123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Business >> View Article

New Federal Pandemic Benefits Available Via Executive Order

Profile Picture
By Author: Leon A. Elwell
Total Articles: 73
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

Congress continues to debate how to help navigate through the ongoing pandemic. In the meantime many benefits, including Federal Unemployment benefits, have expired. To help address this assistance gap, new Executive orders were signed by President Trump. Here is what you need to know:

Federal unemployment benefits

The additional $600 weekly Federal employment benefits expired in late July. The executive order makes an additional $25 billion available for extending Federal unemployment benefits through December 6 or until the funds run out.
(approximately $100,000 annual income). The amount is limited to $400 per week of which $100 must be funded by states.

Complications.Typically funding must be approved by Congress. It will be interesting to see if this executive order is challenged. In addition, this order requires 25% of the obligation to be funded by individual states. It might be difficult to get timely approvals or states to set up their systems to implement this program.

Payroll taxes

The executive order defers payroll taxes from July through December. While not spelled out in the executive order, this typically refers to Social Security and Medicare payments from both employees and employers. The deferral only applies to those with pre-tax income of $4,000 bi-weekly (approximately $100,000 annually). This would provide an additional 7.45% in paychecks and a 7.45% deferral of employer payments.

Complications.This is a deferral not forgiveness of the payment. If Congress does not approve forgiving the payments, all employees and employers will need to cough up these funds at a later date. Implementing this order is also complex for payroll companies. Some employee payroll taxes are deferred, while others are not. How do you handle employees with multiple jobs? What if an employer still wants to pay the tax on time versus deferring it?

Student loan repayments

The current student loan payment and interest relief expires in September. The current relief moves interest to 0% during the deferral period. The new Executive order extends payment relief until December.

Complications. The old relief only applies to select loans. It does not apply to private loans taken out to finance college. Nor, is it clear if the extending time-frame of the payment deferral will also provide interest relief.

Eviction notices

A new Executive Order takes lawful measure to prevent evictions and foreclosures resulting from financial hardships caused by COVID-19. This order extends this relief to match the time-period of the nationally declared disaster dates. The order only applies to programs related to and controlled to some degree by Federal programs. These include, but are not limited to, Fannie Mae and Freddie Mac loans, and any federally subsidized housing programs.

Complications. The Executive order directs The Secretary of Housing and Urban Development shall take action in conjunction with the Treasury department to implement the order.

One of the biggest questions is how much of these Executive orders is within the power of the Executive branch. Only time will tell.

For more financial tips and guidance, count on our team of financial professionals. We’re here to help you navigate these tough times. Reach out today and schedule time: https://www.bas-pc.com/appointment-center

Get More Info : Visit Here : https://www.bas-pc.com/

More About the Author

Business Accounting Systems, P.C., is a South Jersey Public Accounting Firm located in West Deptford, New Jersey that has been providing excellence in servicing the accounting, payroll, and tax needs of independently owned small businesses throughout the Tri-State area. For More Info : Visit Here : https://www.bas-pc.com/

Total Views: 59Word Count: 506See All articles From Author

Add Comment

Business Articles

1. Trust The Bestdoor Company With Your Sectional Door, Installation, And Service Needs
Author: The BestDoor Company

2. Introduction To Iso 17021 And Requirements And Objectives Of Lead Auditor Training
Author: Punyam Academy

3. Choosing The Very Best Psychic Mediums
Author: Erma Slagle

4. Take The Time To Laugh
Author: Dr.Winifred Bragg

5. Content Marketing Trends To Follow In 2021
Author: Xira Infotech

6. Commercial Rolling Steel Doors And Installation Services
Author: Overhead Door

7. Benefits Of Custom Archive Boxes For Your Products
Author: Sam Wilson

8. A Useful Guide On Hiring Professional Shop Fitters
Author: Dennis Youssef

9. Does Every Company Need A Website?
Author: itechscripts

10. How One Can Sterilize And Calibrate One Goldmann Applanation Tonometer
Author: ozahub

11. These Traits Are Tops In 12 Awg Solar Pv Multi Conductor Tray Cable
Author: Greg Anixter

12. 5 Useful Tips To Make Your Café Fitout Successful
Author: Dennis Youssef

13. Global Iot Smart Cities Market
Author: geeta

14. Global Medical Imaging Market
Author: geeta

15. Global Digital Panel Meter Market
Author: Rupali Dagade

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: