On March 11, 2021, President Joseph Biden signed The American Rescue Plan Act, which provides $1.9 trillion in funds for individuals and businesses in response to the COVID-19 pandemic. For employers, here are the key provisions to be aware of:
FFCRA tax credit extension
Since January 2021, employers subject to the Families First Coronavirus Response Act (FFCRA) have not been required to provide FFCRA leave to employees; however, employers who opt to voluntarily provide FFCRA leave to employees can obtain tax credits to offset certain costs associated with providing the leave. The American Rescue Plan Act does not reinstate the mandate to provide leave or require employers to provide any additional leave, but extends the tax credits for qualifying family leave and sick leave wages that an employer voluntarily pays between April 1, 2021 and Sept. 30, 2021. The measure provides a new yearly allotment of up to 80 hours per employee of qualifying paid sick leave available for 2021 tax credits. Again, this does not obligate an employer to provide additional leave, but allows employers to offer a new bucket of leave to employees if they so choose.
Continue Reading The American Rescue Plan Act: What employers need to know