Tax credits available to small-business employers to provide paid leave to employees receiving COVID-19 vaccines

The Internal Revenue Service and the Treasury Department announced further details of tax credits available under the American Rescue Plan to help small businesses, including providing paid leave for employees receiving 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.

The credit is:

• For paid sick leave related to receiving a COVID-19 vaccination
• Paid from 4/1 – 9/30/2021
• Up to $511 per day ($5,110)
• Reported on Form 941 or Form 7200

More details are available on this fact sheet.

To read the full IRS and the Treasury announcement click here.

How KatzAbosch Can Help

KatzAbosch can help you create an overarching strategy that incorporates PPP, ERC and other tax credits and incentives to help you maximize cash flow. Our dedicated PPP and ERC teams are well-versed in the latest guidance and can help you achieve the best possible long-term benefit to your business.

If you would like to discuss your tax and business strategy, please mention it to your KatzAbosch representative or contact us today.