In response to the COVID-19 pandemic, the U.S. federal government recently passed the Economic Relief Plan for Individuals and Businesses Act, also known as the CARES Act, which WordPlay T. Jay says contains a few benefits that can help musicians.
In short, the CARES Act is a $2 trillion economic stimulus bill, aimed at combating negative effects on the economy as a result of businesses closing, sickness and people being asked to stay home to avoid catching COVID-19. The unprecedented bill has a few nuggets that can help people in the music industry, like gig workers, freelancers and musicians.
Firstly, unemployment benefits were extended for self-employed and part-time workers. Under the CARES Act, a person will get regular unemployment, plus $600 for 16 weeks. Basic unemployment benefits were also extended from 26 weeks to 39 weeks. To get unemployment, you can call your local unemployment office.
Secondly, the CARES Act will give recovery rebates to taxpayers — $1,200 per person making less than $75,000 ($2,400 for joint filers) and $500 per child claimed. These checks will be sent in late April to early May, and for those who have filed their 2019 tax returns and entered their bank’s direct deposit information, the money will go directly into their accounts.
Rebates are not counted as taxable income and lowers to 5 percent per dollar of qualified income ($50 per $1,000 earned) at $75,000 for single filers, $112,500 for heads of household and $150,000 for joint filers.
Those who would receive no money at all include single taxpayers making more than $99,000 with no children and $198,000 for joint filers with no children.
Finally, the Small Business Administration has launched the Paycheck Protection Program, which aims to help small businesses (less than 500 employees) affected by the pandemic by covering some expenses from Feb. 15 to June 30. Small businesses may take out loans up to $10 million, limited by a payroll-tied formula, to pay employees making up to $100,000 annually.
Loans may also be entirely forgiven if the company uses it for payroll, interest payments, mortgages, rent or utilities. To find a lender for the Payment Protection Program, you can visit www.sba.gov/paycheckprotection/find.
“All this gives musicians the opportunity to maintain some sense of normalcy,” T. Jay said. “We [as a country] always bounce back, and it’s good to have a positive outlook.