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AMERICAN RESCUE PLAN ACT CONTAINS MANY EMPLOYEE BENEFITS RELATED PROVISIONS

Benefits Notes

MARCH 31, 2021

The ARPA expands the definition of “covered employee” under Code Section 162(m) such that for tax years beginning after December 31, 2026, the next five mostly highly compensated employees of a company (after the CEO, CFO, and top three mostly highly compensated employees besides the CEO and CFO) will also be “covered employees.”

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