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On April 21, 2021, in a further push to encourage COVID-19
vaccinations for those individuals who have been hesitant, the
White House issued a fact sheet titled, 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. This announcement
further signals the administration s dedication to vaccinating
the U.S. population and its willingness to offer incentives to
employers that support their employees in becoming vaccinated.
Employers that have remained neutral on this issue could be
Vaccine Tax Credit: Which Business Can Claim COVID Support and How
On 4/23/21 at 7:25 AM EDT
Some small businesses and non-profit organizations can claim a paid leave tax credit to fully offset the costs of providing paid sick leave to employees getting a COVID-19 vaccine and recovering from the after-effects of vaccination, President Joe Biden announced Wednesday.
Employers can also claim the credit to cover the costs of providing paid family leave to workers taking time to care for someone quarantining or to provide care due to COVID-19 school or child care provider closures, the U.S. Department of the Treasury explains.
For many employers, the costs related to the COVID-19 vaccine just went down.
On April 21, 2021, President Biden announced that employers with fewer than 500 employees – including tax exempt organizations – can claim a refundable tax credit for paid sick and family leave provided to employees on account of COVID-19. This includes leave taken by employees to receive or recover from COVID-19 vaccinations. The leave taken must be for the period from April 1, 2021, through September 30, 2021.
The tax credit applies to wages (subject to caps) paid for leave taken by employees who are not able to work or telework due to reasons related to COVID-19. This includes leave taken to receive COVID–19 vaccinations or to recover from any injury, disability, illness or condition related to the vaccinations.
Written by Internal Revenue Service
The Internal Revenue Service and the Treasury Department announced today 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.
The additional details, provided in a fact sheet released today, spell out some basic facts about the employers eligible for the tax credits. It also provides information on how these employers may claim the credit for leave paid to employees related to COVID-19 vaccinations
Eligible employers, such as businesses and tax-exempt organizations with fewer than 500 employees and certain governmental employers, can receive a tax credit for providing paid time off for each employee receiving the vaccine and for any time needed to recover from the vaccine. For example, if an eligible employer offers employees a paid day off in order to get vaccinated, the employer can receive a tax credit equal to the