The American Rescue Plan (ARPA), signed into law March 11, 2021, includes changes to emergency paid sick leave and paid family leave under the Families First Coronavirus Response Act (FFCRA). Originally, set to expire December 31, 2020, the leaves have been voluntary at the employer’s discretion. Employers that chose to extend the FFCRA leave will have extended tax credits available to them under the ARPA legislation. The tax credits have been extended through September 30, 2021 for FFCRA leave provided voluntarily. Employers should work with their tax counsel to understand the advantages and disadvantages of continuing to offer the leave provisions. There are two forms of leave to be addressed under the ARPA expansion – Emergency Paid Sick Leave and Voluntary Paid Family Leave.
Contact your Cowden representative for more information on this or other compliance issues.