The American Rescue Plan Act (ARPA), enacted March 11, 2021, includes changes to emergency paid sick leave and paid family leave under the Families First Coronavirus Response Act (FFCRA). The ARPA extended tax credits through Sept. 30, 2021, for employers that continue to provide FFCRA leave voluntarily (beyond the Dec. 31, 2020, expiration date) and made changes to tax credit eligibility for both types of FFCRA leave. It continues to apply only to employers with fewer than 500 employees.
Key Changes:
- The ARPA permits the FFCRA tax credit for a new bank of emergency paid sick leave (EPSL), beginning April 1, 2021. The amount of the new leave is 80 hours per employee. Even if an employee previously used the full 80 hours (e.g., in 2020), the employee could be eligible for a new set of 80 hours of sick leave starting April 1st.