Giving the American Worker and Family Support They Need
Workers, families, and small businesses are already getting hit hard by the reality of the coronavirus pandemic, which is why we designed our coronavirus response bills, the Coronavirus Preparedness and Response Supplemental Appropriations Act, the Families First Coronavirus Response Act (FFCRA), and the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help them get through this crisis. In total, these bills provide tools for every American to get through this crisis.
Most recently, we passed the CARES act, which provides individuals and families with cash payments, paid sick leave for workers and small businesses, and unemployment insurance that is so expansive it covers a wider breadth of our economy, including the self-employed and those in the “gig” economy.
Putting Money in Americans’ Pockets
CARES gives workers and families at least $1,200, including those who receive welfare and Social Security benefits. How much? The full amount is $1,200 for individuals, $2,400 for couples, and $500 for each child.
How it works: The money is available for individuals with adjusted gross income at or below $75,000 ($112,500 for heads of household), and couples with adjusted gross income at or below $150,000. And if you have children, you will receive an additional $500 per child. For example, a married couple with two children would receive $3,400.
Your tax rebate amount will be reduced by $5 for each $100 your adjusted gross income (AGI), exceeds the above AGI limits. That means for those without children, an individual will not receive any rebate if their AGI exceeds $99,000; and the same is true for couples with more than $198,000 of AGI. A married couple with two children will not receive any rebate if their AGI exceeds $218,000.
How does the IRS figure out your eligibility? The IRS will use 2019 return information to determine the amount of the rebate you qualify for. If you have not yet filed your 2019 tax returns, the IRS will use your 2018 return information.
Additionally, we put policies in place that will make the process for receiving these funds simplified for seniors and individuals with disabilities who did not file taxes to ensure they get these dollars quickly.
Providing Workers with Paid Sick Leave, Helping Small Businesses with the Cost
During this difficult time, workers shouldn’t have to choose between going to work sick to get a paycheck, or take time to care for loved ones or recover from their own illness. But if our local businesses shutter, these workers won’t have a job to return to. We laid the groundwork to help through the Families First Coronavirus Response Act (FFCRA), the second Coronavirus bill. We designed it so that paid leave isn’t an expense for the business, but a benefit to both worker and employer. And because it’s temporary, it focuses specifically on the coronavirus crisis.
How it works: Every dollar of leave that local businesses are required to pay to employees for sick leave and family and medical leave wages is reimbursed — dollar-for-dollar — by the federal government. Workers can care for themselves and loved ones impacted by the pandemic, while the credit helps businesses stay up and running. After all, workers who knowingly show up sick jeopardize the health of coworkers and business operations.
There’s More: Because some businesses may not be able to afford the costs associated with coronavirus-related paid leave, the Treasury Department has committed to advance funds to employers to protect businesses concerned about cash flow. Employers will be able to use cash deposited with the IRS to pay sick leave wages. Additionally, for businesses that would not have sufficient taxes to draw from, Treasury will make advances to small businesses to cover those costs.
The focus here is temporary federal coverage for smaller, local businesses with fewer than 500 employees. Nearly 90% of businesses with more than 500 employees already offer paid sick leave to their full-time workers. Particularly small businesses — those with fewer than 50 employees — that need more flexibility from the longer-term mandate where it creates significant hardship can seek exemptions from the Department of Labor.
Protecting America’s Workforce with Unemployment Insurance
America’s workers rely on unemployment insurance when their employers can no longer afford to keep them on the payroll. The coronavirus crisis means more employers will see a drop in business, and have a harder time making payroll for a temporary period — so we need to help those laid off employees get through this time. Keeping workers afloat with temporary, but meaningful changes will help people weather this storm so that when we beat this crisis, they can resume their livelihoods.
How it works: The CARES Act expands the size and scope of unemployment benefits to reach a greater variety of Americans facing hardship. We’re committing $250 billion to expand unemployment benefits to reach (for the first time) self-employed people and independent contractors, like Uber drivers and gig workers, so that they too can unemployment during the public health emergency. The bill also includes support to state and local governments and nonprofits so they can pay unemployment to their employees.
For How Long? In keeping with scientific estimates of the duration of the crisis, America’s workers can stay on unemployment for a longer period of time. Our bill makes benefits more generous by adding a $600 a week across-the-board payment increase through the end of July. In addition, for those who need it, the bill provides an additional 13 weeks of benefits beyond what states typically allow.
This action responds to an urgent need: State unemployment offices are already experiencing an unprecedented spike in claims and many workers are not covered under regular state unemployment laws. According to one analysis of preliminary reports across 30 states, filings for U.S. unemployment benefits are poised to surge to more than 2 million. Workers will be better equipped to get through this period with these benefits.
Local Businesses: Pay Half Your Workers’ Salary, We’ll Pay the Other Half
Americans now have a stronger social safety net thanks to Congress’s work to expanding the availability and time of unemployment insurance, but America’s economic first responders have always been local businesses. We know local businesses would rather keep their workers on payroll — after all, these workers know the job and understand the community. And the communities these local businesses serve need them to stay open.
The employee retention credit championed by Ways and Means Republicans and Leader Kevin McCarthy helps local businesses keep workers on the job. We’re sending a clear message to local businesses closed or partially closed due to a government order, who’ve seen their income drop by 50 percent or more: if you pay half of your workers salary, we’ll pay the other half up to $10,000 through this crisis — including half of the health benefits.
Who is this credit available to? Employers whose operations were fully or partially shut down by government order limiting commerce, travel, or group meetings due to coronavirus. Additionally, employers whose quarterly receipts are less than 50% for the same quarter in the prior year also qualify. However, employers that receive a loan under the “paycheck protection program” in the CARES Act are not eligible for this credit.
What wages does the credit apply to? Generally, the credit applies to wages paid to employees during which they are furloughed or otherwise not working (for example, due to reduced hours) as a result of their employer’s closure or economic hardship. However, for local businesses with 100 or fewer employees, all employee wages qualify for the credit, regardless of whether they are furloughed or face reduced hours. But wages that qualify for the paid leave credit under the Families First Coronavirus Act are not eligible for this credit.
How long is this credit available? The credit is for wages paid by eligible employers from March 13, 2020 through December 31, 2020.
