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Breaking down bill H.R. 133

By Joe Crawford
Reviewed by
January 11, 2021
5 minutes read

On December 27, 2020, Bill H.R. 133 was signed. This measure extends and/or modifies existing COVID-19 relief programs in the United States. While IRS resources and guidance are not yet available, we’ve developed this breakdown to help provide additional clarity.

Meanwhile, we’re working hard to update Wave to include these changes so you can access them easily.

Employee Social Security Deferral

Update: Repayment is extended from April 30, 2021 to December 31, 2021.

Impact: Employees participating in this program will be able to keep more cash on hand.

Families First Coronavirus Response Act (FFCRA) Sick and Family Medical leaves

Updates:

  • Credits are now available until March 31, 2021.
  • This leave is no longer required to be given by the employer, but can be done voluntarily.
  • Employees who’ve already used their leave do not receive more.

Impacts:

  • Employers can continue accessing the available credits to assist with providing these types of leaves.
  • Employers have greater flexibility over whether they use this program.

Employee Retention Credit (ERC)

Updates:

  • Availability has been extended until June 30, 2021.
  • The calculation for this credit has increased from 50% to 70% of qualified wages.
  • The maximum eligible wage is now $10,000 per employee per quarter rather than the entire year.
  • The maximum credit that can be claimed is now $7,000 per employee per quarter for a total of $14,000 per employee for 2021.
  • Employers who receive Paycheck Protection Program (PPP) loans may still qualify for the ERC with respect to wages that are not paid for with forgiven PPP proceeds.
  • Gross receipt reduction changed from a required 50% to 20%.
  • Employers can use the prior quarter instead of a 2019 quarter to compare.

Impacts:

  • Employers have the ability to retain employees for longer during difficult times.
  • The amount that can be claimed has increased, providing significantly more relief.
  • More businesses can now access this credit.

Payroll Protection Program (PPP)

Updates:

  • Availability has been extended until March 31, 2021.
  • Businesses who’ve not already had their loans forgiven may be eligible for additional expenses.
  • A new, second loan with a maximum of $2,000,000 called a “PPP Second Draw” has been created for certain eligible smaller and harder-hit businesses.
  • The application process for loans under $150,000 has been simplified.
  • Clarification that other employer-provided group insurance benefits are included in payroll costs has been provided. This includes, group life, disability, vision, or dental insurance.
  • Businesses that were not in operation on February 15, 2020 will not be eligible for an initial PPP loan or a Second Draw PPP loan.

Impacts:

  • Small business owners can access payroll support for longer.
  • Certain employers who took an initial loan may be eligible for additional support.
  • The application process can be completed in less time with less effort.

For more resources, check out our COVID-19 Resource Hub.

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Add your logo and brand colors
Automate late payment reminders
with online payments
Wave mobile app
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Dashboard and reports
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Add users
Live-person chat and email support
with any paid add-on
Digitally capture unlimited receipts
additional fee
Payroll
additional fee
additional fee
Hire a bookkeeper
additional fee
additional fee
Option to accept online payments
Starting at
2.9% + $0.60
per credit card transaction
Starting at
2.9% + $0*
per credit card transaction
for first 10 transactions/mo
Unlimited invoices, estimates, bills
Add your logo and brand colors
Automate late payment reminders
with online payments
Wave mobile app
Unlimited bookkeeping records
Dashboard and reports
Auto-import transactions
Auto-merge transactions
Auto-categorize transactions
Add users
Live-person chat and email support
with any paid add-on
Digitally capture unlimited receipts
additional fee
Payroll
additional fee
additional fee
Hire a bookkeeper
additional fee
additional fee
starter
Plan
$0
Legacy businesses
New businesses
pro
Plan
$16USD or
$20CAD/mo
starter
Plan
$0
Legacy businesses
New businesses
pro
Plan
$16USD or
$20CAD/mo
Invoicing + payments
Option to accept online payments
(and create unique links with checkouts)
Starting at
2.9% + $0.60
per credit card transaction
Starting at
2.9% + $0.60
per credit card transaction
Starting at
2.9% + $0*
per credit card transaction
for first 10 transactions/mo

Send invoices, estimates, and other docs:

  • via links or PDFs
  • automatically, via Wave
with online payments
with online payments
Automate late payment reminders
with online payments
with online payments
Add your logo and brand colors
Remove Wave branding from footers
Add attachments to invoices and estimates (NEW!)
Create reusable message templates (NEW!)
Invoice and estimate in the mobile app
Accounting
Unlimited bookkeeping records
Auto-import bank transactions
Auto-merge and categorize transactions
Add users to your business
businesses already auto-importing bank transactions and/or that already have users added to their businesses as of May 1, 2024
Digitally capture unlimited receipts
with receipts add-on
with receipts add-on
Manage accounting transactions in the mobile app and sync with desktop (NEW!)
with receipts add-on
with receipts add-on
Other Wave features
Dashboard and reports
Live-person chat + email support
with any optional add-on
with any optional add-on
Optional add-ons
Receipts
nothing changes
additional fee
included
Payroll
nothing changes
additional fee
additional fee
Advisors
nothing changes
additional fee
additional fee
Invoicing + payments
Option to accept online payments
(and create unique links with checkouts)
Starting at
2.9% + $0.60
per credit card transaction
Starting at
2.9% + $0.60
per credit card transaction
Starting at
2.9% + $0*
per credit card transaction for first 10 transactions/mo
Send invoices, estimates, and other docs via links or PDFs
Send invoices, estimates, and other docs automatically, via Wave
with online payments
with online payments
Automate late payment reminders
with online payments
with online payments
Add your logo and brand colors
Remove Wave branding from footers
Add attachments to invoices and estimates (NEW!)
Create reusable message templates (coming NEW!)
Invoice and estimate in the mobile app
Accounting
Unlimited bookkeeping records
Auto-import, -merge, and -categorize bank transactions
businesses already auto-importing bank transactions and/or that already have users added to their businesses as of May 1, 2024
Add users to your business
businesses already auto-importing bank transactions and/or that already have users added to their businesses as of May 1, 2024
Digitally capture unlimited receipts
with receipts add-on
with receipts add-on
Manage accounting transactions in the mobile app and sync with desktop (NEW!)
with receipts add-on
with receipts add-on
Other Wave features
Dashboard and reports
Live-person chat + email support
with any optional add-on
with any optional add-on
Optional add-ons
Receipts
nothing changes
additional fee
included
Payroll
nothing changes
additional fee
additional fee
Advisors
nothing changes
additional fee
additional fee

*While subscribed to Wave’s Pro Plan, get 2.9% + $0 (Visa, Mastercard, Discover) and 3.4% + $0 (Amex) per transaction for the first 10 transactions of each month of your subscription, then 2.9% + $0.60 (Visa, Mastercard, Discover) and 3.4% + $0.60 (Amex) per transaction. Discover processing is only available to US customers. See full terms and conditions for the US and Canada. See Wave’s Terms of Service for more information.

By Joe Crawford

The information and tips shared on this blog are meant to be used as learning and personal development tools as you launch, run and grow your business. While a good place to start, these articles should not take the place of personalized advice from professionals. As our lawyers would say: “All content on Wave’s blog is intended for informational purposes only. It should not be considered legal or financial advice.” Additionally, Wave is the legal copyright holder of all materials on the blog, and others cannot re-use or publish it without our written consent.

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