As you may be aware President Biden signed into effect the American Rescue Plan. Below are the two critical points of how this plan may affect your company the most.
FFCRA has expired now, ARPA extends that incentive through September 30, 2021. To be clear, ARPA does not require employers to provide paid leave under FFCRA-type circumstances. Rather, it provides an incentive for employers to do so voluntarily . Thus, when an employer provides paid leave, it is eligible to take a tax credit for the amounts paid to employees.
The American Rescue Plan provides a 100% federal continuation health coverage (COBRA) subsidy through September 1. Therefore you will receive credit for covering your employee’s health benefits.
Below is a link to the IRS website that may answer any other questions you may have.
