to businesses and is intended to replace income lost due to the virus or to help businesses survive during these times.

Last week, we gave you a number of web addresses and phone numbers to assist business in finding and securing government programs for small businesses (under 500 employees). This week, we are passing along information on the individual funding that is intended to help citizens get through this crisis.

CHECKS TO INDIVIDUALS

Every individual with an income under $75,000 for single filers, $112,500 for head-of-household and $150,000 for joint filers, will receive $1,200 per adult and $500 per child. This is based on the last income tax statement filed and could be based on this years if you go ahead and file. Each family member must have a Social Security number. Apparently, Social Security recipients not filing will not have to file a return in order to receive this check.

EXPANDED UNEMPLOYMENT BENEFITS

Adds more workers eligible and increases the benefit and includes self- employed workers, independent contractors and part- timers, those without previously qualifying work histories.

Raises the benefit by $600 per week and adds 13 additional weeks for a total of 39 weeks. Now there is no one week waiting period as in some states.

PAID SICK LEAVE AND FAMILY LEAVE

Companies with 500 or fewer employees are required to offer paid sick leave and family leave. These companies will be reimbursed for the paid leave through tax credits.

Employees are entitled to:

- Up to two weeks or 80 hours of paid sick leave at 2/3 their regular pay due to quarantining or COVID-19 symptoms. Maximum $511 per day.

- Up to 80 hours of paid sick leave at 2/3 regular pay if they cannot work for caring for a relative who is quarantined or having COVID-19 symptoms. Max $200 per day.

- Up to 10 additional weeks of paid expanded family leave at 2/3 regular rate if employed for 30 days and must care for a child out of school or without available childcare.

DEFAULTED STUDENT LOANS

Student loans are held in administrative forbearance or pause pay for 60 days from March 13, 2020 to September 30, 2020. Collection efforts are suspended on all federal student loans in default.

TAX RELIEF FOR EMPLOYER REPAYMENT OF STUDENT LOANS

If employers provide student loan repayment assistance to up $5,250 between March 27, 2020 and December 31, 2020 that assistance is not counted as income by the student. Limited to $5,250.

WITHDRAWALS FROM 401(k) ACCOUNTS

Holders can withdraw up to $100,000 from a workplace 401(k) balance.

MINIMUM WITHDRAWAL DISTRIBUTIONS

Normally retirees after turning 70.5 or after 72 if they turn 70.5 in 2020 is suspended so that retirees don't have to sell losing investments.

EXTENDED TAX DEADLINES

Deadline to file federal and state taxes has been extended to July 15, 2020.

SIX MONTH FORBEARANCE ON LOANS- FHA, VA, 184/184A, FANNIE MAE OR FREDDIE MAC

THERE IS A MORATORIUM ON EVICTIONS AND FORECLOSURES ON THE ABOVE LOANS

CHARITABLE CONTRIBUTIONS ARE DEDUCTIBLE WITHOUT ITEMIZING UP TO $300

SMALL BUSINESS ASSISTANCE- EXPANDED LOANS

- SBA PAYCHECK PROTECTION UP TO 250% OF AVERAGE MONTHLY EXPENDITURES AND SALARY COSTS TO MAX OF $10 MILLION. PORTION MAY BE FORGIVEN

- EMPLOYEE RETENTION TAX CREDITS- REFUNDABLE 50% TAX CREDIT ON WAGES UP TO $10,000 PER EMPLOYEE IF GROSS DECLINED BY MORE THAN 50% FROM MARCH 1, 2020 TO DECEMBER 31, 2020

- DELAYED PAYROLL TAX PAYMENTS- BOTH COMPANIES AND SELF- EMPLOYED CAN DELAY PAYROLL TAX PAYMENTS AND PAY OVER NEXT TWO YEARS.

FOURTH DISTRICT SCHOOL SYSTEMS FEEDING CHILDREN

Bulloch County Schools
- For information on free meals, visit here
Candler County Schools
- Food delivery site info available here
Effingham County School District
- School buses will deliver meals to designated locations; visit here for more information
Emanuel County School System
- School buses will deliver meals to designated locations; visit here for more information
Evans County School System
- Visit here for "Feeding Site Fast Facts"
Tattnall County Schools