The American Rescue Plan Act (ARPA) that was passed last month confirms that the Families First Coronavirus Response Act (FFCRA) employer payroll tax credits for paid sick and paid family leave will be extended through September 30, 2021. Employers are not required to provide paid leave, but may do so voluntarily to take the tax credit for providing the leave. Read more about this.
Additional FFCRA provisions in the Act include:
- The 80-hour paid sick leave limits will re-set, providing a new bucket of FFCRA leave starting April 1, 2021.
- Paid sick and paid family leave credits allow for new leave reasons:
- employee is obtaining immunization (vaccination) related to COVID-19;
- employee is recovering from health complications related to the vaccine.
- A nondiscrimination rule has been added prohibiting employers from claiming the tax credits if paid leave provided to employees discriminates against certain categories of workers.
To help you accurately track data associated with these provisions, we have created earning codes within iSolved. Please contact your CSR to have them added to your account. Click here to access the chart explaining these codes.