CARES Act – Overview and Explanation
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was a federal stimulus package designed to support individuals, businesses, and healthcare providers impacted by the COVID-19 crisis. This legislation was enacted on March 27, 2020.
Understanding the CARES Act
The economic challenges brought on by the COVID-19 pandemic had a widespread impact, especially on employers. To mitigate financial strain, the CARES Act allocated $2.2 trillion in relief efforts. The package introduced several forms of assistance, including tax credits for payroll, forgivable loans through the Paycheck Protection Program (PPP) to help cover wage expenses, and options to defer employer Social Security tax payments. These measures were aimed at helping small businesses maintain operations and keep staff employed during uncertain times.