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Stimulus Check Update and Stimulus Package Update September 2, 2020

Stimulus Check Update

Stimulus Check Update and Stimulus Package Update September 2, 2020


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Quick Overview

  • President Trump issued an order that stops evictions for the rest of the year.
  • President Trump’s executive order on the payroll tax cut will be implemented for 1.3 million federal employees in mid-September.
  • For these 1.3 million federal employees, the government will stop taking payroll taxes from your paycheck for the rest of the year and then they’re going to double the amount of those payroll taxes they take from your paycheck next year.
  • Treasury Secretary Steven Mnuchin testified before Congress and said that a bipartisan agreement should be reached for the next stimulus package.
  • Covid-19 cases are back on the rise and Covid-19 cases in children have increased 17% in the past two weeks in the United States.

CARES Act Updates

In the last stimulus package, the CARES Act, renters were protected from being evicted. That protection expired at the end of July. President Trump issued an executive order on August 8th to assist renters. That executive order did not stop evictions. The Trump Administration issued an order yesterday that stops landlords from evicting tenants for the rest of the year.

You are protected from eviction if you are an individual that makes under $99,000 a year or if you are a married couple making under $198,000 a year in 2020. In order to qualify, you must sign a statement saying that you cannot pay rent due to a Covid-19 related financial hardship. You must then provide this signed declaration to your landlord.

You will still owe rent, it would just accumulate, but you will be protected from eviction for the remainder of this year.

For landlords that disobey this order, criminal charges will be imposed of up to $100,000 or one year in jail. The White House Administration is using federal public health laws, through the CDC, in order to grant this eviction protection.

The CDC is saying eviction protection is necessary to stop the spread of Covid-19 because if people become homeless, it will increase the spread of Covid-19 and jeopardize the public health and safety.

It is estimated that 20 million Americans were at risk of being evicted by the end of September.

This was very welcome news by housing advocates and renters. However, the landlords will be suffering because the mortgage payments, property taxes, and maintenance expenses won’t stop for them on their properties.

President Trump’s Executive Order on the Payroll Tax Deferral

The government is the largest employer in the United States. The payroll tax deferral will be implemented for 1.3 million federal workers in mid-September.

If you’re in this category, your paychecks from mid-September until the end of the year will be bigger because they’re going to stop taking out social security taxes from your paycheck. However, they’re going to double the amount of social security taxes taken out of your paycheck from January through April 30th of 2021 in order to repay it back.

So be prepared for your paychecks to be smaller next year from January through April.

The private sector is hesitant to implement this payroll tax deferral because they need to design a system to allow employees to opt out of the program, which is technically challenging from a payroll administration standpoint.

Stimulus Package News

One of the two negotiators for the stimulus package, Treasury Secretary Steven Mnuchin, testified before Congress yesterday on the stimulus package.

Mnuchin said that more stimulus was necessary to combat the effects of the coronavirus pandemic. Mnuchin said that he is ready to sit down with Democratic leaders to resume negotiations.

Mnuchin’s quote was

“Let me say I very much agree with you and those other experts that more fiscal response is needed. What is most important is that we deliver some relief quickly”.

The Democrats want to spend $2.2 trillion. The Republican’s budget is $1.3 trillion. Mnuchin said yesterday that the Republicans are willing to go as high as $1.5 trillion. Therefore, the gap is narrowing, however, Pelosi remains steadfast at $2.2 trillion.

Covid-19 News

The American Academy of Pediatrics and the Children’s Hospital Association published a report stating that Covid-19 cases in US children have increased by 17% over the past two weeks. Their study was conducted by analyzing how many cases of children were reported per 100,000 in the population.

The United States recorded 43,253 new cases and 1,067 fatalities on Tuesday, this is according to the John Hopkins University.

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