The American Rescue Plan Act (ARPA)

The American Rescue Plan Act (ARPA) 2560 1440 Balance Point Team

BPHR’s Director Lisa Salcido, SPHR, SHRM-SCP provides answers to your pressing HR questions.

Question: As an employer, what do I need to know about the COVID relief bill that was passed March 2021?

Answer: The American Rescue Plan Act (or ARPA), signed by President Biden, is intended to provide continued economic relief to individuals, businesses, and state and local governments. This relief bill was one of Biden’s first priorities as president and just the start of what employers can expect from the new president.

This new legislation 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.

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 our clients accurately track data associated with these provisions, we have created earning codes within our HCM platform. Clients should contact their CSR to have them added to their account. Click here to access a chart explaining these codes.

Satisfy Compliance, Focus on Strategy

It has been one year since the start of the pandemic, yet Balance Point remains committed to keeping you informed and empowered. Check our blog often as we will publish updates and changes as we are made aware.

To learn more about BPHR, our HR consulting service schedule a consultation.

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