American Rescue Plan Act


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 credit
    s beginning April 1 through September 30, 2021 and
        remains refundable and advanceable through IRS Form 7200.


  • Includes
        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
    : 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
    to address the pandemic’s devastating impact on the food
        services industry.


  • Restores the State Small Business Credit Initiative
    , 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

 Written By:

Jennifer Adams | HR Consultant


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