American Rescue Plan Act Employment-related Provisions
President Joe Biden signed the American Rescue Plan Act of 2021 (ARPA) into law on March 11, 2021. The law generally provides financial relief for individuals, state and local governments, schools, businesses and for other purposes.
In addition, the law contains the following measures of special interest to employers and their employees:
A subsidy for COBRA premiums, funded through employer tax credits
Extension of employer tax credits for FFCRA employee leave voluntarily provided through Sept. 30, 2021
Expansion of employee earnings eligible for the FFCRA tax credit
Inclusion of testing and immunization as reasons for FFCRA leave
Extension of $300 increase in weekly unemployment benefits
Extension of weekly unemployment benefits for workers who otherwise wouldn’t qualify for these benefits
Expansion of subsidy for ACA premiums
Increase in DCAP contribution limits
Extension and expansion of the employee retention tax credit
Employers should review the ARPA’s provisions to identify any requirements and opportunities that apply to them. Employers should also watch for official guidance on the implementation of the law.
Sick Workers Should Stay Home When sick employees come to work, they can potentially spread their illness throughout the office. Learn why sick workers should stay home, especially during the COVID-19 pandemic, by watching the video below.