On March 11, President Biden signed into law the American
Rescue Plan Act (ARPA), a 1.9 trillion stimulus package aimed to speed up the United States’ recovery from
the economic and health effects of the COVID-19 pandemic. As you know by
now, there are a significant amount of provisions included in the ARPA.
Below are some of the highlights:
- Extends the FFCRA paid sick time and paid family
leave tax credits beginning April 1 through September 30, 2021 and
remains refundable and advanceable through IRS Form 7200.
a 100% COBRA premium subsidy for any employee or dependent who is a
COBRA qualified beneficiary (or will become one), resulting from an
involuntary termination of employment or a reduction of hours between
April 1 and September 30, 2021.
- Extends Unemployment Benefits: federal
unemployment supplement of $300 a week, which was scheduled to expire on
March 14th, is renewed through September 6th.
- Authorizes Stimulus
Checks: authorizes the Internal Revenue Service (IRS) to pay up to
$1,400 to individuals and an additional $1,400 for each dependent of the
taxpayer up to specified income limits. The amount will be reduced – or
eliminated – for people with an income above a certain amount.
- Provides assistance to restaurant, bars, and shuttered
venues by establishing a $29 billion Restaurant Revitalization Fund
(RRF) to address the pandemic’s devastating impact on the food
- Restores the State Small Business Credit Initiative
(SSBCI), which expired in 2017. The program provides federal funding
to deliver flexible, affordable capital to small businesses across the
nation. The new iteration of the program will provide $10 billion in
funding to support small businesses recovering from the economic impacts
of the COVID–19 pandemic.
- Allocates an additional $7.25 billion towards Paycheck
Protection Program funding and adds additional covered nonprofit
entity as an eligible nonprofit for first and second draw PPP loans.
(The deadline to submit a PPP loan application has not been
extended, so organizations eligible to apply for a second draw PPP loan
must do so by March 31, 2021.)
- Extends the Employee Retention Credit from June
30, 2021 to December 31, 2021. The rate of credit will continue at 70% for
this extended period of time
- Increases the Child Tax Credit and the Earned Income
Tax Credit from $2,000 to $3,000 for each child over age six and
$3,600 for each child who is under age six as of the close of the calendar
Jennifer Adams | HR Consultant