Executive Orders
On Saturday, August 8, 2020 President Donald Trump signed four executive orders to provide economic relief in response to the ongoing pandemic. Here is a breakdown of the four executive orders:
1. Treasury and Housing and Urban Development (HUD) departments have been directed to find ways to provide temporary financial assistance to struggling renters and homeowners.
The order also directs HUD to do what it can to help renters and homeowners avoid eviction and foreclosure.
2. Moratorium on federally-backed student loan payments (and zero interest), previously set to expire September 30, has been extended until the end of the coronavirus crisis.
Student loans held by private lenders do not qualify for this relief.
3. Given the recent expiration of the $600 weekly Federal add-on to state unemployment benefits, a new $300 weekly add-on will be implemented, with the potential for an additional $100 from the filer’s resident state.
Extra benefits would be available through December 6 or until the Disaster Relief Fund assets dip below $25 billion.
4. The Treasury Department has been directed to defer the 6.2% Social Security tax withheld from employee wages, for those making under about $104,000 annually.
This suspension would begin on September 1 and last through year-end. In the absence of Congressional action, these payroll taxes would have to be repaid later, because the President does not have the authority to cancel them entirely.
With regard to the payroll tax, since this action does not take effect until September 1, Wilson Toellner advises that payroll processors continue to follow existing rules until further guidance is released. Under the information currently available, there is risk to employers that in certain situations, payroll taxes not withheld from employee checks under this act could create a future debt for the employer, when they are payable in the future. Expect further developments in this area in the weeks ahead.
If you have any questions, please call our Mid-MO CPA firm today. We can be reached at any of the phone numbers listed below. You can also follow us on our social media channels listed below to stay up to date on our latest announcements.
