Publication Details

Special Alert: Feds Expand FFCRA Tax Credit Via American Rescue Plan Act and More

Mar 12, 2021 | Related Attorneys Emily J. Fox, Michael S. Kalt | Topic: Employment

While many of the original employment-related provisions of the American Rescue Plan Act were cut over the course of the last few weeks—including a $15 minimum wage and paid leave—the bill does extend the tax credit for voluntary provision of sick and family leave through September 30, 2021.

Signed into law by President Biden on March 11, 2021, the Act also adds reasons employees can qualify for the sick and family leave, including for vaccine appointments and complications due to receiving the vaccine.  What is more the previous 80-hour limit for paid sick leave will reset on April 1, 2021, meaning employers who already received a tax credit for a particular employee’s 80-hour COVID-19 sick-related leave can do so again after this date. 

Further, the Act increases the limits on the credits.  For example, it increases the limit on the credit for paid family leave to $12,000. 

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