Breaking down bill H.R. 133

On December 27, 2020, Bill H.R. 133 was signed. This measure extends and/or modifies existing COVID-19 relief programs in the United States. While IRS resources and guidance are not yet available, we’ve developed this breakdown to help provide additional clarity.

Meanwhile, we’re working hard to update Wave to include these changes so you can access them easily.

Employee Social Security Deferral

Update: Repayment is extended from April 30, 2021 to December 31, 2021.

Impact: Employees participating in this program will be able to keep more cash on hand.

Families First Coronavirus Response Act (FFCRA) Sick and Family Medical leaves

Updates:

• Credits are now available until March 31, 2021.
• This leave is no longer required to be given by the employer, but can be done voluntarily.
• Employees who’ve already used their leave do not receive more.

Impacts:

• Employers can continue accessing the available credits to assist with providing these types of leaves.
• Employers have greater flexibility over whether they use this program.

Employee Retention Credit (ERC)

Updates:

• Availability has been extended until June 30, 2021.
• The calculation for this credit has increased from 50% to 70% of qualified wages.
• The maximum eligible wage is now $10,000 per employee per quarter rather than the entire year.
• The maximum credit that can be claimed is now $7,000 per employee per quarter for a total of $14,000 per employee for 2021.
• Employers who receive Paycheck Protection Program (PPP) loans may still qualify for the ERC with respect to wages that are not paid for with forgiven PPP proceeds.
• Gross receipt reduction changed from a required 50% to 20%.
• Employers can use the prior quarter instead of a 2019 quarter to compare.

Impacts:

• Employers have the ability to retain employees for longer during difficult times.
• The amount that can be claimed has increased, providing significantly more relief.
• More businesses can now access this credit.

Payroll Protection Program (PPP)

Updates:

• Availability has been extended until March 31, 2021.
• Businesses who’ve not already had their loans forgiven may be eligible for additional expenses.
• A new, second loan with a maximum of $2,000,000 called a “PPP Second Draw” has been created for certain eligible smaller and harder-hit businesses.
• The application process for loans under $150,000 has been simplified.
• Clarification that other employer-provided group insurance benefits are included in payroll costs has been provided. This includes, group life, disability, vision, or dental insurance.
• Businesses that were not in operation on February 15, 2020 will not be eligible for an initial PPP loan or a Second Draw PPP loan.

Impacts:

• Small business owners can access payroll support for longer.
• Certain employers who took an initial loan may be eligible for additional support.
• The application process can be completed in less time with less effort.

For more resources, check out our COVID-19 Resource Hub.