Eligible employers can claim a tax credit for providing paid time-off for each employee receiving the vaccine
Eligible employers can claim a tax credit for providing paid time-off
The IRS today issued a “fact sheet” with information about tax credits available for “small employers” that provide paid leave for employees receiving COVID-19 vaccinations.
The additional details—provided by the fact sheet, FS-2021-09—set out certain basic information about employers that are eligible for the tax credits and provides information about how these employers may claim the credit for leave paid to employees related to COVID-19 vaccinations.
Eligible employers—including businesses and tax-exempt organizations with fewer than 500 employees and certain governmental employers—can claim a tax credit for providing paid time-off for each employee receiving the vaccine and for any time needed to recover from the vaccine. A related IRS release (IR-2021-90) provides as an example, if an eligible employer offers employees a paid day off in order to get vaccinated, the employer can receive a tax credit equal to the wages paid to employees for that day (up to certain limits).
The “American Rescue Plan Act of 2021” (Pub. L. No. 117-2) signed by the president on March 11, 2021, allows small and midsize employers and certain governmental employers to claim refundable tax credits that reimburse them for the cost of providing paid sick and family leave to their employees due to COVID-19, including leave taken by employees to receive or recover from COVID-19 vaccinations.
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