Corporate Payroll Services

Image Credit : President Biden signs the American Rescue Plan on Thursday, March 11, 2021. (Mandel Ngan | AFP via Getty Images)

On Thursday, March 11, 2021,  President Biden signed the American Rescue Plan, a $1.9 trillion Covid relief bill.  Here are the highlights of the bill:

  • $1,400 advance payments to most Americans and their dependents under the recovery rebate payment.  The full amount goes to individuals earning less than $75,000 of adjusted gross income, heads of households (like single parents) earning less than $112,500 and married couples earning less than $150,000.  Families get an additional $1,400 per child.  A married couple with two children, for example, could receive up to $5,600.
  • $300 per week jobless aid supplement and programs making millions more people eligible for unemployment insurance until Sept. 6.  The plan also makes an individual’s first $10,200 in jobless benefits tax-free.
  • Expands the Child Tax Credit for one year, increasing it to $3,600 for children under the age of 6 and to $3,000 for children between the ages of 6 and 17.
  • Increases the Child and Dependent Care Tax Credit for 2021 and makes it fully refundable.
  • Earned Income Tax Credit is enhanced with several changes and special rules for individuals with no children.
  • Expands and extends the Employee Retention Tax Credit, designed to allow companies to keep workers on payroll, through the end of 2021.
  • Extends Sick and Family Leave Credits to September 30, 2021.  Expands the allowable reasons for leave and resets the limits starting April 1, 2021.
  • Offers nearly $30 billion in aid to restaurants.
  • Puts $20 billion into COVID-19 vaccine manufacturing and distribution, along with roughly $50 billion into testing and contact tracing.
  • Adds $25 billion in rental and utility assistance and about $10 billion for mortgage aid.
  • Offers $350 billion in relief to state, local and tribal governments.
  • Directs more than $120 billion to K-12 schools.
  • Increases the Supplemental Nutrition Assistance Program benefit by 15% through September.
  • Includes an expansion of subsidies and other provisions to help Americans afford health insurance.