The ARPA Reset Button for FFCRA Wage Payments, Apr. 22, 2021

The ARPA “resets” the 10-day limitation period for the maximum number of days for which the employer can claim the paid sick leave credit for wages paid to an employee (the reset happens after March 31, 2021, for employees and January 1, 2021, for self-employed taxpayers). In other words, employers who paid the full amount of qualifying leave in 2020 can once again claim tax credits for wages paid in 2021. However, a new non-discrimination provision prevents employers from offering leave in a way that discriminates in favor of highly compensated employees, full-time employees or based on seniority. In other words, employers who grant an additional ten days of paid leave should provide that leave across the board to all employees. As it stands, it appears that the reset button is only available for FFCRA paid sick wages (not the expanded 12 weeks of FMLA paid time off). Small business clients should pay close attention to guidance from the DOL and IRS as it continues to emerge and clarify the law itself. For more information on ARPA changes to the FFCRA wage law, see Q .