Aug 10 Unable to Strike Deal, President Trump Issues Executive Orders for Economic Assistance
On August 8, 2020, President Trump signed four executive orders to provide economic assistance as the self-imposed deadline for Congress to reach a coronavirus relief package passed. These four executive orders are summarized below:
- Unemployment Assistance: Reinstate the previously expired enhanced unemployment benefit, reducing the benefit from $600/week to $400/week through weeks of unemployment ending no later than December 27, 2020. Note that the $400/week benefit will be borne 75% by the federal government and 25% by each of the respective states.
- Payroll Tax Deferral: Defer employee-portion of certain federal payroll taxes for employees earning less than $100,000 annually on wages paid from September 1, 2020 – December 31, 2020. As this payroll tax holiday is only temporary, President Trump has authorized the Secretary of the Treasury to investigate means to permanently eliminate this obligation.
- Assistance to Renters & Homeowners: Protect homeowners from foreclosure and tenants from eviction due to the hardships caused by COVID-19.
- Student Loan Payment Relief: Extend the moratorium on interest and principal on student loans from September 30, 2020 to December 31, 2020.
While lawmakers continue to seek agreement on a larger coronavirus relief package, this Executive branch action is the latest effort to stimulate the economy as we battle this pandemic.
Sax will continue to update you as further details are made available. Reach out to your Sax advisor or email [email protected] with questions. For more and on-going information relative to your state and business, visit Sax’s COVID-19 Resource Center.