Coronavirus: What The Stimulus Package Means For Hairdressers
Stylists—Here Is Everything You Need To Know About The CARES Act
You’ve probably heard about the historic $2 trillion stimulus package Congress passed in an effort to help American workers, small businesses and industries struggling as a result of the coronavirus pandemic. So what exactly does it mean for stylists? We know it’s A LOT of info to comb through, which is why we’re breaking down everything you need to know in an easy-to-comprehend format.
What is the CARES Act?
The Coronavirus Aid, Relief, and Economic Security Act or, the CARES Act, is an economic relief package meant to give financial assistance to individuals and small businesses impacted by the coronavirus pandemic.
Stimulus Checks—Everything You Need To Know!
I heard the government is mailing checks, is that true?
Yes, under the CARES Act, eligible tax-payers will receive one-time, direct payments from the federal government.
Who is eligible for a check?
Any taxpayer that has filed a 2018 and/or 2019 tax return, including booth renters, independent contractors and self-employed stylists.
How much are the checks?
That depends. The amount a family can expect varies depending on size and adjusted gross income. We broke down the basic information below:
- Filed as “Single”:
- Making $75,000 or less annually, would receive a payment of $1,200.
- Making $75,000-$99,000 annually, would receive reduced amounts on a sliding scale.
- Making over $99,001 will not receive a check.
- Filed as “Head of Household”:
- Making $112,500 or less annually, would receive a payment of $1,200.
- Making $112,500-$136,500 annually, would receive reduced amounts on a sliding scale.
- Making over $136,501 will not receive a check.
- Filed as “Married”:
- Making a combined income of $150,000 or less annually, would receive a payment of $2,400.
- Making a combined income of $150,000-$198,000 annually, would receive reduced amounts on a sliding scale.
- Making combined income over $198,001 will not receive a check.
Is there a credit for children?
Yes! Parents should expect an extra $500 for every child under 17 that is claimed as a dependent.
Do I have to pay taxes on the relief checks?
No, you do not. However, if your income for 2020 is higher than it was in 2018, you may be required to pay back a portion of your check.
How do I apply?
No application is necessary, the IRS will deposit funds directly into your bank account if you use direct deposit when filing your taxes. If you did not use direct deposit, the government will be sending you a check to your address.
This is big news for hairdressers! Under the CARES Act, self-employed workers and independent contractors (including independent salon owners) are eligible to receive unemployment benefits including the boosted unemployment benefit. Read all about it below.
If my salon isn’t mandated to close, but we are closed anyway, can I still receive benefits?
Yes, as long as you are unable to work, you can apply for unemployment.
How much will I get in unemployment?
This will depend on your state and also your previous income. But, under the Federal Pandemic Unemployment Compensation, workers will be eligible to receive an extra $600 per week to their unemployment.
For example: the maximum unemployment benefits in the state of California is $450/week.
$450 (regular unemployment) + $600 (boosted unemployment) = $1,050/week in unemployment benefits.
Where do I sign up for unemployment? Do I need to sign up twice for all of the benefits?
No, you do need to sign up twice. The CARES Act allows state unemployment agencies to work with the boosted federal government benefits to help streamline the application process. Visit your state unemployment agency website and sign up for benefits as you normally would, federal benefits will automatically be added to your claim.
How long can I get unemployment for?
Under the Pandemic Unemployment Emergency Compensation program in the CARES Act, an additional 13 weeks of unemployment benefits are provided. We suggest checking with your state to see how many weeks they provide in unemployment benefits.