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NEW EXECUTIVE ACTION AUGUST 8TH! UI Extra $400/wk, Payroll Tax Deferral, and MORE - YouTube
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hey guys it's jamie trull here your
favorite cpa
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and financial literacy coach and i
wanted to bring you some really
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important updates
tonight it is saturday night august 8th
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and of course i've got nothing else to
do but come here and give you some
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important updates
about these stimulus and what is going
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on
with all the things right now so the
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president just signed
four executive orders that i want to
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talk to you about that could be
impactful
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for you so i'm going to talk through
those in a minute but first i want to
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kind of take it back a minute and just
talk about why
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these executive orders have happened so
over the last
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few weeks the senate has been
negotiating the democrats and
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republicans have been coming together
trying to find a middle ground between
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their two bills
the republican bill was approximately
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one trillion dollars for kind of the
next
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large stimulus similar to the carers act
that we had back in march
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and the democratic bill was around three
trillion so there were a lot of
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different sticking points
in here that they just could not get
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through they kind of set a date of
yesterday to hopefully have a deal
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they did not have a deal so
as the president had kind of said he was
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probably going to do
he has put some executive orders in
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place now this does not mean
that uh they are not going to be
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negotiating anymore this does not mean
that a stimulus is off the table
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congress is still negotiating
this was kind of a emergency executive
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order
that the president decided needed to be
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put into
place and i'll talk to you in a minute
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about kind of some of the controversy
around that and the fact that there's
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probably going to be some legal
challenges
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around these executive orders and
whether the president actually has the
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authority to do them or not
so importantly even when you see these
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there's still a lot to be worked out
here and it'll be really interesting to
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see how all of this kind of
plays out in the end but i wanted to at
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least show you what they are
so that you would be aware so let's jump
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on into them i'm actually going to go
over to whitehouse.gov
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and show you where you can actually go
read the executive orders they're all
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really short they're like a page to
three pages each
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so you can quickly read them but i'm
going to show you them and walk through
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them for you so you can kind of get the
high points and understand what is going
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on and how it might affect
you okay so now we are over at
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whitehouse.gov and it's actually
whitehouse.gov
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forward slash presidential dash actions
forward slash if you put that in you can
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actually see all the executive orders
that the president has signed
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and you'll see here on this page we have
four
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executive orders that are showing up as
uh
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dated august 8th which is today's date
saturday august 8th this is when these
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were signed by the president
so i'll tell you the four just really
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quickly overview the four
different um executive orders that you
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can see here you're going to be able to
see the very first one
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which is actually related to
unemployment so it
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is uh changing up and including some
additional unemployment benefits so
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we'll jump into that in a minute
the second one is about payroll taxes
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specifically employee
payroll taxes so those are social
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security and medicare taxes there's a
deferral on that which i will show you
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and talk to you a little bit more
about and then there are two other ones
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one is extending a moratorium
on foreclosures and on evictions and the
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other one
is about student loan relief so we'll
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talk about those a little bit as well
but i really want to focus in on the
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first
two for this live because this is really
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very impactful specifically also to
business owners but employees as well
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okay so we're going to jump into this
first one here which is memorandum on
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authorizing the other needs assistance
program for major disaster declarations
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related to coronavirus disease 2019.
