$1.9 trillion stimulus package enacts employment-related provisions

The American Rescue Plan act, which President Joe Biden signed into law this month, enacts a series of measures affecting employers and workers.

The law covers 100 percent of an eligible individuals’ COBRA premiums from April 1 through Sept. 30, 2021. The measure also extends tax credits employers get for voluntarily providing workers COVID-related paid leave under the Families First Coronavirus Response Act.

The American Rescue Act also extends federal supplemental unemployment benefits into September, and the law expands eligibility for subsidies under the Affordable Care Act exchanges.

The measure also increases the annual contribution limit for a dependent care assistance program from $5,000 to $10,500 (and from $2,500 to $5,250 for married couples filing taxes separately). An expansion of the employee retention tax credit is also included in the new law.