U.S. Treasury Department Extends Pandemic Paid Leave Tax Credit
On July 29, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) announced that eligible employers can claim tax credits equal to the wages paid for providing paid time-off to employees to take a family or household member or certain other individuals to get vaccinated, or to care for a family or household member or certain other individuals recovering from the vaccination.
As a reminder, in April 2021 the two agencies had announced eligible employers, such as businesses and tax-exempt organizations with fewer than 500 employees and certain governmental employers, could receive paid leave tax credits available under the American Rescue Plan Act of 2021 (ARP) for providing leave for each employee receiving the vaccine and for any time needed to recover from the vaccine.
This latest announcement means employers have an improved opportunity to support the health and safety of their employees’ families and communities without placing an undue burden on their business.
For more details on how the paid leave tax credits will work for, see the IRS’ updated FAQs, available here.