The COVID Relief Extension

    The new COVID relief package (Consolidated Appropriations Act, 2021) was signed on December 27. A Bill like this is unlikely to be changed after it has been signed. This means we have a much clearer understanding of what it will provide.

    This is actually part of a larger piece of legislation that includes funding the government until September 2021. The COVID relief part of the law renews many of the programs created with the Coronavirus Relief and Economic Security (CARES) Act. For example, the Paycheck Protection Program (PPP) will continue. There is also a clarification that businesses can deduct expenses paid with funds from a forgiven PPP loan. There will be an extension of Federal Pandemic Unemployment Assistance (FPUA). This allows for Unemployment Insurance for Independent Contractors and those who work in the Gig Economy. This will go in effect 1 week later due to the delay in signing the Bill. Another round of Economic Impact Payments can be expected, again later than some had promised. However, the Internal Revenue Service (IRS) has gone through this process earlier in the year so it should be a little smoother. Most can expect to receive $600 payments.

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