Free Money—Again!  Need We Say More….?

Want to encourage COVID vaccination among your staff? Under the American Rescue Plan Act (ARPA), the IRS expanded the paid-leave tax credit to help organizations just like yours!

What Is It?

  • The paid-leave tax credit was enacted early March 2021 and updated July 2021.

  • It provides a tax credit to organizations who offer paid time off for employees choosing to get the COVID vaccine.

  • This includes time to get or recover from vaccination either for themselves or when caring for an immediate family member who gets it (“an immediate family member, someone who regularly resides in the employee’s home, or a similar person with whom the employee has a relationship that creates an expectation that the employee would care for the person,”).

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How Does It Work?

For paid sick leave (themselves)

  • Can be claimed for up to 80 per employee choosing vaccination

  • Gives you a credit for 100% of employees wages

  • Limited to $511 per day ($5,110 total) 

For paid family leave (care for others)

  • Can be claimed for up to 60 workdays (12 weeks) per employee

  • Gives you a credit for two-thirds of the employees wages

  • Limited to $200 per day ($12,000 total)

 

Where Do I Claim the Credit?

  • Claimed on your quarterly Form 941

  • Can claim time off wages granted between April 1 and September 30, 2021.

  • Per the IRS, paid leave credits are “tax credits against the employer’s share of the Medicare tax.”

For More Info:  https://www.irs.gov/newsroom/employer-tax-credits-for-employee-paid-leave-due-to-covid-19 

 
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