Terms and Definitions

What is the CARES Act?

Updated: May 22, 2024

CARES Act definition and meaning

The CARES Act stands for the Coronavirus Aid, Relief, and Economic Security Act, which provided economic stimulus to businesses, hospitals, and individual Americans affected by the COVID-19 pandemic. It was signed into law on March 27, 2020.

 

More about the CARES Act

Many employers felt the economic effects of the coronavirus pandemic in some shape or form. Coming in at $2.2 trillion, the CARES Act offered new loans and grants, including payroll tax credits to keep employees on the payroll, plus paycheck protection loans to help cover the average monthly payroll costs for many small businesses. It also delays payment of social security taxes to make it a little easier for small businesses to stay solvent.

Using CARES Act in a sentence

“With all the changes made to the CARES Act since it was first signed into law, payroll companies like OnPay have become even more valuable to small business owners and their accountants.”

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