The American Rescue Plan Act (ARPA) extends relief to not-for-profit organizations, state and local government entities, and federally recognized tribes that self-pay unemployment insurance.
Originally, under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the federal government paid 50% of the unemployment costs that were incurred by not-for-profit, governmental, and tribal entities that reimburse unemployment payments to their states instead of paying unemployment taxes.
The CARES Act covered the period from March 13, 2020, to December 31, 2020. The Consolidated Appropriations Act, 2021 extended that period to March 31, 2021.
ARPA further extends the time period to September 6, 2021, and increases the reimbursement rate to 75% of payment made in lieu of contributions to a state’s unemployment fund. These reimbursements apply to all payments made, even if the employee wasn’t unemployed because of the COVID-19 pandemic.
Reimbursement Rate Periods
For states where the week of unemployment ends on a Saturday, the 75% reimbursement rate begins with the week ending April 10, 2021, and ends with the week ending on September 4, 2021.
For states where the week of unemployment ends on a Sunday, the 75% reimbursement rate begins with the week ending April 11, 2021, and ends with the week ending on September 5, 2021.
We’re Here to Help
For questions about how these changes could impact you and your business, please contact your Moss Adams professional.