What are the new regulations for paid leave under the American Rescue Plan?
153 views | Last modified 9/26/2023 6:22:02 AM EST | Added by TaxBandits Team

Initially, paid leave was introduced in the Families First Coronavirus Response Act (FFCRA) in response to COVID-19. It allowed employees to compensate for paid leave taken between April 1, 2020 – December 31, 2020. Then, it was extended to March 31, 2021, under the Consolidated Appropriations Act.

However, the new administration implemented the American Rescue Plan, stating that employers should provide paid leave until September 30, 2021, as the act extended the FFCRA Paid Sick and Family Leave tax credit from April 1 through September 30, 2021. Also, employers can claim paid leave credits up to $12,000 per employee.