On 7/29/21 it was announced by the Treasury Dept. and IRS that eligible employers who extend paid leave to employees who need to take certain individuals to receive their COVID-19 vaccine or care for certain individuals or household members while they recover will receive a tax credit equal to the wages paid for providing the time off. This is in addition to any time that the employee needs to get his/her vaccination and additional recovery time. Credit will be available for leave taken between 4/1/2021 and 9/30/2021 as long as it satisfies the requirements of the Emergency Paid Sick Leave Act (EPSLA) and Emergency Family and Medical Leave Expansion Act (Expanded FMLA) for purposes of the American Rescue Plan Act of 2021 (ARP). Comparable tax credits are also available for self-employed individuals.
Under the Families First Coronavirus Response Act (FFCRA) employers were required to provide anywhere from 10 days to 10 weeks of paid emergency family and medical leave for specified COVID-19 related reasons until the end of last year. Employers are no longer required to provide paid time off for this leave, however, eligible businesses that voluntarily provide paid time off for employees to get vaccinated, tested, and recover from vaccination and/or COVID-19, or assist a family member or other certain individuals in the same capacity, can receive a tax credit for equal to the amount of wages paid for qualified leave. This is an effort to provide support and lift some of the burden for businesses who are promoting the health of their employees and community during this pandemic.