The CARES Act is officially known as The Coronavirus Aid, Relief, and Economic Security Act.
The CARES Act was a 2.2 trillion economic stimulus bill passed by the U.S. Congress and signed into law by President Donald Trump on March 27, 2020. This is bill was in response to the economic fallout of the COVID-19 pandemic in the United States. The spending primarily includes $300 billion in one-time cash payments to individuals. It also included $208 billion in loans to major industry, and $349 billion in Small Business Administration loans.
The CARES Act was broken down into two main section. The first section, known in the legislation as Division A, covered language that approved provisions for many programs and spending. It is specifically title as, “Keeping Workers Paid and Employed, Health Care System Enhancements, and Economic Stabilization”. The second section, known as Division B in the legislation, covered all the appropriations that were for emergencies or that were discretionary. This section is specifically titled, “Emergency Appropriations for Coronavirus Health Response and Agency Operations.
At the end of this course, the student will be able to:
- Identify the amount of funding allocated for the various programs within the CARES Act including the Paycheck Protection Program
- Determine what the different provisions under the CARES Act are designed to perform
- Identify the maximum amounts of taxpayer income before being phased out of rebates
- Determine the maximum amount of employees an employer may have before losing employee retention credit capabilities
CPE Credit: 1 CPE for CPAs and EAs
Instructional Method: Self-Study
NASBA Field of Study: Taxes
Program Prerequisites: Basic understanding of federal tax code.
Advanced Preparation: None
Publication Date: March 30, 2021