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 credits 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   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   services industry.
 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   year.
 Written By:
Jennifer Adams | HR Consultant
