Stimulus Bill Measures That Affect Employment

The $1.9 trillion stimulus bill has significant effects on employment.  

• Unemployment Insurance - Weekly federal supplement of $300.00 per week is extended through September 6, 2021, and payments on the first $10,200.00 will generally be tax-free for households earning up to $150,000.00 per year.
• Health Coverage - Subsidizes the premiums for individuals eligible for COBRA coverage through September for laid-off workers.
• Paid Leave - Encouragement of paid leave benefits as much as $1,400.00 per week and providing tax credits for employers with fewer than 500 employees to reimburse them for the cost of the sick time.  While employers are not required to provide emergency paid sick leave or emergency FMLA leave, employers who choose to voluntarily continue such leaves may claim tax credits for qualified wages paid between April 1, 2021 through September 30, 2021.  
• Other Provisions - A third round of stimulus payments at $1,400.00 per eligible individual which begins to phase out for those earning $75,000.00, with couples making up to $150,000.00 getting $2,800.00.  Children and adult dependents are also eligible.  Tax credits are expanded as well as the child tax credit increase to $3,000.00 from $2,000.00 for each child 6 to 17 years old, with children 5 and under eligible for $3,600.00.

This is part of our April 2021 Newsletter.

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