COVID-19 American Rescue Plan Act

General information

This is as a separate benefit from any other voluntary or state-mandated leave amounts the employee is eligible for.
Employers can't require employees to first use other paid leave given by the employer before using paid sick leave under the Act.

These mandates vary by state.
Review the state laws to make sure your business is compliant.

Eligibility

Is subject to a Federal, State, or local quarantine or isolation order related to COVID-19.
Has been advised by a health care provider to self-quarantine due to COVID-19 concerns.
Is caring for an individual who is subject to such an order or has been so advised.
Is experiencing symptoms of COVID-19 and seeking a medical diagnosis.
Is caring for a son or daughter under one of the following conditions:
The child's school or place of care has been closed due to COVID-19.
The child's school requires or makes optional a virtual learning model or requires or makes optional a hybrid of an in-person and a virtual learning model.
The child's care provider isn't available due to COVID-19 precautions.
Is experiencing any other substantially similar symptoms.
Is caring for a family member with one of the following conditions:
Has a mental or physical disability.
Is 55 years old or older and incapable of self-care.
note
These conditions are without regard to whether another individual other than the employee is available to care for such family member.
The place of care for the family member is closed due to COVID-19.
The direct care provider isn't available due to COVID–19.
Is obtaining immunization related to COVID–19 or is recovering from any injury, disability, illness, or condition related to such immunization.

Compensation

If they take the sick leave under reasons 1-4 in the Eligibility section, the required amount is the greater of the following:
The employee's regular rate of pay.
The federal minimum wage rate.
The state or local minimum wage rate applicable to the employee.
If they take the sick leave under reasons 5-8 in the Eligibility section, the required compensation is 2/3, or roughly 66%, of the required amount.

Limits

$511.00 per day/$5,110.00 total if used under reasons 1-4 (Eligibility).
$200.00 per day/$2,000.00 total if used for reason 5-8 (Eligibility).
$200.00 per day/$12,000 total for extended care.

Tax credits

Employers will be provided a refundable tax credit.
The credit will be the combination of the item’s wages and the value of ERFICA-SS and ERFICA-MED for those wages.
We're waiting for additional guidance from the government with the details of how the credit will be reported.
For more information, go to the bill and then to the section, "Sec. 4001. EMERGENCY FEDERAL EMPLOYEE LEAVE FUND."

FAQ

No. The American Rescue Plan Act Sick Leave hours must be paid to employees who qualify as a separate benefit.
An employer may not require an employee to use other paid leave (vacation or sick) provided by the employer to the employee before the employee uses the available hours under this Emergency Paid Sick Leave Act.

If necessary, prorate the amount to be paid as regular salary and the amount to be paid as COVID-19 wages.
Enter the applicable amounts under each line item separately in Time Entry.
Contact your Payroll Specialist if you have any questions.

We're waiting for additional guidance from the government with the details of how the credit will be reported.

No. These items can't be used in tandem.