President Signs Executive Order for COVID Relief, But it Isn’t Law Yet

Beth Dean 08.11.20
126 Pen On Paper

Please visit our COVID-19 resources page with more information for business owners and employees.

 

During the weekend, President Trump signed an executive order and three memoranda for COVID relief.

This executive order bypassed Congress, so debates are underway on its constitutionality and whether it is indeed law. Until we receive definitive word on its status, we cannot advise or take action on any of its contents.

Here is what the executive order and accompanying memoranda propose:

Payroll tax cut

If enacted, the memorandum will include a “payroll tax holiday,” giving employers the option to let employees defer certain federal tax deductions from employee paychecks from September 1 until the end of 2020 for those making fewer than $4,000 biweekly. The tax holiday would be a deferral and not an exemption, meaning people would still have to repay those taxes after the deferral period ends, unless there are exceptions.  

 

Unemployment benefits

The $600 per week unemployment benefits under the CARES Act expired on July 31. Under the memorandum, unemployment benefits would continue retroactively to August 1 at a rate of $400 per week, with $300 of those dollars coming from the Federal Emergency Management Administration (FEMA) fund and the other $100 from individual states.

 

Eviction notices

The CARES Act banned late fees and eviction filings until July 25 on properties backed by federal mortgage programs, like Fannie Mae, or those receiving federal funds like HUD. The executive order is low on detail about extending those filings. It leaves the decision to Health and Human Services and the Centers for Disease Control and Prevention.

 

Student loans

Deferrals for student loans obtained through the Department of Education currently expire on September 1. The executive order’s accompanying memorandum moves to extend the postponement to the end of the year, with repayments beginning again January 1, 2021.

 

Stimulus checks

Since payments such as stimulus checks must pass through congressional negotiations, there is no mention of a second round of stimulus checks to individual taxpayers in the executive order.

 

So, where are we now? 

Nothing is official yet. If the talks in Congress resume and both sides agree, then legislation could be introduced and voted on. If they agree on a deal in the coming weeks, and that deal results in the passage of a new bill, the executive action could be null and void. 

At this point, we are not taking any actions related to the executive order and accompanying memoranda due to the uncertainty around it. Nextep continues to monitor the situation closely. We will let you know as soon as there is a more concrete law.

Also on Nextep

Ah, the holiday season—a time for joy, festivities, and the age-old puzzle of compensating your employees. Let’s demystify the rules of holiday pay for both our hourly (nonexempt) and salaried (exempt) workers. For the Hourly Heroes Picture your business decked out in holiday cheer, but your nonexempt employees are sipping cocoa at home. Under the […]
Read more
Keep Your Party Pants Professional As the year ends, and you’ve achieved feats at work that deserve a standing ovation, the holiday office party is your well-earned, much-awaited reward.  But beware! When the festive spirit meets the allure of a bottomless drink supply, things can take a wild turn, leaving you nursing a hangover, regret, […]
Read more
We’ve talked recently about the importance of sustainability in business. Let’s take it a step further and look at ESG, or Environmental, Social, and Governance.  The Impact of ESG on Companies Environmental (E) Companies that focus on their environmental impact are making a positive change. They reduce their carbon footprint, use clean energy, and find […]
Read more
Sustainable business isn’t just for hippies! As we discussed in our previous article, sustainability is increasingly important to today’s business. It is a crucial and relevant issue that affects everyone and every organization, regardless of industry or beliefs. Sustainability involves taking a long-term, holistic view of how we interact with the environment and our communities, […]
Read more
At Nextep, we aim to stay informed about CEO concerns in order to better help with problem-solving. We were surprised to learn that sustainability has become a top concern. The statistics bring CEO concerns to light: A Gartner survey found that CEO concern about sustainability has increased 292% from their 2021-22 survey. In a survey […]
Read more
It’s not the most savory of topics, but still merits discussion. All of your employees will need to use the bathroom during work. Here’s a potty primer, if you will. Disability and Bathrooms The Americans with Disabilities Act (ADA) has clear regulations on bathroom accessibility in the workplace. Much of the guidance revolves around making […]
Read more
We’ve reported at length about preventing discrimination in the workplace. But let’s take a step back now and brush up on Title VII, the sweeping regulation that started it all.  Title VII of the Civil Rights Act forbids discrimination in any aspect of employment, including hiring, firing, pay, job assignments, promotions, layoff, training, fringe benefits, […]
Read more
Time to check your handbook again for NLRB compliance The National Labor Relations Board (NLRB) has been busy shaping employee handbooks and workplace policies. With the recent Stericycle Inc. decision, the NLRB has introduced a new legal standard for evaluating employer work rules under Section 8(a)(1) of the National Labor Relations Act (NLRA).  Understanding the […]
Read more
The Answer Depends on Your State…For Now As we reported in January, non-compete agreements preventing employees from working for competitors are becoming increasingly unenforceable. The FTC is currently working on banning them at a federal level, but unless and until that decision comes, non-competes are enforced at a state (and sometimes even local) level.  As […]
Read more
When hiring workers, knowing whether they’re employees or independent contractors is essential. The difference between the two can significantly impact your business, including your tax liability, your liability for workers’ compensation claims, the worker’s rights and benefits, and your ability to control how your workers do their jobs. Read all about it here, and check […]
Read more
Employers Must Now Prove “Substantial Increased Cost” to Deny Religious Accommodation Recently, the Supreme Court ruled that employers must now demonstrate a substantially increased cost to deny an employee’s request for a religious accommodation.  This ruling, which comes in the case of Groff v. DeJoy, clarifies the standard for “undue hardship” under Title VII of […]
Read more
Here’s How the Recent Ruling Affects Your Company You may have read that in late June, the Supreme Court struck down affirmative action in college admissions. Here’s the implication this ruling could mean for you as a small or medium-sized business owner. To be clear, the Supreme Court’s decision on affirmative action does not explicitly […]
Read more

Download Our App