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COVID-19 Stimulus Bill Provisions That Affect Employee Benefits

Friday, January 8, 2021 On December 27, 2020, President Trump signed into law the Consolidated Appropriations Act, 2021 (the CAA), a second stimulus package and the most recent of several major pieces of legislation to be enacted since the start of the COVID-19 pandemic last March. Many of the provisions in the CAA extend or clarify relief provided in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and the Families First Coronavirus Response Act (FFCRA) enacted earlier this year. The following is a general overview of key provisions of the CAA as it relates to employee benefits. Please note that this is a new law and agency guidance is likely to be issued over the next year or so, therefore you may wish to seek advice of counsel with respect to these issues.

Consolidated Appropriations Act Expands Employee Retention Credit | Hodgson Russ LLP

To embed, copy and paste the code into your website or blog: On December 27, 2020, President Trump signed the Consolidated Appropriations Act, 2021 (the “CAA”).  The CAA provides a diverse array of tax-related relief measures to combat the negative impacts of COVID-19 on taxpayers.  Congress included in the CAA provisions that extend, increase, and clarify the employee retention tax credit (“ERC”) originally provided under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.  Importantly, in order to qualify for the ERC employers still must have experienced either a qualifying revenue decline (albeit reduced under the CAA) or suspension of operations due to a COVID-related shutdown order.

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