Changes to FFCRA Leave in the American Rescue Plan

From: Benefits

Changes to FFCRA Leave in the American Rescue Plan

LEGAL UPDATE: Changes to FFCRA Leave in the American Rescue Plan

The American Rescue Plan Act, signed into law March 11, 2021, includes changes to emergency paid sick leave and paid family leave under the Families First Coronovirus Response Act (FFCRA).

While the FFCRA’s leave requirements expired at the end of December 2020, the tax credits to fund the leave had been extended through March 2021 for employers that continued to voluntarily provide the leave.

The Rescue Plan further extends the credits through Sept. 30, 2021. It also allows the credits for 80 new hours of paid sick leave per employee, starting April 1. And, the credits are now allowed for leave related to COVID-19 testing and vaccination.

In addition, the Rescue Plan applies the FFCRA family leave tax credit to12 weeks of leave (up from 10), and applies the family leave credit to paid sick leave purposes.

Official Guidance from federal agencies interpreting the law is expected.

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