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.)
- Emergency Paid Sick Leave (EPSL) Changes
- 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 https://www.congress.gov/bill/117th-congress/house-bill/1319/text
If you have any questions, please give us a call at (925) 240-2400 or contact us today.
Legal Disclaimer: The content in this article should not be construed as legal advice. California Payroll is not engaged in the practice of law, accounting, or HR counsel. This information is provided as a courtesy and is subject to change. If you have legal questions concerning your situation or the information you have obtained, you should consult with a licensed professional, CPA or Legal Advisor.
