As COVID-19 began spreading rapidly across the country, legislators went to work preparing the Families First Coronavirus Response Act (FFCRA). This Act became law on March 18, 2020, and it created a 100% refundable tax credit for employers that paid qualified leave to employees. The COVID-related Tax Relief Act of 2020 extended the credit to March 31, 2021. Most recently, the American Rescue Plan Act of 2021 (ARPA) extends the tax credit to Sept. 31, 2021, and makes a few additional changes. In this blog post, we'll cover three key points: paid sick leave, family and medical leave, and the 100% refundable tax credit you can claim for paying either type of leave.

Emergency paid sick leave

According to the FFCRA, employers were required to provide up to two weeks – or 10 days – of paid sick leave or expanded family and medical leave for specified reasons related to COVID-19