To incentivize employers to provide the Emergency Paid Sick Leave (EPSL) or paid expanded Family Law Medical Leave Act (FMLA) leave (previously required by the FFCRA) to eligible employees, the American Rescue Plan Act (ARPA) extends the available tax credit for payments made for FFCRA leave for six months, from March 31 through September 30, 2021.
ARPA also adds the following as qualifying reasons for employees to take FFCRA leave:
- the employee is obtaining immunization (vaccination) related to COVID-19
- the employee is recovering from a condition, illness or disability related to the vaccination
- the employee is seeking or awaiting the results of a COVID-19 test or diagnosis (including where the employer has requested the test or diagnosis)
ARPA provides that employers may voluntarily provide employees, in addition to any EPSL provided earlier, up to 80 hours of EPSL in the period from April through September 2021. The employer could utilize the corresponding tax credit.
The Act also increases the amount of wages for which an employer may claim the tax credit for paid expanded FMLA leave from $10,000 to $12,000 annually per employee. However, ARPA disqualifies employers from using the tax credit when they treat highly compensated employees, full-time employees or employees with more tenure differently under a voluntary paid sick leave plan.
The postings on this blog were created for general informational purposes only and do not constitute legal advice or a solicitation to provide legal services. Although we attempt to ensure that the postings are complete, accurate, and current as of the time of publication, we assume no responsibility for their completeness, accuracy, or timeliness. The information in this blog is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. Readers should not act upon this information without seeking professional legal counsel.
This blog may contain links to independent third party websites and services, including social media. We provide these links for your convenience, and you access them at your own risk. We have no control over and do not monitor the content or policies (including privacy policies) of these third-party websites and have no responsibility for, and no liability with respect to, their content, accuracy, or reliability. Unless expressly stated, we do not endorse any of the linked websites or any product, service, or publication referenced herein or therein. We will remove a link to any site from this blog upon request of the linked entity.
We grant permission to readers to link to this blog so long as this blog is not misrepresented. This site is not sponsored or associated with any other site unless so identified.
If you wish for Wilentz, Goldman & Spitzer, P.A., to consider representing you, please obtain contact information from the Contact Us area of this blog or go to the firm’s website at www.wilentz.com. One of our lawyers will be happy to discuss the possibility of representation with you. However, the authors of Wilentz blogs are licensed only in New Jersey and/or New York and do not wish to represent anyone who viewed this site in a state where the site fails to comply with all laws and ethical rules of that state.