What Biden's $1.9 trillion relief bill contains for employers

President Joe Biden signed a sweeping $1.9 trillion COVID-19 economic relief package, known as the American Rescue Plan Act of 2021 (ARPA), into law in early March. The stimulus bill touches on myriad different areas, e.g., providing direct $1,400 payments to individuals, increasing access to health care, assisting K-12 schools, and improving national infrastructure. The Act contains several provisions of note to employers.

Extension of tax credits for voluntarily providing EPSL, EFMLA leave

As you probably know, the Families First Coronavirus Response Act (FFCRA), which required certain employers to provide COVID-19-related Emergency Paid Sick Leave (EPSL) and Expanded Family and Medical Leave Act (EFMLA) leave to employees, expired on December 31, 2020. Given the ongoing nature of the pandemic, however, former President Donald Trump signed the 2021 Consolidated Appropriations Act (CAA), which permitted employers to choose whether to continue providing paid leave on a voluntary basis.

Under the CAA, if an employer elected to continue providing EPSL leave, it would be eligible for payroll tax credits. Before the ARPA's enactment, the option was available only until March 31, 2021. The new legislation extends the tax credits' availability for employers that voluntarily provide sick and family leave through September 30, 2021.