ARPA Tag

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Legal Update Header The IRS has released new resources explaining the tax credits available for employers who opt to provide paid family leave and paid sick leave under the Families First Coronavirus Response Act (FFCRA) and the American Rescue Plan Act (ARPA) through Sept. 30, 2021.

The new resources consist of a fact sheet and a “snapshot” document published on April 21, 2021, in conjunction with public remarks by President Joe Biden calling on employers to help their employees get vaccinated.

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HR Compliance Bulletin header image On April 7, 2021, the U.S. Department of Labor (DOL) issued answers to frequently asked questions (FAQs) about the American Rescue Plan Act’s (ARPA) premium assistance for health insurance continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) and similar state mini-COBRA programs.

The DOL’s FAQs are reprinted in this Compliance Bulletin.

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Legal Update Header On April 9, 2021, the Internal Revenue Service (IRS) released a fact sheet containing FAQs addressing changes for taxpayers who received advance payments of the 2020 premium tax credit (PTC) due to the American Rescue Plan Act (ARPA).

Understanding how recent legislative changes for the PTC affect individuals, families and their 2020 tax return is important. The IRS developed this fact sheet to explain what taxpayers need to know about claiming a net premium tax credit (net PTC) and what to do if they have excess advance payments of the premium tax credit (APTC) for tax year 2020.

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Legal Update Header On April 2, 2021, the Internal Revenue Service (IRS) published Notice 2021-23 to provide guidance for employers claiming the employee retention credit (ERC) for the first two quarters of 2021.

The ERC was originally created by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), and has since been modified and extended by other laws—most recently, the American Rescue Plan Act (ARPA) on March 11, 2021.

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Legal Update Header On April 7, 2021, the U.S. Department of Labor (DOL) issued FAQs and model notices for the COBRA premium assistance provisions of the American Rescue Plan Act (ARPA).

The ARPA provides a 100% subsidy for employer-sponsored group health insurance continued under COBRA and similar state continuation of coverage programs for eligible individuals. The subsidy applies from April 1 through Sept. 30, 2021. The notices and the FAQs appear on a new DOL webpage dedicated to the ARPA COBRA subsidy.

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News Brief header President Joe Biden’s administration recently extended access to the Special Enrollment Period (SEP) for the Affordable Care Act (ACA) to Aug. 15, from the previously announced end date of May 15.

This direction comes after the U.S. Department of Health and Human Services (HHS) opened this SEP for the Health Insurance Marketplace on Feb. 15, resulting in over 200,000 enrollments in the first two weeks.

American Rescue Plan ACA Subsidies

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HR Compliance Bulletin header image The American Rescue Plan Act (ARPA), enacted March 11, 2021, includes changes to emergency paid sick leave and paid family leave under the Families First Coronavirus Response Act (FFCRA).

The ARPA extended tax credits through Sept. 30, 2021, for employers that continue to provide FFCRA leave voluntarily (beyond the Dec. 31, 2020, expiration date) and made changes to tax credit eligibility for both types of FFCRA leave.

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HR Compliance Bulletin header image The American Rescue Plan Act (ARPA), signed into law March 11, 2021, provides a 100% subsidy of premiums for employer-sponsored group health insurance continued under the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) and similar state continuation of coverage (mini-COBRA) programs.

ARPA subsidies cover the full cost of COBRA or mini-COBRA premiums from April 1, 2021, through Sept. 30, 2021, for employees (and their qualifying family members), if the employee lost or loses group health insurance due to an involuntary job loss or reduction in work hours.