Congress passed the latest COVID-19 relief bill, known as the American Rescue Plan, on March 10th and President Biden has stated he will sign the bill into law on Friday, March 12, 2021. The American Rescue Plan includes several employment-related provisions.
Unemployment: The bill extends certain unemployment benefits through September 6, 2021, including the extra $300 per week federal subsidy. The bill also extends the Pandemic Unemployment Assistance program (PUA) for those who are self-employed and gig workers who don’t qualify for traditional state unemployment benefits.
COBRA: Effective April 1st through September 30th, 2021, the bill provides a 100% premium subsidy for the cost of COBRA if an employee lost coverage under their employer’s health care plan because of an involuntary termination. The Treasury Department is expected to provide guidance on how the subsidy will be administered in the coming weeks prior to the April 1 effective date.
FFCRA Leave: The bill extends the tax credit available for covered employers who voluntarily provide FFCRA leave to their employees to September 30, 2021. The tax credit for providing FFCRA leave was previously set to expire on March 31st. Additionally, the bill expands the covered reasons for FFCRA paid sick leave to include time off when and employee is:
- receiving a COVID-19 vaccine
- recovering from any injury, illness, disability or condition related to obtaining the vaccine after medical diagnosis
- seeking or awaiting COVID-19 test results or a medical diagnosis for COVID-19 or their employer has requested a test or diagnosis.
Paycheck Protection Program (PPP) Loans: The bill provides an additional $7.25 billion for the Paycheck Protection Program and expands eligibility to certain nonprofits.
Relief for Restaurants: The bill provides approximately $25 billion in relief support grants for certain restaurants and bars through the Small Business Administration. These grants can be used for expenses such as payroll, rent/mortgage and utilities.
Pension Plans: The bill provides $86 billion to help fund multi-employer pension plans for the next 30 years.
Xenium will continue to update our clients as additional guidance on the implementation of the bill’s employment-related provisions is released.