Mobility - May 2020 - Special Covid-19 Edition - 25

MAIN STREET LENDING PROGRAM

The CARES Act also outlined the need for a loan
program through the U.S. Federal Reserve for small
to medium-size businesses. Those loans again have
favorable terms but, unlike PPP loans, must be repaid
in full. On 30 April, the Federal Reserve announced
the details of its Main Street Lending Program
(MSLP). The Federal Reserve Bank of Boston will
oversee the program, but as of 6 May, the infrastructure had not yet been put into place.
To qualify for a loan, a business must have fewer
than 15,000 employees or have had revenue of $5
billion or less in 2019. Loans under the MSLP have
terms of four years, interest rates of 2%, and no
payments due for the first year of the loan. Once the
program becomes operational, businesses will be able
to apply for new loans or increase the size of current
loans using the terms of the MSLP through approved
lenders. The Federal Reserve has released a fact sheet
with more details about the program.

PAYROLL TAX DEFERRAL UNDER PPP

Worldwide ERC® has been advocating for a payroll tax
holiday for all employers and for that relief to be available to businesses whose PPP loans were forgiven.
In its letter to congressional leaders on 20
March, Worldwide ERC® requested that Congress
include the payroll tax holiday in the CARES Act.
Suspension of the payroll tax allows employers
to hold onto their percentage of the tax, thereby
providing immediate financial relief. Worldwide
ERC® had advocated that employers not be
required to pay the tax for three months. Under the
CARES Act, Congress did suspend payment of the
employer portion of the payroll tax through the
end of the year. However, instead of eliminating
the tax as Worldwide ERC® requested, Congress
allowed a deferral of the tax. Section 2302 of
the CARES Act allows employers to defer paying the employer share of the Federal Insurance
Contributions Act (FICA) tax-half until 2021 and
half until 2022.
On a separate but related issue, in its letter of 20
April to congressional leaders, Worldwide ERC®
requested that small businesses with loans
forgiven under the PPP also be allowed to benefit from the payroll tax suspension. Currently,

A strong infrastructure
for workforce mobility
will be necessary for U.S.
and global economies
to return to their preCOVID-19 levels.
employers may not defer the tax if they have a loan
forgiven under the PPP.

STIMULUS PAYMENTS FOR EMPLOYEES

Worldwide ERC® has also advocated for immediate
financial relief for employees. Employees-both
within the workforce mobility industry and the
transferees we help relocate-have been significantly
and adversely affected by the restrictions related to
COVID-19 and need additional monetary relief. In
its letter of 20 March, Worldwide ERC® suggested
an initial period of three months, starting immediately, in which employees do not pay the payroll tax.
Worldwide ERC® also suggested as an alternative
that Congress provide individuals with a direct cash
payment, with a recommended minimum amount of
$1,000 per adult.
Under the CARES Act, Congress and the administration agreed to an economic stimulus payment of
$1,200 per adult and $500 per child, with the payments starting to phase out for individuals who earn
more than $75,000 and for married couples earning
more than $150,000.
Worldwide ERC® will continue to advocate for
additional financial assistance and other policies beneficial to our members as the relocation of employees
and their household goods returns to a more sustainable level.
Tristan North is Worldwide ERC® government affairs
adviser. He can be reached at +1 703 842 3400 or tnorth@
worldwideerc.org.

worldwideerc.org | Mobility 25


https://www.federalreserve.gov/newsevents/pressreleases/files/monetary20200430a1.pdf http://www.worldwideerc.org

Mobility - May 2020 - Special Covid-19 Edition

Table of Contents for the Digital Edition of Mobility - May 2020 - Special Covid-19 Edition

