By implementing the CARES Act, the Treasury Department is taking unprecedented steps to preserve jobs in industries adversely impacted by the COVID-19 outbreak.
The CARES Act offers meaningful financial support to American businesses and job creators so they can better support employees and be prepared to get back to business as soon as possible.
Employee Retention Credit
Employers of all sizes that face closure orders or suffer economic hardship due to COVID-19 are incentivized to keep employees on the payroll through a 50% credit on up to $10,000 of wages paid or incurred from March 13, 2020 through December 31, 2020.
FAQ: Employee Retention Credit
Additional Tax Credits
Payroll Tax Deferral
To enhance cash flow so that businesses can better maintain operations and payroll, employers and self-employed individuals can defer payment of the employer share of the Social Security tax they otherwise are responsible for paying to the federal government with respect to their employees. The deferred employment tax can be paid over the next two years—with half of the required amount to be paid by December 31, 2021 and the other half by December 31, 2022.
Payroll Support
Treasury has published the resources to assist some eligible businesses in applying for payroll support to enable the continued payment of employee wages, salaries, and benefits, and for loans pursuant to the Coronavirus Aid, Relief, and Economic Security (CARES) Act (PSP1) and the Consolidated Appropriations Act, 2021 (PSP2).
PSP2 Information and Application Procedures:
- Begin the PSP2 Application Process
- PSP2 Guidelines and Application Procedures (12/29/20)
- Preparing for the PSP2 Application (12/29/20)
- Form of PSP2 Agreement – Passenger Air Carriers
- Form of PSP2 Agreement – Contractors
PSP1 Information and Application Procedures:
- Guidelines and Application Procedures for Payroll Support to Air Carriers and Contractors (3/30/20)
- FAQ: Payroll Support to Air Carriers and Contractors Under Division A, Title IV, Subtitle B of the CARES Act (4/2/20)
- FAQ: Application Procedures for Payroll Support to Air Carriers and Contractors (4/3/20)
- FAQ Update: Payroll Support to Air Carriers and Contractors (4/3/20)
- FAQ Update: Payroll Support to Air Carriers and Contractors (4/20/20)
- FAQ Update: Payroll Support to Air Carriers and Contractors (7/14/20)
- FAQ Update: Payroll Support to Air Carriers and Contractors (12/16/20)
- Form of Payroll Support Program Agreement
Compliance
Frequently Asked Questions (updated 6/30/2020)
Creating a Certified Digital Identity (7/9/2020)
Data Collection Template Guidance (7/19/2020)
General Questions and CARES Administration Hub Guidance (10/16/2020)
Loan Program
Treasury has published resources for making loans to provide liquidity to eligible businesses related to losses incurred as a result of coronavirus.
Program Information
- Procedures and Minimum Requirements for Loans to Air Carriers and Eligible Businesses and National Security Businesses under Division A, Title IV, Subtitle A of the CARES Act (3/30/20)
- FAQ: Loans to Air Carriers and Eligible Businesses and National Security Businesses (4/10/20)
- FAQ Update: Loans to Air Carriers and Eligible Businesses (7/15/20)
Related Press Releases
- Treasury Announces Payroll Support to Aid Employees of Small Passenger Air Carriers (4/10/20)
- Statement by Secretary Mnuchin on the Payroll Support Program (4/14/20)
- Treasury Finalizes Agreements with Major Airlines, Disburses Initial Payroll Support Program Payments (4/20/20)
- Update on Treasury Implementation of the Payroll Support Program for the Aviation Industry (5/12/2020)