Finally, Congress has reached an agreement on a package to help the economy, workers, individuals, and yes, your small business.
Here are the highlights:
- Direct, one-time payments of up to $1,200 per adult and $500 per child.
- Your staff, who you may have had to furlough or temporarily lay off, “would get whatever amount a state usually provides for unemployment, plus a $600 per week add-on.” (Yahoo)
- The great news for the self-employed, gig workers, and freelancers is that they will, for the first time ever, be able to collect unemployment.
- There will be an “employee retention” tax credit that’s estimated to provide $50 billion to companies who keep their staff on payroll and cover 50% of their paychecks. Under the agreement, a small business that is able to retain employees and do so will be eligible for the tax credit.
- Companies would also be able to defer payment of the 6.2% Social Security payroll tax.