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The American Rescue Plan Act (ARPA) made some changes to emergency sick leave and paid family leave under the Families First Coronavirus Response Act (FFCRA). The tax credits were extended through September 30, 2021 by the ARPA for those employers who provide FFCRA leave voluntarily and made tax credit eligibility changes for both types of FFCRA leave.
Voluntary Emergency Paid Sick Leave
The FFCRA employer tax credits apply to 80 new hours of paid sick leave per employee (starting April 1, 2021). The credit also applies to 12 weeks of paid family leave and to leave for new reasons.
Voluntary Paid Family Leave
The FFCRA family leave tax credit has been expanded by the ARPA to apply to family leave taken for:
- Reasons related to COVID-19 vaccination and testing
- FFCRA emergency paid sick leave reasons
The ARPA eliminates the requirement that the first two weeks of family leave be unpaid. It also increases the family leave wages eligible for the tax credit from $10,000 to $12,000 per employee.
Employers who provide FFCA leave to their employees may want to become familiar with the ARPA changes to ensure eligibility for the tax credits provided by the law.
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This blog is intended to be a compilation of information and resources pulled from federal, state, and local agencies. This is not intended to be legal advice. For up to the minute information and guidance on COVID-19, please follow the guidelines of the Centers for Disease Control and Prevention (CDC) and your local health organizations.
National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.
