ABSTRACT

CARES Act Assistance for Employers and Employees--The Paycheck Protection Program, Employee Retention Tax Credit, and Unemployment Insurance Benefits: Assessment of Alternatives (Part 2) [Updated April 21, 2020]   [open pdf - 762KB]

From the Document: "The Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136) includes numerous provisions to assist employers and employees during the COVID-19 [coronavirus disease 2019] economic downturn. This Insight compares (1) the Small Business Administration's (SBA's) Paycheck Protection Program (PPP); (2) the Employee Retention Tax Credit (ERTC); and (3) Unemployment Insurance (UI). Firms that receive a PPP loan cannot also claim the ERTC. Additionally, when employees are retained due to a firm's receiving a PPP loan or claiming an ERTC, employees are generally ineligible for UI during the period of retention. This Insight highlights factors employers might consider in choosing which program offers them the best support. The optimal choice from the firm's perspective may not necessarily be what is optimal from their employees' perspective."

Report Number:
CRS Insight, IN11329
Author:
Publisher:
Date:
2020-04-21
Series:
Copyright:
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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