$1.9 Trillion in Federal COVID-19 Relief. What Does It Mean for Employers and Employees?
On March 11, 2021, President Joe Biden signed the American Rescue Plan Act of 2021, which provides an unprecedented $1.9 trillion in COVID-19 relief. The Act includes no fewer than (5) major developments relating to the workplace, including:
A tax credit for employers who provide their workers with paid sick leave related to COVID-19. The tax credit has been extended to paid sick leave provided through September 30, 2021.
Unemployment payments through September 6, 2021 have been increased by $300 per week. Also, the first $10,200 in unemployment payments will be tax-free for recipients with a household income less than $150,000.
Continuation health coverage (COBRA) through September 30, 2021 will be 100% subsidized by the federal government.
Small business grants totaling $50 billion, including $28.6 billion for bars and restaurants that closed due to the pandemic.
Expansion of the Paycheck Protection Program (PPP), including coverage for more non-profits, $7.25 billion in additional PPP funds, and eligibility for some employers to receive a second PPP loan.
As the list above makes clear, the Act provides employers with additional incentives such as tax credits and loans aimed at preserving their existing workforce investment. Meanwhile, employees have additional protections relating to pay, paid sick leave, and health coverage.
Questions
Shehan Legal closely monitors legal developments affecting employees and employers, in New York and Virginia, and federal government employees worldwide. For more information visit www.shehanlegal.com or to speak with attorney Kevin Shehan, please call 917-740-7805, email kevin@shehanlegal.com, or send a message using Shehan Legal’s Contact page (linked here).
EXTERNAL RESOURCES:
| SMALL AND MEDIUM EMPLOYERS | For more information from the U.S. Small Business Administration click here.
| EMPLOYEES | For more information from the White House click here or the U.S. Internal Revenue Service click here.
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