this is really talking about
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unemployment and unemployment benefits
so remember
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through the cares act we had an extra
600
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that everybody regardless of whether you
were on regular unemployment
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or you were on pandemic unemployment
assistance pua
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you would be eligible to get this extra
600 in
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federal pandemic unemployment
compensation fpuc
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that's what the 600 dollars was it ran
out at the end of july
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so there's been a lot of talk between
the parties of how much they want to
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give there's been a disagreement on how
much they think
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these should be extended there's been a
lot of debate on this topic specifically
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because of the concern
that it disincents people to work and
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that some some people were making
more on unemployment than they were at
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their
job so there's been a lot of debate
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about what needs to happen
but it's been very clear that to kind of
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prevent that economic cliff from
happening
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there needs to be some additional
support
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for people who are unemployed during
this time
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so brandon come down to section two
because that's where it really starts
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talking about what this is
so under section two for providing
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disaster relief funds if you go to the
second paragraph
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it says to provide financial assistance
for the needs of those who have lost
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employment as a result of the pandemic
i am directing up to 44 billion from the
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drf the drf is the department of
homeland security's disaster relief fund
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that has some additional money left over
in it
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at the statutory mandated 75 federal
cost share
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be made available for lost wages uh lost
wages assistance to eligible claimants
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to supply
to supplement state expenditures in
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providing these payments at least 25
billion
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um etc etc so you'll get into that you
wonder what the 75 percent means
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um let's read on and and it'll get into
a little bit what the 75 percent mean so
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the states are also going to have some
obligation here as well
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the states are going to be obligated to
pay the other 25
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so what this is basically saying is that
the federal government will pay 75
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percent
the states will pay 25 how much
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are we talking about well let's come on
down here um
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in c we see here that it says in
exercising this historic
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authority the secretary acting through
the fema administrator
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shall subject to the limitations above
approve a lost wages assistance program
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that authorizes the governor
to provide a 400 dollar payment per week
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which shall reflect a 300 federal
contribution
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to eligible claimants from the week of
unemployment ending august 1st 2020. so
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remember
our last benefits the extra 600 ran out
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at the end of july
so this picks up on august 1st and again
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that would be 300
federally 100 from the state what's the
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problem here
well states are probably going to have a
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bit of an issue with this states are
running
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really dry um on funding right now
especially given
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all that has been going on and so this
is likely to be met with quite a bit of
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pushback
one thing that's a little bit unclear to
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me is whether this will be an opt-in it
seems like this may be something that
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states can opt
in or opt out of but the question is if
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states stop out of their
extra hundred dollars will they still
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get the 300
from the federal government or will they
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not if they don't pay their hundred
so i think that this is something that
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we're gonna see a little bit of
discussion on this is gonna be a big
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point of contention over probably the
next couple of weeks
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so this is if you're hoping for some
additional unemployment
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this might be good news to you but i
just caution you to wait and see and
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until that money is in your bank account
uh don't count on it because
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there is going to be some further
discussions and this could play out
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differently in different
states as well so one last
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important thing to point out when it
comes to this
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unemployment executive order is that it
does
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change who's eligible for it so
previously the extra six hundred dollars
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as long as you qualified for at least
one dollar
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in your state benefits you would be
eligible for
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the extra six hundred this has been
changed now in this executive order and
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you must actually be
eligible for at least 100
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in benefits either through regular state
unemployment or
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through pandemic unemployment assistance
so that's just something to keep in mind
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if you're also earning a little bit of
money
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you can pretty quickly trip over that
line depending on what state you're in
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and what their calculation is for
benefits and every state is a little bit
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different
but just keep that in mind because you
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could easily kind of tripwire yourself
out of the extra money a little bit
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easier than you could with the extra
600.
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okay so now i just jumped into the
second one this is the memorandum on
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deferring payroll tax obligations
in light of the ongoing covid19 disaster
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so this is talking about payroll taxes
importantly this is talking about
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employee side
payroll taxes what does that mean social
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security and medicare are payroll taxes
okay
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that is what employees pay a portion of
and employers also pay a portion of if
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you're self-employed you pay
both sides of it you pay employee and
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employer but this specifically is just
talking about employee
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the reason being there's already a
deferral process
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in place for employer payroll taxes that
was part of the cares act where you
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could
actually defer your payroll taxes for
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the majority of 2020
and then you wouldn't have to pay them
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until the end of the year 2021
for half of it and the end of the year
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2022 for half of it so that was already
something that was in place
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now we're looking at employee payroll
taxes so this would
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increase paychecks actually going to
employees because
