On March 10, the final version of the American Rescue Plan Act of 2021, was approved by Congress, with most of the employer provisions from the original proposal unchanged. As expected, the provision raising the federal minimum wage was excluded from the final relief package. The American Rescue Plan was signed into law by President Biden on Thursday, March 11.

Here is a short summary of numerous law changes:

• COBRA continuation coverage.
• Dependent care flexible spending accounts. The law raises the 2021 contribution limit for dependent care flexible spending accounts to $10,500 for single taxpayers and to $5,250 for married individuals filing separately. The provision raises the exclusion limits for the plan year beginning after Dec. 31, 2020, and before Jan. 1, 2022.
• Modification to the Paycheck Protection Program.
• Veteran Rapid Retraining Assistance Program.
• The extension of federal pandemic unemployment assistance.
• The extension of pandemic emergency unemployment compensation.
• The extension of emergency unemployment relief for governmental entities and nonprofit organizations.
• Employer credits for paid sick and family leave.
• The employee retention credit.