Effective April 2, 2020, the new emergency act requires legislation to provide more than $100 billion in funding to supplement expanded unemployment benefits, paid sick leave, and assistance for families. Essentially, these changes allow for additional job protection during COVID-19 while subsidizing businesses with future tax reimbursements. The policy provisions specifically impact two primary groups of employers: Companies with 500 or fewer employees and an exemption clause for companies with 50 or fewer employees.
The bill authorizes the Secretary of Department of Labor to exclude certain healthcare providers, emergency responders, and small businesses with under 50 employees in which this policy would “jeopardize the future viability as a going concern.” Please be advised, the details or instructions outlining business requirements to meet exemptions status have yet to be released. In the interim, read here for additional information on tax credits.