The American Rescue Plan Act provides premium subsidies for individuals purchasing health insurance on the Affordable Care Act exchanges through 2022. Withdrawal liability rules remain unchanged, and the legislation does nothing to address the problems that resulted in the multiemployer pension crisis in the first place.īeginning April 1, 2021, through September 30, 2021, eligible individuals who have been laid off, furloughed, or had their hours reduced can choose to continue group health benefits without having to pay COBRA premiums. This financial assistance is not a loan, and there are no repayment obligations for plans receiving assistance. The American Rescue Plan Act establishes a fund for the Pension Benefit Guaranty Corporation to provide financial assistance to “critical and declining” plans to ensure that benefits are paid through the 2051 plan year. Significantly, under the American Rescue Plan Act, benefits recipients who earn less than $150,000 each year are not required to include the first $10,200 of unemployment benefits as income for the 2020 tax year. The Federal Pandemic Unemployment Compensation (FPUC) program supplement of $300 per week, which was also set to expire on March 14, 2021, will be extended through September 6, 2021.Additionally, eligibility weeks have been increased from 24 weeks to 53 weeks. PEUC was also set to expire on March 14, 2021, but the program has been extended through September 6, 2021. Pandemic Emergency Unemployment Compensation (PEUC) provides additional weeks of unemployment insurance benefits to individuals who have exhausted their state unemployment benefits.It has now been extended through September 6, 2021, and the number of eligibility weeks have been increased from 50 weeks to 79 weeks. The Pandemic Unemployment Assistance (PUA) program, which is for workers who are not traditionally eligible for unemployment insurance (such as independent contractors), was set to expire on March 14, 2021. The American Rescue Plan Act extends the three major unemployment insurance programs created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and continued in the Consolidated Appropriations Act (CAA), 2021. Those earning more than $75,000 will receive less than $1,400, and the benefit is completely phased out for individuals earning $80,000 or more.įor married couples, each spouse is entitled to $1,400 ($2,800 for both), but the threshold is a total yearly income of $150,000 or below and phases out for couples earning $160,000 or more each year. Individuals with yearly adjusted gross incomes of $75,000 or less will receive checks in the amount of $1,400 (plus $1,400 for each eligible dependent). The legislation provides a third round of direct-payment stimulus checks to eligible recipients. Set forth below are some of the major provisions of the American Rescue Plan Act. The legislation continues some programs established in these previous efforts, but it also adds some important components. While the legislation marks the first major legislative victory for President Biden and the administration, it is the sixth federal legislative relief package aimed at addressing the COVID-19 pandemic and its economic fallout. On March 11, 2021, President Joe Biden signed into law the American Rescue Plan Act of 2021-a $1.9 trillion economic relief package.
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