Coronavirus relief package: Benefits you get if Congress reaches a deal
After talks failed last week, negotiators were at a stalemate on the next economic relief package on Thursday again. The Senate is now also adjourned until September. This means there is unlikely to be any coronavirus deal this month at least. However, this does not mean there will be no stimulus package. Let’s take a look at the benefits that you could get once Congress approves a coronavirus relief package.
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Coronavirus relief package: what benefits might you get?
The very first benefit could be another stimulus check. Both Democrats and Republicans agree on sending $1,200 stimulus checks to Americans. However, there are differences on who would qualify and the amount of the payment for dependents.
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The next benefit that both sides agree on is extending the federal unemployment payment. Those who filed for unemployment got an extra $600 per week under the CARES Act. However, the benefit expired on July 31.
Although both sides agree on extending the unemployment benefit, they differ on the amount. Democrats want $600, while Republicans favor a reduced rate. Due to the stalemate, President Trump introduced a memorandum to provide $400 per week in unemployment benefits last week.
Another benefit that will likely be part of the next coronavirus relief package is an eviction moratorium. Such a program would help you pay rent, put a hold on evictions for a year and help rental property owners cover costs.
Democrats want such a benefit for Americans, but it was not part of the Senate’s proposal. On the other hand, Trump is in favor of it, and his executive order even included a commitment to renew the eviction moratorium.
One more benefit that you may get is a back-to-work payment. This basically is a temporary weekly bonus for those who get a new job or are rehired. Not many are in support of this proposal, including Republicans and Democrats. However, the White House briefly talked about the idea a few months ago.
Indirect benefit you may get
An indirect benefit that you may get from the coronavirus relief package is through an employee retention tax credit. Under this, an employer will receive refundable tax credits for salaries and wages paid during the coronavirus pandemic. This encourages businesses to keep workers on the payroll. Both the HEALS Act and HEROES Act support this provision.
One more indirect benefit you may get from the coronavirus relief package is through the Paycheck Protection Program (PPP). Small businesses can get forgivable loans so that they can continue to pay salaries and wages. Lawmakers first introduced the program a few months ago, but it is not clear if it served the purpose.
Another indirect coronavirus relief package benefit that could magnify your stimulus check is the payroll tax cut. Neither the HEROES Act, nor the Senate’s HEALS Act includes a payroll tax cut, but Trump wants it to be a part of the relief package. This will ensure that working Americans keep more of their earnings. Trump’s executive order includes deferring certain taxes from August through December for those with income of less than $100,000.