Skip to main content
1.800.383.8283
Library
  • Industries
    • Construction
    • Education
    • Healthcare
    • Manufacturing
    • Moving & Storage
    • Municipal
    • Non-profit
    • Welding Supply & Gas Dist.
  • Events
  • About
    • History
    • News
    • Office Locations
    • Team
    • Culture
    • Contact
    • Careers at Horton Group
  • Services
  • Online Bill Pay
1.800.383.8283
Client Login
Search

Choose a login.

  • Client Logins
    • Business Insurance
    • Employee Benefits
    • Personal Insurance
  • Library
    • Benefits
    • Commercial
    • Personal
    • Safety
    • Thought Leadership
    • Wellness
Home
1.800.383.8283
  • Business Insurance
    • Management Liability Insurance Practice
  • Employee Benefits
  • Consulting Services
  • Personal Insurance
  • Industries
    • Construction
    • Education
    • Healthcare
    • Manufacturing
    • Moving & Storage
    • Municipal
    • Non-profit
    • Welding Supply & Gas Dist.
  • Events
  • About
    • History
    • News
    • Office Locations
    • Team
    • Culture
    • Contact
    • Careers at Horton Group
  • Services
  • Online Bill Pay
  • Library
    • Benefits
    • Commercial
    • Personal
    • Safety
    • Thought Leadership
    • Wellness
      • Population Health Management
  • Client Logins
    • Business Insurance
    • Employee Benefits
    • Personal Insurance
Close Menu
  • Property & Casualty
  • Mergers & Acquisitions
  • Risk Transfer
  • Professional Liability
  • Claims
  • Cyber Liability Insurance
  • Automobile Liability
  • Captives & Alternative Risk
  • International
  • Surety Bond Services
  • Workers Compensation
  • Management Liability
  • ACA/DOL Compliance
  • Core & Voluntary Benefits
  • Executive Benefits
  • FSA / HSA
  • Group Medical
  • International Benefits
  • Private Exchange Technology
  • Retirement Services
  • Stop Loss
  • ThinkHR
  • Zenefits
  • Home Umbrella
  • Life & Health
  • Private Client
  • Speciality Recreation
  • Safety & Loss Control
  • TrustLayer
  • Wellness
‹ Back to Resources

FAQs Released by IRS on ARP Tax Credits for Paid Sick and Family Leave

June 28, 2021 at 1:45 PM
Share

In early June, new FAQs were released by the Internal Revenue Service (IRS) related to tax credits for eligible employers who voluntarily provide paid employee leave under the Families First Coronavirus Response Act (FFCRA). The FFCRA paid sick and family leave requirements themselves expired Dec. 31, 2020, but subsequent legislation—most recently the American Rescue Plan Act (ARP)—extended and enhanced the tax credits available for employers that choose to provide FFCRA leave through Sept. 30, 2021.

The New FAQs

There are 123 new FAQs, divided into 16 subtopics. They include information on how employers may claim the tax credits, including how to file for and compute the applicable credit amounts and how to receive advance payments for and refunds of the credits. The FAQs clarify the following issues, among others:

  • Daily and aggregate wage limits do not include health plan expenses or the employer’s share of Social Security and Medicaid taxes.
  • Qualified leave wages do not include federal taxes on the wages.
  • The last day an employer may file for advance payment of the credit.
  • The credit may apply for leave between April and September 2021, even if the employer did not pay the employee initially.
  • Employers must collect and maintain specific information from employees (and may require more than that specified) to substantiate eligibility for the credits. Records must be kept for six years.

Paid Sick and Family Leave Credits

The tax credits apply to employers with fewer than 500 employees and are refundable and advanceable. Wages are subject to daily and total limits.

This Legal Update is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. © 2021 Zywave, Inc. All rights reserved.


Material posted on this website is for informational purposes only and does not constitute a legal opinion or medical advice. Contact your legal representative or medical professional for information specific to your needs.

Human Resource, Compliance, and Employee Benefits Focused Events

Interested in sharpening your skills and potentially earning Continuing Education (CE) credits?
Join us for one of our upcoming events:
June

June 14, 2022 | Effective Hiring Practices for a Candidate-Driven Labor Market

June 16, 2022 | Navigating state leave laws and Unum’s Total Leave solution (Edina, MN)

June 16, 2022 | Medicare 101

June 22, 2022 | Nonprofit Summit 2022 (Naperville, IL)

June 23, 2022 | Update on Transparency, Surprise Billing, and Prescription/Health Cost Reporting Requirements

July

June 28, 2022 | Labor Market and Economic Update – What to Expect in the Second Half of 2022 and Beyond (Chicago, IL)

Footer: Call-To-Action

Contact the Horton Group today to discuss how you can achieve a higher level of performance.

Contact Us

Find Us

Horton Group
Corporate Headquarters / Orland Park, IL
(800) 383-8283

Bourbonnais, IL
Chicago, IL
Edina, MN
Estero, FL
Noblesville, IN
South Bend, IN
Sturgis, MI
Waukesha, WI 

  • About
  • News
  • Our Team
  • Career
  • Office Locations
  • Contact
  • Forms & Applications
  • Assurex Global
  • Awards
  • Privacy Policy

Join Our Mailing List!

Sign up to receive email notifications for upcoming events and important industry news.

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube
  • Instagram

Copyright Menu

  • Privacy Policy
  • Sitemap
  • Terms & Conditions
  • Ethics Reporting System
  • Compensation Disclosure
Copyright © 2022 The Horton Group