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My experience with the CARES Act

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Re: My experience with the CARES Act

#31

Post by mehrdadn »

icelancer wrote: post #28

Government just released notification with no clear guidelines that companies who took money but didn't need it (language is heavily biased against VC-backed startups) will need to repay by May 6th for forgiveness, or be investigated and potentially fined/penalized for taking money they didn't need. This is a good idea in theory but of course the language is hopelessly vague and there are no guidelines, because that…

Not a lawyer but "need this money" seems reasonable to interpret as "you could not pay your employees if you didn't get this money". Which suggests VC-backed startups probably shouldn't have taken it and should return it.

Re: My experience with the CARES Act

#32

Post by icelancer »

mehrdadn wrote: post #31
icelancer wrote: post #28

Government just released notification with no clear guidelines that companies who took money but didn't need it (language is heavily biased against VC-backed startups) will need to repay by May 6th for forgiveness, or be investigated and potentially fined/penalized for taking money they didn't need. This is a good idea in theory but of course the language is hopelessly vague and there are no guidelines, because that…

Not a lawyer but "need this money" seems reasonable to interpret as "you could not pay your employees if you didn't get this money". Which suggests VC-backed startups probably shouldn't have taken it and should return it.

My company technically could have paid our employees if we didn't take the money, but we'd have to cancel 90% of our R&D projects, slash operations, etc etc. So that still doesn't really mean anything, unless the intent was "if you literally could not make payroll after liquidating equipment / canceling all operational expenses," which I hope was not the case.

Re: My experience with the CARES Act

#33

Post by xyst »

icelancer wrote: post #27
xyst wrote: post #19

Individuals and small business have both been shafted. There's a provision in the CARES Act which allows employers of any size to give a one time donation to employees towards their student loans in exchange for decreased tax liability. I am currently talking with my employer, but thus far they do not want to participate in this program. They initially cited the company does not apply for the program due to their com…

Can you upload / send me those pages and any research you did on it? I'd like to see if I can offer it to my employees. I've never heard of giving money to employees for student loans that also reduces the employer's tax burden. EDIT: Everything I can find just says the student loan payments from employers are now tax-free for the employee . I would love to know if there are other areas of the bill that give the busi…

SEC. 2301. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS SUBJECT TO CLOSURE DUE TO COVID–19.

see "(2) eligible employers" section"

https://www.congress.gov/bill/116th-congress/house-bill/748/...

good luck

Re: My experience with the CARES Act

#35

Post by icelancer »

xyst wrote: post #33
icelancer wrote: post #27

Earlier quoted context omitted.

Can you upload / send me those pages and any research you did on it? I'd like to see if I can offer it to my employees. I've never heard of giving money to employees for student loans that also reduces the employer's tax burden. EDIT: Everything I can find just says the student loan payments from employers are now tax-free for the employee . I would love to know if there are other areas of the bill that give the busi…

SEC. 2301. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS SUBJECT TO CLOSURE DUE TO COVID–19. see "(2) eligible employers" section" https://www.congress.gov/bill/116th-congress/house-bill/748/... good luck

I see nothing here that talks about employer tax benefits for paying for employee student loans - just a discussion of payroll tax credits and some stuff about healthcare benefits. Do you have any layperson articles or guidelines from a company like Gusto or other HR companies that give guidance on how to pay employees' student loans down and get tax deductions/credits?

Re: My experience with the CARES Act

#36

Post by mehrdadn »

icelancer wrote: post #32
mehrdadn wrote: post #31

Earlier quoted context omitted.

Not a lawyer but "need this money" seems reasonable to interpret as "you could not pay your employees if you didn't get this money". Which suggests VC-backed startups probably shouldn't have taken it and should return it.

My company technically could have paid our employees if we didn't take the money, but we'd have to cancel 90% of our R&D projects, slash operations, etc etc. So that still doesn't really mean anything, unless the intent was "if you literally could not make payroll after liquidating equipment / canceling all operational expenses," which I hope was not the case.

I hope you're fine in that case... I'd assume they meant without slashing existing work. But yeah I agree, clarity would've been nice :\

Re: My experience with the CARES Act

#37

Post by raz32dust »

dantheman wrote: post #18
jacobolus wrote: post #12

Earlier quoted context omitted.

> small business == 500 employees per location is a farce This particular definition was inserted by the Senate Committee on Small Business and Entrepreneurship, led by Marco Rubio (FL). You can also blame the other GOP Senators on that committee: Risch (ID), Paul (KY), Scott (SC), Ernst (IA), Inhofe (OK), Young (IN), Kennedy (LA), Romney (UT), Hawley (MO).

The bill was passed, everyone that voted for it is responsible.

This is reductionist. There is a crowd dynamic here. Something needed to be done quickly. A minority of senators cannot keep waiting until they get what they want. Republicans would then blame the democrats for stalling the bill. GOP has become either stupid or plain evil. I have no doubt any more after events of the last one year.

Re: My experience with the CARES Act

#40

Post by TheSpiceIsLife »

FridgeSeal wrote: post #34

Off topic: What persuades front-end developers to make their site capture backwards navigation. No TechCrunch, when I press back I should go to the previous page, not yours again.

> What persuades front-end developers

Probably their managers

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