The American Rescue Plan Act (ARPA), enacted March 11, 2021, includes changes to emergency paid sick leave and paid family leave under the Families First Coronavirus Response Act (FFCRA). The ARPA extended tax credits through Sept. 30, 2021, for employers that continue to provide FFCRA leave voluntarily (beyond the Dec. 31, 2020, expiration date) and made changes to tax credit eligibility for both types of FFCRA leave.
Highlights:
FFCRA Leave Remains Voluntary
ARPA did not reinstate the FFCRA employee leave mandates.
Tax Credit Extension
Employer tax credits are extended through Sept. 30, 2021, for wages, health plan expenses and Medicare tax for FFCRA leave provided voluntarily.
FFCRA Paid Leave
The FFCRA employer tax credits apply to 80 new hours of paid sick leave per employee, 12 weeks of paid family leave, and to leave for new reasons.
Click here to view and download the FFCRA ARPA HR Compliance Bulletin
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