Congress just passed the $1.9 trillion COVID relief bill, the “American Rescue Plan Act of 2021” (ARPA), and have sent it on to the President for his expected signature. The bill includes significant employee benefits related provisions including a federal subsidy that will cover 100% of the cost of COBRA continuation coverage for up to 6 months for individuals who have had an involuntary termination of employment or reduction in hours. The bill also includes an increase in the amount an employee can elect to contribute tax-free to a Section §129 Dependent Care Assistance Program (DCAP).

[For details: Read the full RCM&D alert here].