Baker Signs Bill Addressing Forgiven PPP Loans, Unemployment Income, Unemployment Insurance Rates and More
The much-anticipated COVID-19 Relief bill is signed into law
On April 1, 2021, Governor Baker signed a COVID-19 relief bill into law.
For Businesses:
- The new legislation makes the Massachusetts tax treatment conform to the federal tax treatment of
- PPP Loans forgiven in 2020
- EIDL Advance grants received in 2020
- Small Business Administration (SBA) debt relief payments made in 2020;
- Freezes the unemployment insurance rate for 2021 and 2022;
- Provides a $75million COVID-19 emergency paid sick time program. (Requiring employers to pay about one week's sick leave for employees who are infected with COVID-19, must quarantine due to the virus, is getting vaccinated, or is caring for a family member in one of these situations);
- Authorizes the state to issue bonds to repay advances from the federal unemployment account and help pay benefits and related expenses.
For Individuals:
The bill includes forgiveness for up to $10,200 in unemployment income for Massachusetts residents whose household incomes are at or below the 200% federal poverty level. (Note that this threshold is different from the federal guidance.).
“This legislation takes a thoughtful and comprehensive approach in delivering critical relief to facilitate economic recovery for the people of Massachusetts,” Baker said in a letter to lawmakers.
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