Guidance on American Rescue Plan’s Tax Credits

Some OMA members have recently asked for more details about the tax credits provided by the American Rescue Plan (ARP) Act, the most recent federal COVID-19 relief law. Here’s a short list of helpful resources from OMA Connections Partners:

• GBQ Partners’ summary of the extended Employee Retention Credit — a refundable tax credit against certain employment taxes that equals up to 70% of the qualified wages (as much as $28,000 per employee for 2021).
• Dinsmore’s summary of the sick and family leave tax credit, which allows employers to take an additional credit for 100% of wages paid as qualified sick or family leave to employees.
• Benesch’s summary of the ARP’s COBRA coverage credit, as well as other key provisions in the law.

Also, the IRS recently published details regarding tax credits for employers that provide paid leave to employees to get COVID-19 vaccinations. 5/10/2021