Baker Signs Bill Addressing Forgiven PPP Loans, Unemployment Income, Unemployment Insurance Rates and More

April 2, 2021

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.



For more information, Click Here


This material is generic in nature. Before relying on the material in any important matter, users should note date of publication and carefully evaluate its accuracy, currency, completeness, and relevance for their purposes, and should obtain any appropriate professional advice relevant to their particular circumstances.

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