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you now would have less taxes taken out
however
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this again sounds really great but this
is a deferral
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this is not a forgiven or forgiveness
okay at least as of right the second and
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at least
as of how it's written and i'm going to
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show you some of the discussion that is
ongoing on this but that's really
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important to know
is that yes paychecks will probably be
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bigger if this comes into
uh into play and once this starts
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happening
but this does not mean that that money
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is definitely going to be forgiven you
may have a large payment that you have
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to make at a point in time in the future
for all of those deferred payroll taxes
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which i think as as an accountant is
just
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um armageddon uh because the the
real truth about this is that a lot of
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employees won't understand this fact
they'll think their their
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taxes are coming out as they should and
they won't realize that they're going to
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have to
potentially come up with a large amount
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of taxes to pay
the government at some point now
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let's look at this a little bit further
just to kind of see what it says
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so again it says deferring certain
payroll tax obligations at one point
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this was very much talked about
the president was very much in favor of
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a payroll tax holiday
and i think that's still what he wants
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to do but
doesn't necessarily have the authority
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to do that within this executive order
but i'll show you kind of what may um
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lead to that in the future so if you
come down here to this
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section for tax forgiveness it does say
the secretary of the treasury shall
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explore avenues including legislation to
eliminate the obligation to pay the
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taxes deferred pursuant to the
implementation of this memorandum
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so they're going to look into it but
nothing is
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guaranteed okay so let's remember this
if this happens then we're not sure if
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this is going to be an
opt-in if your employees would opt in to
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this
or if this is something that would be
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automatic either way
be aware of the fact that right now as
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it's written
it is just a deferral and it's something
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that you're going to have to pay
eventually
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anyway now what are the dates of this
deferral it goes from september 1st
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through december
31st that is really what the the rules
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around it are and it only works for
those who make
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roughly about a hundred thousand dollars
or under you can't do a payroll tax
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deferral
if you make over one hundred thousand
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dollars in your paycheck
okay so real quick i'm just going to
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talk about the other two i'm not going
to jump into them but you can go to this
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website and read them if these are
things that
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are important for you but again
there is now an executive order that
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extends the eviction
and um foreclosure moratorium that the
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cares act put into place it extends it
even
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further right now so you won't have to
worry about getting evicted those were
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about to roll off actually at the end of
august those protections so those will
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continue on
and then also the student loan relief so
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there was student loan relief that was
already in place that also was set to
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expire
uh not long from now and so that
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actually extends that student
loan relief through the end of 2020 okay
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so if you were
able to get that student loan relief
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earlier you're going to get that
extended even further all right so those
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are the main changes those are really
the things that
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this executive order does again congress
still talking about what would
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a stimulus look like so there's some
really important things that weren't
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included in these executive orders
a second round of stimulus payments
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that's still being discussed by congress
hopefully something that will be passed
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before too terribly long it doesn't talk
about any changes to the ppp
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loan program an extension of it or
allowing people to get a second one
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which is something that had been talked
about as well
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it doesn't go into anything on eidl and
there was some talk around the eidl
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advance and potentially even being able
to get the full 10 000
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of the eid l advance for given
uh so that is still something that would
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have to come in another round of
legislation if it comes at all
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and any other working capital type loans
so there's also some talk of different
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working capital loans
potentially with some forgivability
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element to it that might actually cover
more than just payroll might be a little
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broader than what ppp is
that's something that's being talked
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about as well as part of the restart
act and i talked about that in my q a
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yesterday too so make sure you subscribe
to the channel and go watch that my q a
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from august 7
talks a lot about it but that was not
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anything that was in here either so
there are a lot of things still open
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a lot of things being still being
discussed that have
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some pretty broad impact so hopefully we
will see some kind of stimulus that will
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be passed by congress
but this is what we have in the interim
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likely we'll be challenged in the courts
we don't know how all this is going to
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roll out but i wanted to at least get
this in front of you
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get you this knowledge so you could
start thinking about how this may impact
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you okay so hopefully you guys found
that helpful
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i am talking all about this here on this
youtube channel make sure to subscribe
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please and like the video if you have
questions about anything going on
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or you really just want more information
about all of this
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i am talking all about this stuff in my
financial literacy for women business
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owners facebook group
so make sure you join it even if you're
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a man we are we have plenty of men in
there right now
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but we're having some great
conversations we've got thousands of
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people
over there sharing their experiences
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with all of the stimulus we're learning
from each other so it's a great place to
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come over and
connect i'll talk to you guys soon bye
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