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The American Rescue Plan Act: How the New Legislation Affects Employers | Snell & Wilmer


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On March 11, 2021, President Biden signed the American Rescue Plan Act (ARPA) of 2021. Within this $1.9 trillion relief Bill, Congress extended certain previously enacted COVID-19 stimulus package provisions and expanded on previous measures, providing more relief and creating new obligations. Here, we highlight a few key provisions of the Act relevant to employers.
FFCRA Leave Tax Credits
The Families First Coronavirus Response Act (FFCRA), passed in March 2020, mandated that employers with fewer than 500 employees provide certain paid family and sick leave. With this mandate came corresponding tax credits. FFCRA expired on December 31, 2020, and covered employers were no longer required to provide such leave. Because of a second federal stimulus package passed in December 2020, employers were able to continue to receive the FFCRA tax credits if they voluntarily chose to keep providing the paid family and si ....

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