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Important Reminders Regarding The American Rescue Plan Act

White HouseLast month, we sent out communication regarding initial information on the American Rescue Plan Act (ARP) after it was signed into law by President Joe Biden on March 11.  A couple of key items of the ARP go into effect Thursday, April 1.

Families First Coronavirus Act (FFCRA) Updates
Effective April 1st, extensions of leave under the FFCRA are optional.

Has your organization made a decision to extend or discontinue pay under the Emergency Paid Sick Leave Act (EPSLA) and/or Emergency Family and Medical Leave Expansion Act (EFMLEA)?  These decisions should be reflected in any written COVID-19 policy and communicated to your payroll provider.  Additional details on the changes can be referenced in our previous post regarding the ARP.

COBRA Subsidy
As a reminder, effective today, April 1st, the ARP requires 100% employer subsidy for COBRA premiums.

Is your organization ready for this change?  Business owners should ensure their finance department is aware of this change from a cash flow perspective.  Additionally, plan to should follow-up with any third-party COBRA administrators to ensure they handle all required notices. We are still awaiting further guidance from the Department of Labor on sample notices.

For more information on these changes, please reach out to your designated Achilles contact, or contact Kristen McGullion at 281-469-1800.

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