One at One: School Districts & Family First Coronavirus Recovery Act

Today’s Issue by Jackie D’Arminio:

Whether schools districts are eligible for tax credits for emergency paid sick leave and emergency paid family leave, as implemented under the Family First Coronavirus Recovery Act (“FFRCA”)?

Answer:

Yes. The American Rescue Plan Act of 2021 (“ARP”), signed by President Joseph Biden on March 11, 2021, changed the applicable employment tax against which FFRCA tax credits can be applied. As such, public entity employers, including school districts, are eligible for tax credits designed as reimbursement for emergency paid sick leave and/or emergency paid family leave as previously implemented under the FFRCA. The reimbursement applies to any leaves granted between April 1, 2021 and September 30, 2021.

Resources:

https://www.irs.gov/newsroom/employer-tax-credits-for-employee-paid-leave-due-to-covid-19

To Learn More about FPSCTT’s Education and School Law Practice, please contact:

Lester Taylor, Partner and Chair

Christine Soto, Partner and Co-Chair

Afshan Ajmiri Giner, Partner and Co-Chair

Caitlin Pletcher, Partner

This post is for informational purposes only and should not be construed as legal advice.