Weekly Digest – March 31 2021

The state of Florida pursued an open, non-restrictive approach to the pandemic, which appears to have been vindicated by recent stories in the media. However, as Derek Thompson of The Atlantic found when he began investigating the veracity of claims, results are neither as cataclysmic nor as positive as either side claims. While it is true that COVID-19 cases are falling in the state, they are likewise falling across the country. In terms of mortality, Florida ranks 27th in deaths per capita, worse than California and Washington D.C. Economic measures, such as the unemployment rate, consumer spending, and revenues for small businesses are also right around the median, not much better than the states that imposed restrictive measures. However, the pandemic was not as deadly in Florida as expected, given the older population and the lack of restrictions. Why that is the case is not yet clear but should be the subject for further investigation.


Economic Impact Payments (aka Stimulus Checks)

According to the IRS, if you didn’t receive your EIP payment as a direct deposit by March 24, you’ll be receiving it in the mail as either a prepaid debit card or a check. By March 24, the U.S. Treasury had made over 127 million payments, totaling $325 billion. Checks and debit cards began going out March 19 and will continue over the next weeks. The best way to track your payment is using the IRS Get My Payment tool which has been updated for third round payments.

Social Security recipients who are not required to file a tax return should be receiving their stimulus payments soon now that the Social Security Administration has sent the payment files to the U.S. Treasury.


For those who don’t need the stimulus payment to cover necessities, this article in Kiplinger has six recommendations that will pay off down the road. Saving for retirement or paying off high-interest credit cards are obvious choices. Other choices include adding the cash to a rainy day fund or donating it to charity.

Unemployment Benefits and Taxes

As part of ARPA, the first $10,200 of unemployment benefits are not subject to federal income tax for people with less than $150,000 in adjusted gross income. If you filed your 2020 tax return before the law was passed, the IRS plans to fix things on their end so that taxpayers don’t need to take any additional steps. The IRS has provided detailed instructions and a worksheet on how to calculate the exact amount that will be taxable.

Not all states follow the same rules for taxing unemployment compensation as the federal government, so Kiplinger put together a state-by-state guide on unemployment.

Paycheck Protection Program (PPP)

Last week, Congress voted to extend the PPP to May 31, giving small businesses an additional two months to submit applications. The SBA will have until June 30 to finish processing loans.

Economic Injury Disaster Loans (EIDL)

Starting April 6, the SBA is increasing the maximum loan amount from $150,000 to $500,000 for COVID-related loans under the EIDL program. The SBA will also be reaching out to certain businesses whose loans were approved prior to April 6 to offer them additional funds. These loans have a 30-year payback period at 3.75% for small businesses, 2.75% for not-for-profits. Payments are deferred until 2022.

Restaurant Revitalization Fund

Another big program of ARPA, the Restaurant Revitalization Fund, is set to roll out in early April. This fund has $28.6 billion available for grants to hard-hit restaurants, bars, and other food-service related businesses, including food trucks and caterers. The maximum grant is $5 million or $10 million for multiple locations. Grant amounts are based on the decrease in gross receipts for 2020 compared to 2019. Funds may be used for payroll, mortgage or lease payments, utilities, inventory, maintenance, PPE and cleaning supplies, and other specified expenses. As a reminder via the U.S. Chamber of Commerce, this program will be administered through the federal government’s System of Award Management (SAM). The registration process may take one to two weeks, so business owners are encouraged to get set up as soon as possible.

Tax Deadline Extended

The deadline for filing federal tax returns has been extended to May 17, and some states have announced that they will also be extending the filing deadline, as this state-by-state summary from Intuit explains.

However, individuals who make estimated tax payments will likely need to complete their tax returns by April 15 because the due date for first quarter estimates for 2021 taxes is still April 15. Estimated tax payments are frequently based on the total amount of tax due for the prior year. People who are self-employed, including independent contractors, and those with investment income or income from rentals, are among those who generally need to make estimated tax payments.


According to the FTC, COVID-related fraud has cost Americans more than $382 million. Schemes include stealing stimulus payments, fraudulent unemployment applications, fake remedies for COVID-19, and non-existent charities. Median losses are around $330 per person, but seniors have been especially vulnerable, with losses around $900 for people in their 80s. Identity theft related to unemployment benefits has also been rampant. The total amount lost is likely higher as the figures from the FTC only include fraud that has been reported to the FTC. To find out more about COVID fraud, including how to report it, visit the U.S. Justice Department fraud page.

Fraud is also impacting businesses. A report from the Association of Certified Fraud Examiners (ACFE) found that 79% of anti-fraud professionals were seeing an increase in fraud for November 2020 compared to the previous November. Remote work and layoffs make it both harder to prevent fraud and harder to detect fraud. The average fraud takes 14 months to uncover, so there may be yet more losses due to fraud. The presence of all elements of the fraud triangle – financial pressure, opportunity, and rationalization – increases the likelihood of fraud.


The casual encounters we have at work are key to developing social capital and a feeling of coherence in teams. Employees with strong workplace relationships report higher productivity, while those with weaker relationships tend to have more difficulties with thinking strategically. While the use of communications apps like Teams and Slack have increased during the pandemic, remote work has also led to an increase in the siloing of teams across a workplace, according to a report by researchers at Microsoft, who examined data from Teams. However, as workplaces around the world have returned to a hybrid or in-person model, communications between employees in different parts of the workplace increased. The researchers suggest several actions, including proactive outreach to team members, as a way to increase social capital and engagement at the workplace.


With the economy largely shut down for most of 2020, many made significant changes to how they spend money. Some changes are temporary, while others may be permanent, as this New York Times profile of several families and individuals demonstrates. A Chicago family is more intentional about their spending, focusing on reducing debt and building financial security. Several others are drawing on social security benefits sooner than expected due to the loss of their incomes.

For older workers, contracting COVID-19 is significantly more dangerous than for younger workers, which may partially explain why many older people have not rejoined the workforce, even as the economy begins to recover. Fewer people working means that economic growth may slow down, and losing older people means a loss of their knowledge base from decades on the job.



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