Newburg Staff Writers (4/23/21)
The Biden Administration announced a new tax credit yesterday, for employers who offer COVID vaccine-related paid leave. The provision is a component of the recent American Rescue Plan Act released in March. This comes as the White House urges more Americans to get vaccinated, as the country is currently experiencing a slight overall decline in vaccinations.
The tax credit, designated for small and medium-sized businesses, is intended to fully offset the cost of awarding paid time off for employees to receive the COVID vaccine, as well as additional time, if needed, to recover from any potential side-effects experienced by the employee.
The White House is also calling on employers to use their resources to encourage COVID vaccinations through the sharing of accurate information and possible incentives for vaccinated employees.
The credit will cover paid leave up to $511 per day, per employee, in businesses with fewer than 500 employees and nonprofits. The credit will cover up to 10 workdays, or 80 hours, taken between between April 1 and September 30, 2021. The credit would be claimed through the Employer’s quarterly payroll tax Form 941 or via an advance that can be claimed on Form 7200. For more details regarding claiming the credit, you can visit the IRS’ recent fact sheet covering the topic:
https://www.irs.gov/newsroom/employer-tax-credits-for-employee-paid-leave-due-to-covid-19
As of this article date, all residents 16 years of age and older are eligible to receive their COVID vaccination in Massachusetts. Please see the applicable state guidelines for other states.