The Consolidated Appropriations Act of 2021 was signed into law on December 27, 2020. The bill is one of the largest spending measures ever enacted.
Notable Coronavirus Relief that the Act Provides:
- Expands upon the previous CARES Act and provides for an extension of increased federal unemployment benefits of $300 per week until March 14, 2021.
- Continues the Paycheck Protection Program (PPP). Businesses with 300 or fewer employees who can document at least a 25% decrease in gross revenues from previous 2019/2020 quarters can receive additional PPP funds up to $2 million. These monies do not have to be repaid if primarily used for payroll purposes.
- Will provide a $600 stimulus check for most individuals with an adjusted gross income lower than $75,000 or families with an income of up to $150,000.
- An Extension of Families First Coronavirus Response Act (“FFCRA”) credits for paid sick and family leave. The FFCRA passed earlier in 2020, provided employers a payroll tax credit for paid sick and family leave due to COVID-19. The Act extends this credit through March 31, 2021.
- Extension of the employer tax credit for paid family and medical leave up to 12 weeks per year. The Act extends this credit through 2025.
- Extension of the work opportunity credit. The work opportunity credit is available to employers for hiring individuals from certain targeted groups. The Act extends the credit through 2025.
If you are an employer with any questions about the Consolidated Appropriations Act, please feel free to contact a Zausmer attorney for assistance.