What The Economic Stimulus Package Means For Hospitality Industry Workers

By Neat Pour Staff |

In the early hours of Wednesday (3.25) morning, the Senate reached a compromise on a two trillion dollar economic stimulus package, a historically gargantuan injection of direct payments, loans, and bailout money into the economy. The legislation promises to put money in the hands of every American (as well as some big corporations).

However, when it comes to payroll matters, the service industry often feels a little different. Factors like the sub minimum wage and tipping eve make taxes a bit more complicated. So, what does this stimulus package mean for workers in the industry?

We turned to our favorite HR expert, Dr. Mathew Zingoni, Associate Professor of Management at the University of New Orleans, for some answers.

Keeping in mind that Congress has not released most recent draft of the legislation to public, here’s what we know now.

Direct Payments

The legislation promises a direct payment of $1200 to each worker reporting less than $75k annually; the checks getting progressively smaller for individuals earning above that threshold until $99k a year is hit at which point there is no compensation. An additional $500 per child is included in the plan.

When Do I Get My Check?

Treasury Secretary Steven Mnuchin promised to get checks out within two week’s of the bill’s passage. Unfortunately, several IRS officials have publicly refuted that claim. While an exact timeframe is still unknown, we do have some hints available.

Checks to Americans are not completely unprecedented. In 2001, President George W. Bush issued ‘refund’ checks to most taxpayers; the IRS took about six weeks to get these out. After 2008 economic collapse, Bush once again ordered the IRS to issue refunds to citizens; this time, it took about three months for these to reach mailboxes.

In the latter cases, taxpayers who paid taxes online receive their money much quicker and through direct deposit, but those who paid taxes by mail were forced to wait several weeks longer for snail mail refund checks.

File Your Taxes

Elected officials noted provisions to help those who did not make enough to file taxes. However, this section of the bill is fairly grey. The expert suggested not banking (literally!) on it. Instead, file your taxes now if you have not already.

“The big thing is make sure you have filed your back taxes. There is going to be connection to income and you want to be in the IRS’ system for at least this year and probably last year also,” advised Zingoni.

Unemployment Benefits

Senate Minority Leader Chuck Schumer lobbied hard to ensure the inclusion of enhanced unemployment benefits in the legislation.

According to Schumer, the bill calls for a federal payment of $600 a week on top of the state issued payments collected by anyone filing unemployment claims. In addition, the package extends unemployment eligibility four months.

Zingoni noted that one should remember that base unemployment payments vary from state to state. More significantly, most hospitality industry employees do not qualify for the maximum payments from their states; it’s currently unclear how/if that scale will factor into the federal bill as well.

Gig Workers

If you’re a ‘gig worker’ or self employed, like a bar consultant or many catering employees, you are normally not eligible for unemployment benefits. However, according to Schumer, the stimulus package contains a clause also extending benefits to these groups. No additional details have been released as to how this will work.

Liked it? Take a second to support Neat Pour on Patreon!
Share

Read Next

England Announces Hospitality Specific Stimulus Package

The US hospitality industry is in dire straits and lacking governmental support. Yet, across the pond, the English cousins took some preliminary steps to bolster their reopened bars and pubs. On Wednesday (7.08), Chancellor Rishi Sunak unveiled a stimulus plan for the service industry that included incentives for diners and employers alike.

By Neat Pour Staff

For Some Reason, Celeb Booze Brands Now Have Their Own App

Think celebrity sports and brands jumped the shark when Elon Musk started threatening his own tequila? Well, then you haven’t heard about GrapeStars. Launched in the early days of the quarantine, GrapeStars is an app that aims to “disrupt” the spirits markets by making celerity brands easier to find. Oh. And, if you think that’s a good idea, you can now invest in the brand through crowd-sourcing.

By Neat Pour Staff

RTD Roundup: Onda, Five Drinks, Tip Top

Ready-To-Drink (RTD) beverages are almost as popular as Zoom during the pandemic. As Nielsen reports all time highs for the sector, liquor stores’ shelves—and websites—are filling up with canned cocktails. Neat Pour did some samplin’ of three emerging brands: Five Drinks, Onda, and Tip Top Cocktails. Here’s the scoop.

By Neat Pour Staff