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FFCRA Update – Tax Credits Extended to September 30


By Lisa Calick, Director, HR Advisory

American Rescue Plan New Extensions

One of the provisions of the recently passed American Rescue Plan covers paid sick and family leave, as originally provided by the Families First Coronavirus Response Act (FFCRA).  While the requirement to provide leave under FFCRA expired December 31, 2020, the rescue package extends the tax credits until September 30, 2021 for employers who voluntarily continue to provide paid leave under the same terms as FFCRA.  You may recall that the stimulus bill that passed at the end of 2020 had only extended this date to March 31, 2021.

The Act also expands the list of qualifying reasons for FFCRA leave to include:

  • Obtaining a COVID vaccine;
  • Recovering from any illness or condition related to the COVID vaccine; or
  • Seeking or awaiting the results of a COVID diagnosis or test if either the employee has been exposed or the employer requested the test or diagnosis

The sick leave entitlement of 80 hours, or 10 days, will reset on April 1, 2021, per employee.  This means that employers can choose to provide an additional amount of leave to their employees who qualify under FFCRA, regardless if someone had already exhausted their leave allowance in the past year.

Additional changes include the following:

  • Increase in the number of weeks an employee can seek paid family leave from 10 to 12 weeks, with the related tax credit limit increased to $12,000
  • Increase in the number of days of paid leave allowed for self-employed workers from 50 to 60
  • New nondiscrimination rules, so employers may not discriminate in favor of highly compensated or full-time employees or those based on tenure, when providing leave

More blogs on FFCRA and NJ Payroll Taxes of Employers can be found here:

Questions about FFCRA tax credits or qualifications? Talk to a Wiss expert to learn more.

American Rescue Plan, ARPA, Families First Coronavirus Response Act, Family Leave, FFCRA, Lisa Calick, Paid Leave, Sick Leave, Tax Credits

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