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COVID-19

Pension Fund COVID-19 PPP Loans and Other Provisions

By January 12, 2021No Comments

Colleagues – attached is a summary of who qualifies for the PPP Loan round 2 as it pertains to our ministries. The New Bill document is a summary of other components of the bill that could of interest to you. These documents were prepared by Ann Stillman, General Counsel for Concordia Plan Services and Chair of the Core Lawyers Working Group for the Church Alliance, of which Pension Fund is a member. You are free to share these as needed.

If you have any comments or questions, please forward them to me [email protected].

Rev. Dr. Todd Adams

The new legislation extends and/or modifies some of the provisions of the previous CARES Act and Families First Coronavirus Response Act. See below for more information, and refer to the Legislative Updates section of the COVID-19 page of ConcordiaPlans.org for more information on the previous legislation.

Pandemic Unemployment Assistance: Click here for information from the CARES Act.

Section 201: Extension and Benefit Phaseout Rule for Pandemic Unemployment Assistance

  • Extends Pandemic Unemployment Assistance (PUA) to March 14, 2021 and allows individuals receiving benefits as of March 14, 2021 to continue through April 5, 2021, as long as the individual has not reached the maximum number of weeks.
  • Increases the number of weeks of benefits an individual may claim from 39 to 50.
  • Provides for appeals to be at the state level.
  • Provides states authority to waive overpayments made without fault on the part of the individual or when such repayment would violate equity and good conscience.
  • Provides a transition rule for certain individuals transitioning between PUA and the Pandemic Emergency Unemployment Compensation program.
  • Limits payment of retroactive PUA benefits to weeks of unemployment after December 1, 2020.

Section 202: Extension of Emergency Unemployment Relief for Governmental Entities and Nonprofit

Organizations.

  • Extends through March 14, 2021 a provision in the CARES Act which amended the Families First Coronavirus Response Act to provide federal support to cover 50% of the costs of unemployment benefits for employees of state and local governments and non-profit organizations.

Section 203. Extension of Federal Pandemic Unemployment Compensation.

  • Restores the Federal Pandemic Unemployment Compensation (FPUC) supplement to all state and federal unemployment benefits at $300 per week, starting after December 26 and ending March 14, 2021.

Recovery Rebates for Individuals: Click here for information from the CARES Act.

Secs. 272-273. Additional 2020 recovery rebates for individuals.

  • Provides a refundable tax credit in the amount of $600 per eligible family member. The credit is $600 per taxpayer ($1,200 for married filing jointly), in addition to $600 per qualifying child. The credit phases out starting at $75,000 of modified adjusted gross income ($112,500 for heads of household and $150,000 for married filing jointly) at a rate of $5 per $100 of additional income.
  • The provision also provides for Treasury to issue advance payments based on the information on 2019 tax returns. Eligible taxpayers treated as providing returns through the non-filer portal in the first round of Economic Impact Payments, provided under the CARES Act, will also receive payments.
  • Treasury may issue advance payments for Social Security Old-Age, Survivors, and Disability Insurance beneficiaries, Supplemental Security Income recipients, Railroad Retirement Board beneficiaries, and Veterans Administration beneficiaries who did not file 2019 returns based on information provided by the Social Security Administration, the Railroad Retirement Board, and the Veterans Administration.
  • In general, taxpayers without an eligible social security number are not eligible for the payment. However, married taxpayers filing jointly where one spouse has a Social Security Number and one spouse does not are eligible for a payment of $600, in addition to $600 per child with a Social Security Number.
  • The provision aligns the eligibility criteria for the new round of Economic Impact Payments and the credit for the Economic Impact Payments provided by the CARES Act. Taxpayers receiving an advance payment that exceeds the amount of their eligible credit will not be required to repay any amount of the payment. If the amount of the credit determined on the taxpayer’s 2020 tax return exceeds the amount of the advance payment, taxpayers will receive the difference as a refundable tax credit.
  • Advance payments are generally not subject to administrative offset for past due federal or state debts. In addition, the payments are protected from bank garnishment or levy by private creditors or debt collectors. Additionally, the provision instructs Treasury to make payments to the territories that relate to each territory’s cost of providing the credits

Paid sick and family leave: Click here for information from the Families First Coronavirus Response Act.

Sec. 286: Extension of credits for paid sick and family leave.

  • The provision extends the refundable payroll tax credits for paid sick and family leave, enacted in the Families First Coronavirus Response Act, through the end of March 2021.
  • It also modifies the tax credits so that they apply as if the corresponding employer mandates were extended through the end of March 2021. This provision is effective as if included in FFCRA.

 

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