Can I get a covid-19 stimulus check if I'm undocumented?

By Jessica Suotmaa 0

On April 15, 2020, California Governor Newsom announced that undocumented adult immigrants will receive a $500 stimulus cash payment from the State. As previously discussed, many undocumented immigrants do not qualify for the federal CARES ACT stimulus check.  Undocumented immigrants also do not qualify for unemployment insurance benefits.  As a result, California will distribute $500 dollar stimulus checks, up to $1000 per household, to undocumented Californian immigrants.  This money will come from the state’s 75 million dollar disaster fund and supplemented by a 50 million dollar donation by philanthropists for a total of 125 million dollars.

The announcement states that the fund will begin accepting applications in May 2020, and approximately 150,000 undocumented immigrants will receive the cash payment.

It was not clear to us exactly how these 500 dollar cash payments will be distributed, but with some digging, we found a list of “relief funds” for undocumented immigrants. The list is in English, Spanish, and Chinese.  According to the list, there are national relief funds and local relief funds available to undocumented immigrants who meet the listed requirements. We are not sure at this time if these funds are one of the avenues for the California relief payments, but they may be worth checking out regardless.

If you have questions about California’s guidelines and regulations on shelter-in-place, essential work, staying safe, etc., you can refer to California’s Immigrant Guide.  The guide includes information on the public charge determination, which has been translated into several languages, including Chinese, Korean, and Tagalog.

Some key notes we identified from the California immigration guide include:

If you need COVID-19 testing but don’t have private health insurance…

“Even if you are undocumented and/or don’t have insurance, you can get necessary testing and treatment for COVID-19 through Medi-Cal emergency services, even at a local clinic.”

If you have Medi-Cal, but aren’t sure what’s covered…

“Emergency services are free for enrolled Medi-Cal beneficiaries which includes COVID-19 testing, evaluation and treatment services.”

If you don’t qualify for unemployment insurance benefits because you’re undocumented but you tested positive for COVID-19, are caring for a family member who is sick, and so forth…

“Undocumented immigrants may be eligible for State Disability Insurance (SDI) and Paid Family Leave.”

If you cannot afford to pay rent due to the COVID-19 pandemic…

“Under the Executive Order, you are still required to eventually make up rental payments you miss, but you will not be evicted for nonpayment of rent until at least June.

In order to qualify for the eviction protections, you must notify your landlord in writing within 7 days of your nonpayment that you cannot pay all or part of your rent due to COVID-19. For example, if your rent is due April 1st, then by April 8th.”

How has COVID-19 affected U.S. immigration? Are you a small business owner with questions on how to manage it during the pandemic? Do you have other questions regarding COVID-19 and how we can assist you? Contact us today. We’re here to help.

COVID-19 Relief for Small Business Owners and Employers

By Jessica Suotmaa 0

With the current COVID-19 pandemic, the closing of non-essential businesses, and the fears for an upcoming recession, many small business owners are either suffering, or preparing to suffer. We, at Lum Law Group, are in the same boat. We are also a family-owned small business with few employees that, for the most part, caters to our local community.  While we are still answering calls and helping existing and potential clients, we share the same concerns as our clients, our employees, and our fellow small business owners.

In this article, we have outlined relief and resources that may assist small business owners during these difficult times. We would like to remind you that you can call us if you need assistance with vendors, landlords, or any other COVID-19 related issue. We are here to help!

Payroll: Paycheck Protection Program

Part of the CARES Act was to fund the Small Business Administration (SBA) to provide assistance to small business to continue to make payroll.  The SBA’s Paycheck Protection Program (PPP) allows businesses with fewer than 500 employees to borrow money specifically for payroll.  Less than twenty five percent of the borrowed amount can be used for other things, such as mortgage interest, rent, and utilities. You can borrow enough to cover an eight week period, which must be used within eight weeks after receiving the funds.  Loan repayments are deferred for six months.

While applications opened today (April 3, 2020), SBA announced that self-employed individuals and independent contractors will not be able to apply until April 10, 2020.

Payroll: Defer Paying Social Security

If you are self-employed, or have employees, you can defer making the social security portion of employment taxes for the time being.  This would mean a reduction of 6.2 percent tax paid on wages. The deferral allows you to pay the deferred amount over a two and a half year period, where half of it would have to be paid by December 31, 2021 and the second half by December 31, 2022.

Payroll: Keep Paying Your Employees

As part of the new economic stimulus plan, if you can prove that your business has lost fifty percent or more in profits due to coronavirus, your business can qualify for a “prize” for retaining your employees. Even if your business is closed, if you keep your employees on payroll, you can qualify for up to fifty percent of your employee’s wages.  This “prize” for keeping payroll not only helps your employees who may not be able to work from home, or may not have much to do.

As an employer, you will receive the prize in the form of a tax credit on your business tax return.

Note: Businesses that receive a SBA loan will not qualify for this tax credit.

Tax Deduction: Restaurant, Retail, Hotel

If you are a restaurant, hotel, or retail store owner, you can prepare and file amended tax returns to deduct the cost of property improvements. This deduction was supposed to be part of the 2017 tax overhaul anyway.

 

As you can tell, most of the available relief is for employers.  If you have questions about California unemployment benefits for independent contractors and self-employed individuals, please visit the EDD website. If you would like to learn more about the “stimulus check”, please read our post here.  If you have issues with vendors, landlords, business partners, etc. please contact us for how we can help you. Together, we can get through the crisis!