The Consolidated Appropriations Act, 2021 (“CAA”), signed into law on December 27, 2020, contains several provisions that may be of interest to employers. Among other things, the CAA extends and modifies the following employment-related provisions of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”): (a) several key unemployment compensation programs; (b) the refundable Employee Retention Tax Credit (“ERTC”); and (c) the period for repayment of deferred payroll taxes through December 31, 2021. The CAA also extends the refundable payroll tax credits established by the Families First Coronavirus Response Act (“FFCRA”) for paid sick and paid family leave wages paid through March 31, 2021; allows a full deduction for business meals at restaurants paid or incurred between December 31, 2020 and January 1, 2023 where the deductions were previously limited to 50% of such expenses; and allows participants in health or dependent care flexible spending arrangements to carry over unused amounts from 2020 to 2021 and from 2021 to 2022. The CAA also contains revisions to the existing Paycheck Protection Program (“PPP”), which will be addressed in a separate memorandum to clients. Significantly, the CAA does not extend the mandatory paid sick and family leave programs created by the FFCRA, which expire on December 31, 2020.