April 09, 2020
What Your Practice’s Employees Should Know About the CARES Act
Things are likely going to be TOUGH for your team. Among all their concerns related the current global pandemic, perhaps the most immediate one is money! To that end, I’d recommend you have a team meeting and address the paycheck issue right up front.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act introduces two assistance programs that are designed to keep whole, from a financial perspective, employees who are furloughed, terminated or working diminished hours.
If your practice has closed because of this crisis (here are some financial first steps that you, as a small business owner, can take in response), your team should receive the following benefits.
Recovery rebate: Most taxpayers will receive a cash payment from the U.S. Treasury Department of approximately $1,200 each (roughly $2,400 per couple).
Increased unemployment benefits: The CARES Act added $600 per week to the regular state unemployment benefit. For many folks, this may be more than their current pay. Using Indiana as an example, this additional $600 weekly payment will result in a total weekly benefit of $990 (an annual rate of $51,480).
Whenever possible, I would strongly discourage your team from taking out 401(k) loans or a second mortgage on their home. More debt to make ends meet rarely is a workable solution in the long run.
Finally, stress to your team that when this health emergency is over, you are committed to putting them back to work just as soon as possible!
While today’s topic centers on the CARES Act and your employees, here’s a look at a chart we put together that quickly compares all the relief package’s various programs for business owners.
Still have questions? Please reach out to any of Buckingham’s Practice Integration Advisors. We are here to help!
This commentary originally appeared April 9 on DentalTown.com
By clicking on any of the links above, you acknowledge that they are solely for your convenience, and do not necessarily imply any affiliations, sponsorships, endorsements or representations whatsoever by us regarding third-party Web sites. We are not responsible for the content, availability or privacy policies of these sites, and shall not be responsible or liable for any information, opinions, advice, products or services available on or through them.
The opinions expressed by featured authors are their own and may not accurately reflect those of Buckingham Strategic Wealth®. This article is for general information only and is not intended to serve as specific financial, accounting or tax advice.
© 2020 Buckingham Strategic Wealth®