Nonprofit Resources

New IRS FAQs for Paid Leave Provisions Under the American Rescue Plan Act

On June 11, 2021, the IRS released new FAQs about the Emergency Paid Sick Leave Act (EPSLA) and the Expanded Family and Medical Leave Act (EFMLA) as they relate to paid leave taken under the American Rescue Plan Act of 2021 (the ARP).

Under the ARP, EPSLA and EFMLA payments are no longer required to be paid by employers for qualified leave wages paid after December 31, 2020. However, the credits are available for eligible employers who pay out qualified leave wages between April 1, 2021, and September 30, 2021. These FAQs pertain to credits that are claimed for the period of April 1, 2021, through September 30, 2021.

The new FAQs address several areas that will be of interest to employers, including:

• How to determine the amount of qualified sick leave and qualified family leave wages
• The period of time for which the credits are available
• How to claim the credits

You can learn more about qualified leave wages paid before April 1, 2021, in these IRS FAQs.

Please contact us with any questions.

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