CATEGORY: General

American Rescue Plan Tax Credits for COVID-19 Vaccinations

Published on April 23, 2021 by  Time Off
Covid Vaccinations Tax Credits

We would like to make you aware of tax credits that are available to eligible employers that pay sick and family leave to their employees for COVID-19 vaccinations.  The tax credit could be worth $511 per day for COVID-19 vaccines and or recovery from any side effects of the shot.  The total credit is up to $5110 for eligible employers.  The credit is available for a limited time between April 1st and September 30th 2021.  We have provided some helpful links below with details about the tax credit from the IRS and the White House.

Time Off Cloud can assist you in tracking time used by your employees for COVID-19 vaccinations.  You can add a new Leave Type specifically for COVID-19 vaccinations to your existing Leave Programs.  The Leave Type policies can be set to the amount of time you will allow your employees to take, or set to non-accruing to simply be used for tracking.

Here is a knowledge base article on setting up a non-accruing Leave Type for your employees  

https://timeoffcloud.zendesk.com/hc/en-us/articles/360060327211-Setting-up-a-non-accruing-Leave-Type

Resources available from the United States Government

Under the American Rescue Plan, employers are entitled to tax credits for providing paid leave to employees who take time off related to COVID-19 vaccinations

https://www.irs.gov/newsroom/employer-tax-credits-for-employee-paid-leave-due-to-covid-19

FACT SHEET: President Biden to Call on All Employers to Provide Paid Time Off for Employees to Get Vaccinated After Meeting Goal of 200 Million Shots in the First 100 Days

https://www.whitehouse.gov/briefing-room/statements-releases/2021/04/21/fact-sheet-president-biden-to-call-on-all-employers-to-provide-paid-time-off-for-employees-to-get-vaccinated-after-meeting-goal-of-200-million-shots-in-the-first-100-days/

Time Off Cloud cannot provide tax, legal or accounting advice. This material has been provided for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors.

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