AMID COVID-19 THE GOVERNOR OF PUERTO RICO APPROVES ADDITIONAL ECONOMIC RELIEFS
Credit For Private Employers Of 10% In The Cost Of Worker’s Insurance Policy
On August 15th, 2020, the Governor of Puerto Rico approved the Joint Resolution 77 of 2020, which orders the State Insurance Fund Corporation (known as CFSE; their Spanish acronym) to grant a credit to private employers of 10% in the cost of the permanent policy (worker’s insurance policy). The credit will be applicable to fiscal year 2020-2021.
The benefit is capped at $50 million and the credit is not available for the following types of policies: (i) Temporary or Eventual, (ii) Home Policy, (iii) Employer’s Policy, and (iv) Government and/or Government Instrumentality Policy.
To be a recipient of this benefit, the private employer must file its payroll statement within the period established by law and/or Administrative Order issued by the CFSE. In addition, the granting of the credit will be subject to the payment of the permanent policy within the terms established by law and/or Administrative Order.
In those cases in which the beneficiary has a payment plan with the CFSE, the plan must be up to date in order to be eligible for the benefit granted by the joint resolution. If the requirements of the payment plan are not complied with, the credit granted for the 2021 payroll declaration will be eliminated.
The CFSE, in their delegated authority as granted by the joint resolution, has yet to issue additional guidelines and requirements by Administrative Order to obtain this 10% credit.
New Economic Incentive For Hospital And Healthcare Workers
The Governor of Puerto Rico recently approved Joint Resolution 65-2020 to establish an economic incentive for hospital and healthcare workers at high risk and as first responders to the crisis due to the COVID-19.
The Legislative Assembly authorized the allocation of the economic incentive to the Emergency Fund, created from the Create the Emergency Fund Act No. 91 of June 21st, 1966, as amended. The incentive will be assigned specifically to surgical technicians, radiology technologists, computerized technology technologists, sonographers, career employees, physical therapists, respiratory therapists, respiratory therapy technicians, physical therapist assistants, nuclear medicine technologists, emergency medical technicians, paramedics and basic services in Puerto Rico, both municipal and private. The joint resolution states economic incentive will not be less than $1,000, nor greater than $2,500.
The Department of Treasury of Puerto Rico shall issue an official communication with guidelines and requirements as to how will the incentive be applied for.