America Rescue Plan Act of 2021

On March 11, 2021, President Biden signed into law H.R. 1319, also known as the American Rescue Plan Act, which provides approximately $1.9 trillion in further supports and stimulus.

Here are some important parts of the Act:

  • Extension of Tax Credits on Families First Coronavirus Response Act (FFCRA) Paid Sick and Family Leave Tax Credit
    • Emergency Paid Sick Leave (EPSL) Changes
      Here are the key changes to EPSL, in effect from April 1 through September 30, 2021:
    • Employees can take EPSL to get the COVID vaccine and to recover from any related side effects.
    • Employees can take EPSL when seeking or waiting for a COVID-19 diagnosis or test result if they’ve been exposed to COVID-19 or if the employer has asked them to get a diagnosis or test. (Previously, time spent waiting on test results was not necessarily covered, which seemed like an oversight.)
    • Employees will be eligible for a new bank of leave on April 1. Full-time employees are entitled to 80 hours while part-time employees are entitled to a prorated amount. Unused hours from before April 1 will not carry over.
    • Employers can’t provide EPSL in a manner that favors highly compensated employees or full-time employees or that discriminates based on how long employees have worked for the employer. (Be aware that any inconsistencies in the granting of leave could potentially lead to a discrimination claim.)
  • Employee Retention Credit Extended through 2021
  • Paycheck Protection Program (PPP) Expansion
  • Expansion of Unemployment Insurance Benefits
  • COBRA Health Coverage Subsidy
  • Recovery Rebates to Individuals
  • Earned Income Credit and Child Tax Credit Improvements for 2021
  • Refundability and Enhancement of Child and Dependent Care Tax Credit
  • Grants to Impacted Small Business (like restaurants and shuttered venues)
  • Targeted Economic Injury Disaster Loan (EIDL) Advance

For full details on the America Rescue Plan Act, see

If you have any questions, please give us a call at (925) 240-2400 or contact us today.


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