Mobility - May 2020 - Special Covid-19 Edition - Cover1
Mobility - May 2020 - Special Covid-19 Edition - Cover2
Mobility - May 2020 - Special Covid-19 Edition - 1
Mobility - May 2020 - Special Covid-19 Edition - 2
Mobility - May 2020 - Special Covid-19 Edition - 3
Mobility - May 2020 - Special Covid-19 Edition - 4
Mobility - May 2020 - Special Covid-19 Edition - 5
Mobility - May 2020 - Special Covid-19 Edition - 6
Mobility - May 2020 - Special Covid-19 Edition - 7
Mobility - May 2020 - Special Covid-19 Edition - 8
Mobility - May 2020 - Special Covid-19 Edition - 9
Mobility - May 2020 - Special Covid-19 Edition - 10
Mobility - May 2020 - Special Covid-19 Edition - 11
Mobility - May 2020 - Special Covid-19 Edition - 12
Mobility - May 2020 - Special Covid-19 Edition - 13
Mobility - May 2020 - Special Covid-19 Edition - 14
Mobility - May 2020 - Special Covid-19 Edition - 15
Mobility - May 2020 - Special Covid-19 Edition - 16
Mobility - May 2020 - Special Covid-19 Edition - 17
Mobility - May 2020 - Special Covid-19 Edition - 18
Mobility - May 2020 - Special Covid-19 Edition - 19
Mobility - May 2020 - Special Covid-19 Edition - 20
Mobility - May 2020 - Special Covid-19 Edition - 21
Mobility - May 2020 - Special Covid-19 Edition - 22
Mobility - May 2020 - Special Covid-19 Edition - 23
Mobility - May 2020 - Special Covid-19 Edition - 24
Mobility - May 2020 - Special Covid-19 Edition - 25
Mobility - May 2020 - Special Covid-19 Edition - 26
Mobility - May 2020 - Special Covid-19 Edition - 27
Mobility - May 2020 - Special Covid-19 Edition - 28
Mobility - May 2020 - Special Covid-19 Edition - 29
Mobility - May 2020 - Special Covid-19 Edition - 30
Mobility - May 2020 - Special Covid-19 Edition - 31
Mobility - May 2020 - Special Covid-19 Edition - 32
Mobility - May 2020 - Special Covid-19 Edition - 33
Mobility - May 2020 - Special Covid-19 Edition - 34
Mobility - May 2020 - Special Covid-19 Edition - 35
Mobility - May 2020 - Special Covid-19 Edition - 36
Mobility - May 2020 - Special Covid-19 Edition - 37
Mobility - May 2020 - Special Covid-19 Edition - 38
Mobility - May 2020 - Special Covid-19 Edition - 39
Mobility - May 2020 - Special Covid-19 Edition - 40
Mobility - May 2020 - Special Covid-19 Edition - 41
Mobility - May 2020 - Special Covid-19 Edition - 42
Mobility - May 2020 - Special Covid-19 Edition - 43
Mobility - May 2020 - Special Covid-19 Edition - 44
Mobility - May 2020 - Special Covid-19 Edition - 45
Mobility - May 2020 - Special Covid-19 Edition - 46
Mobility - May 2020 - Special Covid-19 Edition - Cover3
Mobility - May 2020 - Special Covid-19 Edition - Cover4
https://www.nxtbook.com/ygsreprints/WERC/mobility-march-2021
https://www.nxtbook.com/ygsreprints/WERC/mobility-february-2021
https://www.nxtbook.com/ygsreprints/WERC/mobility_122020
https://www.nxtbook.com/ygsreprints/WERC/mobility_112020
https://www.nxtbook.com/ygsreprints/WERC/mobility_102020
https://www.nxtbook.com/ygsreprints/WERC/mobility_092020
https://www.nxtbook.com/ygsreprints/WERC/mobility_082020
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https://www.nxtbook.com/ygsreprints/WERC/mobility_032020
https://www.nxtbook.com/ygsreprints/WERC/mobility_022020
https://www.nxtbook.com/ygsreprints/WERC/mobility_012020
https://www.nxtbook.com/ygsreprints/WERC/mobility_122019
https://www.nxtbook.com/ygsreprints/WERC/mobility_112019
https://www.nxtbook.com/ygsreprints/WERC/mobility_102019
https://www.nxtbook.com/ygsreprints/WERC/mobility_092019
https://www.nxtbook.com/ygsreprints/WERC/mobility_082019
https://www.nxtbook.com/ygsreprints/WERC/mobility_072019
https://www.nxtbook.com/ygsreprints/WERC/mobility_062019
https://www.nxtbook.com/ygsreprints/WERC/mobility_052019
https://www.nxtbook.com/ygsreprints/WERC/mobility_042019
https://www.nxtbook.com/ygsreprints/WERC/mobility_032019
https://www.nxtbook.com/ygsreprints/WERC/mobility_022019
https://www.nxtbook.com/ygsreprints/WERC/mobility_012019
https://www.nxtbookmedia.com