Keep employees safe by offering paid leave
Thanks to the American Rescue Plan, immediate tax credits are available through most of 2021 to businesses that offer their employees paid sick and family leave. You could see these credits in your bottom line as soon as your next quarterly filing. These credits make it easy to keep your employees safe and healthy. And, they are good for more than just your business: Offering paid sick and family leave helps fight the virus by helping employees get vaccinated and encouraging sick employees to stay home.
Get paid back for paid leave
- Are a business with under 500 employees;
- Offer paid sick or family leave to your employees through September 30, 2021;
- Have employees who take paid leave due to COVID including for illness, quarantine, getting tested or vaccinated, or caregiving. Your business may be eligible for tax credits of more than $17,000 per employee who takes sick or family leave from April 1 through September 30, 2021.
For the 2nd and 3rd quarters of 2021, businesses may take tax credits for wages up to 80 hours of paid sick leave in an amount equal to either: (1) the employee’s regular wage, capped at $511/day, up to a total of $5,110 if the employee was sick or quarantining, awaiting the results of a COVID test, obtaining or recovering from a vaccine; or (2) two-thirds of the employee’s regular wage, capped at $200/day, up to a total of $2,000, if the employee was taking time to care for someone quarantining or to provide care due to COVID-19 school or child care provider closures.
Find out more about the BidenHarris Administration’s recovery programs at TREASURY.GOV/CORONAVIRUS
Please note that this is a simplified description of the paid leave credit rules. Business owners should consult with their tax advisors regarding the specifics of their situation.