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Unemployment Compensation

The American Rescue Plan extended employment assistance, starting in

March 2021, and waived some federal taxes on unemployment benefits to
assist those who lost work due to the COVID-19 crisis.

Across the nation, millions of Americans lost their jobs in the wake of the COVID-19
pandemic and, as a result, claimed unemployment benefits. The American Rescue
Plan extended employment assistance, starting in March 2021.
In addition, the American Rescue Plan waives federal income taxes on the first
$10,200 of unemployment benefits received in 2020 by individuals with adjusted
gross incomes less than $150,000. The tax relief extends to both workers who
received benefits through federal unemployment programs as well as those who
received traditional benefits through their state unemployment insurance fund. This
law will provide tax relief for Americans who lost their jobs and utilized
unemployment benefits last year – allowing millions of workers to focus their
benefits on covering essentials during the COVID-19 pandemic.

Paycheck Protection Program

The Paycheck Protection Program is providing small businesses with the

resources they need to maintain their payroll, hire back employees who may
have been laid off, and cover applicable overhead.

The Paycheck Protection Program established by the CARES Act, is implemented by

the Small Business Administration with support from the Department of the Treasury.
This program provides small businesses with funds to pay up to 8 weeks of payroll
costs including benefits. Funds can also be used to pay interest on mortgages, rent,
and utilities.

The Paycheck Protection Program prioritizes millions of Americans employed by small

businesses by authorizing up to $659 billion toward job retention and certain other
expenses.
Small businesses and eligible nonprofit organizations, Veterans organizations, and
Tribal businesses described in the Small Business Act, as well as individuals who are
self-employed or are independent contractors, are eligible if they also meet program
size standards.

.Unemployment Compensation.......................................................................................... 1
Paycheck Protection Program.............................................................................................. 1