This post contains an overview of three temporary provisions in the American Rescue Plan Act (ARPA) that impact BASIC services and clients, as well as our business response to each:
- Dependent Care FSA – Increased Contribution Limit
- COBRA – Extended Subsidies
- FMLA – Extended Employer Tax Credits
This new ARPA legislation creates huge incentives for an employer to add a COBRA, FMLA, and Dependent Care FSA plan from BASIC. We should encourage our current clients to add one or more of these plans to make sure their employees get full access to the additional relief benefits, only available for a limited time.
We will be sending an email communication with content similar to what is presented below to all BASIC clients soon, followed by a second round of emails to clients with FMLA/COBRA/DCFSA plans in place to offer more plan-level information. Please encourage your BASIC clients to watch for these emails to receive important information regarding the legislation and how it affects their applicable benefit plans.