The American Rescue Plan (ARP), which was signed by President Biden on March 11, has two additional tax credits that may me of interest to AFSA members.
Employee Retention Credit
The ARP includes an extension of the Employee Retention Tax Credit (ERTC) through December 31, 2021. Originated in the CARES Act, the ERTC encourages businesses affected by Covid 19 to keep employees on payroll by providing a refundable tax credit of 50% up to $10,000 in wages to an employee each quarter by businesses. The ERTC has now been expanded to cover 70% of qualified wages up to $10,000 per quarter and includes established as well as newly formed businesses.
A business is eligible for an ERTC if it has been subject to a full or partial shut-down during COVID-19 or has experienced revenue declines (50% for 2020 ERTC and 20% for 2021 ERTC) when compared to 2019 revenues.
Paid Leave Credit Programs
The ARP extends tax credits for employer-provided paid sick and family leave through September 30, 2021. While these tax credits are voluntary, only employers with less than 500 employees may claim the refundable tax credits. Additionally, wages covered by the paid family leave credit increase to $12,000 per employee, from $10,000.
The Rescue Plan adds three additional qualifying reasons for paid sick leave and family and medical leave to include:
- Obtaining a COVID-19 vaccine;
- Recovering from an injury, disability, illness or condition related to a COVID-19 vaccination; or
- Seeking or awaiting the results of a COVID-19 test, or diagnosis because either the employee has been exposed to COVID-19 or the employer requested the test or diagnosis.
The ARP also resets the ten days (80 hours) per employee of qualifying paid sick leave.
American Rescue Plan Includes Additional Tax Credits
Mar 25, 2021
The American Rescue Plan (ARP), which was signed by President Biden on March 11, has two additional tax credits that may me of interest to AFSA members.
Employee Retention Credit
The ARP includes an extension of the Employee Retention Tax Credit… Read the rest
Illinois Governor Signs Anti-Consumer Rate Cap Bill into Law
Mar 23, 2021
The American Financial Services Association (AFSA) and its members who work to serve consumers in Illinois, are deeply disappointed with the governor’s decision to sign legislation that will hinder tens of thousands of Illinois… Read the rest
WATCH | Digitization in Auto Finance
Mar 23, 2021
Don’t get caught in the manual processes of 2020, it’s time to digitize. Featuring real-life examples to show the end to end car buying experience from the perspectives of the lender, borrower, and dealer. Learn what it means to digitize in … Read the rest
RELEASE | Broderick to Lead AFSA Vehicle Finance Division
Mar 22, 2021
WASHINGTON, DC, March 22, 2021 – The American Financial Services Association has announced the installation of Sandra Broderick, Head of Operations, Santander Consumer USA, as the 2021 AFSA Vehicle Finance Division Chair.
Broderick is… Read the rest
AFSA Supports SAFE Banking Act
Mar 19, 2021
On March 16, AFSA submitted a letter to Speaker Nancy Pelosi (D-CA) and Minority Leader Kevin McCarthy (R-CA) expressing its strong support for the bipartisan-backed Secure and Fair Enforcement (SAFE) Banking Act of 2021. Sponsored by Representatives… Read the rest
AFSA Raises Concerns with CT Disclosure Bill
Mar 19, 2021
On March 16, AFSA sent a letter to the Connecticut Joint Banking Committee raising concerns with SB 745, which would create a new set of disclosures that commercial lenders would be required to provide borrowers at the time credit is initially… Read the rest
A Radical Regulatory Proposal
Mar 18, 2021
When it comes to laws and regulations around consumer credit, some policymakers, as the saying goes, seem intent on killing a fly by burning down the house. Sure, you address the issue, but consider all that ancillary damage.
That’s the point… Read the rest
WATCH TODAY | Changing Consumer Behaviors
Mar 18, 2021
The automotive industry has faced its share of obstacles and uncertainty over the last 12 months, from the pandemic itself, the rush to implement digital retailing solutions and accommodating the consumer through new and redefined dealership… Read the rest
Auto Loan Defaults and Repossession at Historic Lows
Mar 17, 2021
Last week, the House Financial Services Subcommittee on Consumer Protection and Financial Institutions held a hearing with several advocacy groups and coalitions to examine policy options to help consumers through the pandemic. Several… Read the rest
Keynote Announcement | Charlie Gasparino Joins AFSA on the Gold Coast
Mar 17, 2021
AFSA is pleased to welcome Charlie Gasparino, Senior Correspondent with Fox Business News and one of America’s most storied business reporters, as the opening keynote speaker for the LIVE 2021 Independents Conference & Expo.
As… Read the rest