Unemployment Insurance: The bill continues the existing $300 weekly boost in federal unemployment benefits and two key pandemic unemployment programs through September 6. The Pandemic Unemployment Assistance program provides benefits to self-employed, gig workers, independent contractors, and other workers affected by the pandemic who don’t qualify for state-level assistance, while the Pandemic Emergency Unemployment Compensation program increases the duration of payments for those in the traditional state unemployment system.
The first $10,200 worth of benefits will be tax-free for households with annual incomes of less than $150,000.
Payroll Tax Credit Extension for Paid Sick, Family and Medical Leave: The bill extends the Payroll Tax Credit for paid sick, and family and medical leave from March 31, 2021 to September 30, 2021. It will allow public employers (state and local government agencies) to take advantage of the payroll tax credits. These fully refundable tax credits will compensate employers (including state and local governments) for coronavirus-related paid sick, family, and medical leave.