A- A+

American Rescue Plan of 2021 Implements Changes to Paid Sick Leave

Paid Sick Leave

April 12, 2021

Here at McGowen Hurst Clark Smith (MHCS), we are committed to providing the most up-to-date information regarding funding and tax policy changes due to the COVID-19 pandemic. In an effort to mitigate the continuing effects of the pandemic, the American Rescue Plan Act of 2021 was signed into law last month. The Rescue Plan included changes to paid sick leave and other updates such as:

  • Extending the Families First Coronavirus Response Act’s sick and family leave paid wages through Thursday, September 30, 2021.
  • The Rescue Plan adds three additional qualifications for using paid sick leave:
    • Seeking and awaiting COVID-19 test results after an exposure or employer request
    • Obtaining a COVID-19 vaccination
    • Recovering from a side effect
  • An employee’s available balance of paid sick time is reset to 10 days (max 80 hours) for full-time employees. If an employee did have remaining hours as of March 31, 2021, they cannot rollover.
  • Expanded family medical leave qualifications are no longer limited to school or daycare closings related to COVID-19. Any qualifying circumstance of paid sick leave can be used as a reason to receive expanded family medical leave.
  • Expanded family medical leave coverage increased to 12 weeks from 10 weeks. The two-week unpaid waiting period to take expanded family medical leave was removed.
  • Extended the Employee Retention Tax Credit through Friday, December 31, 2021. Find more info here. To receive the tax credit, an employer cannot discriminate who is entitled to the paid leave.

You can find more COVID-19 resources and updates from MHCS here, or reach out to an MHCS advisor.

Count on the Greater Des Moines Partnership for economic recovery information and business and industry recommendations as the region moves forward from the COVID-19 pandemic. Learn more about current impacts and future trends from the DSM Forward playbooks here.

Find these tips useful? Learn more tricks on how to maximize the potential of your business through The Partnership’s Small Business Resources Hub.

McGowen Hurst Clark Smith

McGowen Hurst Clark Smith is home to experienced CPA's, accountants and consultants in Greater Des Moines (DSM).