Consolidated Appropriations Act, 2021 (CAA)

Important information, documents, and resources for Consolidated Appropriations Act, 2021 (CAA)

Consolidated Appropriations Act, 2021 (CAA)
 

This information is constantly changing and is up to date as of December 22, 2020. Please check back regularly for updated information 

The Law

Summary

Subject Line: Additional PPP and Covid-19 relief for employers

As the Consolidated Appropriations Act, 2021 (CAA) makes its way to the president for signature, let's take a peek at what it looks like so far so that you can prepare for taking advantage of those benefits that best suit your business.

Following are some of the noteworthy points:

PPP loans round 2: another round of PPP loans will be made available to first-time borrowers. In addition, qualifying businesses may receive a second loan for up to $2 million. To qualify for a second loan, the business must have fewer than 300 employees, using the first loan in full, and can show a decline of 25% in revenues in any quarter in 2020 compared to the same period in 2019.

PPP Expense Tax Deductions: there has lately been a lot of talk regarding the tax deductions for expenses qualified for PPP forgiveness. The law now clarifies that PPP forgiveness expenses will also count as a tax deduction. This is great news for small businesses who would otherwise be hit with unexpected taxes.

Employee Retention Credit expansion: the Employee Retention Credit has previously not been available to companies who received a PPP loan. The new law will allow PPP recipients to also take advantage of the Employee Retention Credit. Furthermore, the tax refund limit increases from $5,000 to a max of $14,000.

Emergency Paid Sick Leave: the paid sick leave provisions of the Family First Coronavirus Response act which would have expired on December 31, 2020, have been extended for an additional three months.

The above information is a non-inclusive summary of the law and is based on our current understanding. Stay tuned as we get more information on what ends up on the final bill and what modifications will be made in the payroll system to handle the new laws.

Important Documents

 

Archive

 
FEATURED BRANDS POWERED BY CHS

544 Park Ave.

Brooklyn, NY 11205  

Email: info@chspayroll.com  

Phone:  718-651-6637

  • LinkedIn
  • Facebook
  • Twitter
  • Instagram

© 2020 CHS Payroll LLC