COVID-19 Employer Playbook

Treasure Department Attestation Requirement Treasury has indicated that, as part of the application process, an applicant must certify in good faith that: • Current economic uncertainty makes the loan necessary to support ongoing operations. • The funds will be used to retain workers and maintain payroll or to make mortgage, lease, and utility payments. • The applicant has not and will not receive another loan under this program. • The applicant will provide to the lender documentation that verifies the number of full-time equivalent employees on payroll and the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the covered period. • Loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities. • All the information the applicant provided in the application and in all supporting documents and forms is true and accurate. Knowingly making a false statement to get a loan under this program is punishable by law.

Additional Information

Relief for Big Businesses A significant economic stimulus for larger businesses is included in the law as well. Nearly $500 billion in economic relief is available for businesses with over 500 employees, with a special focus on industries hardest hit by COVID-19. Monies will be distributed via loans and other forms of relief for corporations. Companies are required to pay the government back and are subject to public disclosures about economic relief payments received. Tax Credits for All Businesses Fully refundable tax credits are available for businesses of all sizes that are closed or distressed to help them keep workers on payroll. The goal is to keep employees employed, to incentivize hiring back of employees, or to put employees on a paid furlough to make sure they have jobs to return to. The credit covers up to 50% of payroll on the first $10,000 of compensation, including health benefits, for each employee. For employers with more than 100 full-time employees, the credit is for wages paid to employees when they are not providing services because of the coronavirus. Eligible employers with 100 or fewer full-time employees could use the deduction even if they aren't closed. Relief for Existing SBA Loans The law allocates $17 billion to cover six months of payments for small businesses already using SBA loans. Delay of Payment of Employer Payroll Taxes Certain employers will be allowed to defer paying their 6.2% share of the Social Security payroll taxes. Half of this deferred amount is due by December 31, 2021 and the other half by December 31, 2022. Similar provisions apply to self-employed individuals. However, 50% of the self-employment tax still must be remitted on the existing deadlines. This provision is in effect from the effective date of the CARES Act through December 31, 2020.

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