August 9 Tip of the Week

Continuing to provide paid sick and family leave under the American Rescue Plan Act (ARPA)?  Make sure you are up to date on all of the qualifying reasons for paid sick and family leave.

When the Families First Coronavirus Response Act (FFCRA) expired on December 31, 2021, employers were no longer required to provide paid sick and family leave for certain reasons related to COVID-19.  However, under ARPA, employers may voluntarily continue to provide paid leave for the same qualifying reasons under FFCRA and collect the payroll tax credit.

In addition to the original qualifying reasons under FFCRA, ARPA added three new qualifying reasons for paid sick leave: obtaining the COVID-19 vaccine, recovering from an injury, disability, illness, or condition related to the COVID-19 vaccine, and seeking or waiting on a diagnostic test or medical diagnosis for COVID-19.  

Now the IRS has expanded these criteria, and employees may qualify for paid leave for accompanying an individual to obtain a COVID-19 vaccine and caring for an individual who is recovering from an injury, disability, illness, or condition related to the COVID-19 vaccine.  With respect to these qualifying reasons, “an individual” includes a family member, someone who resides in the employee’s home, or a similar person with whom the employee has a relationship that creates the expectation that the employee would provide care for that person.

Remember, paid sick and family leave is NOT mandatory under ARPA.  However, employers who voluntarily choose to provide the leave and wish to collect the payroll tax credit must provide leave for all qualifying reasons under ARPA.