In addition to paid leave for absences originally covered by FFCRA, this tax credit will also be available for sick leave wages paid to an employee (1) seeking or waiting for the results of a COVID-19 diagnosis because of exposure to COVID-19 or an employer requested COVID-19 test, (2) receiving a vaccination for COVID-19, and (3) recovering from a medically diagnosed injury or illness resulting from vaccination for COVID-19. The daily $200 cap on qualified wages remains the same, but the overall cap on tax credits employers can claim for an individual has increased from $10,000 to $12,000.
These new provisions will be in effect starting April 1, 2021, and sunset on September 30, 2021.
Paycheck Protection Program: Congress has appropriated a relatively modest amount of $7.25 billion for the Paycheck Protection Program, and has decided not to extend the March 31, 2021, deadline to apply for assistance. In lieu of more robust PPP funding, the ARPA has substantially expanded other business assistance programs. For example, the ARPA appropriates an additional $15 billion for the Small Business Administration to assist struggling businesses, more than $25 billion specifically for the restaurant industry, and $1.25 billion for the Shuttered Venue Operators Grant.
Employee Retention Tax Credit: The Employee Retention Tax Credit that provides a refundable tax credit for up to 70% of qualified wages is extended from July 1, 2021, to December 31, 2021. Additionally, the ARPA makes additional changes effective June 30, 2021, by allowing startup businesses with gross receipts of up to $1 million to claim a tax credit limited to $50,000 each quarter. Severely financially distressed employers can claim a larger tax credit and small employers may receive an advance of their tax credit.
Unemployment Insurance: The ARPA extends the “add-on” $300 weekly federal unemployment funding and other unemployment insurance benefits set to expire on March 14, 2021. These benefits will now expire on September 6, 2021. Governmental and non-profit entities (including many higher education institutions) will also receive a more favorable reimbursement rate for unemployment insurance benefits. Between March 31, 2021, and September 6, 2021, they will receive reimbursements for 75% rather than 50% of the covered unemployment insurance benefits.
For questions relating to the American Rescue Plan Act of 2021 or your policies related to COVID-19, contact Josh Goldberg at 503-276-2107 or via email at firstname.lastname@example.org.
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Las Alertas electrónicas son escritas por abogados de Barran Liebman para sus clientes y amigos. Las Alertas no son proveídas como asesoramiento legal, sino solo como anuncios de leyes de empleo, leyes laborales y beneficios de empleo. Si esto ha sido remetido a usted y quisieras empezar a recibir las Alertas directamente, por favor mándanos un correo electrónico o llama a Traci Ray al 503-276-2115. Derechos de autor ©2021 por Barran Liebman LLP.