The American Rescue Plan Act changed the taxability of National Paid Leave under the Families first coronavirus Act. For payrolls dated April 1, 2021, to September 30, 2021, paid leave is now subject to Employer Social Security tax and all FFCRA Paid leave wages must include taxable Social Security wages.

Under the old law, if you had a PPP loan, you could not have applied for the ERC. Under the new law, Employee retention credit is allowed even if you had a PPP loan, however, you need to satisfy the 50% or more decline in gross receipts for each quarter of 2020 which declined in sales by 50% for the corresponding quarter in 2019.