The American Rescue Plan Act (ARPA), signed by President Biden on March 11, 2021, extended and expanded many of the tax and economic incentives that Congress has passed to address the continuing economic impact on employers and their employees from the Coronavirus pandemic. Among the many provisions and grants, the ARPA:
- Enhanced and extended paid sick and family leave credits to cover employee absences caused by Covid-related illnesses.
- Extended the Employee Retention Credit (ERC) through the end of the 2021 and made the credit available to employers that started their operations after February 15, 2020. The ERC is available to Employers who retained payrolls despite enduring a 2021 quarterly revenue decline of more than 20% from comparable 2019 quarters, or more than 50% comparing 2020 quarters to 2019, or whose operations have been impacted by Covid related shutdowns.
- Extended an additional unemployment benefit of $300 per week through September 6, 2021.
- Allocated more Paycheck Protection Program funding and extended eligibility for the program to more “nonprofit” entities.
- Authorized grants for struggling restaurants to be used for costs essential to maintaining the business. Also, live venue operators, promoters, theatrical producers, live performing arts organization operators, museum operators, motion picture theatre operators or talent representatives who demonstrate a 25% reduction in revenues can qualify.
- Enhanced employee benefits for Dependent Care Assistance and provided employer credits to offset the cost COBRA insurance provided to terminated employees.
Please contact us to learn more about these valuable incentives, or click here to read more details.