Updates to FFCRA: How the American Rescue Plan Act Impacts Leave Related to COVID-19

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We are committed to helping each of our clients succeed. For this reason our employees attend specialized classes and conferences to keep up-to-date with the latest audit, accounting, and tax requirements.

The American Rescue Plan Act, signed into law on March 11th, 2021, does not require employers to continue offering Families First Coronavirus Response Act (FFCRA) leave. However, the Act does extend the payroll tax credit provisions for employers who offer FFCRA leave through September 30, 2021 and expanded the reasons for FFCRA leave for those who choose to offer it.

Key FFCRA-Related Provisions Employers Should Be Aware Of:

  • Providing emergency paid sick leave or expanded family medical leave is now optional.
  • Payroll tax credits can be claimed to include leave taken when an employee is getting their COVID-19 vaccine, recovering from an illness related to the COVID-19 vaccine, and awaiting the results of a COVID-19 test or diagnosis.
  • The payroll tax credit has been extended through September 30th, 2021 for those employers who voluntarily decide to provide FFCRA leave to their employees. 
  • The 10-day limit for emergency paid sick leave resets starting on April 1st, 2021. Employers who continue to provide emergency paid sick leave can claim a payroll tax credit to offset up to 10 days of wages. This is effective from April 1st, 2021 to September 30th, 2021. This can still be applied for employees who previously exhausted their emergency paid sick leave allotment.

Our team is committed to staying on top of the latest news related to COVID-19. If you have any questions about how these issues affect you and your business, please contact us.