President Joe Biden recently announced a tax credit for small and medium-sized companies, allowing these employers to grant their employees paid leave for vaccination and recovery from COVID-19.
“Each employee must receive paid leave to take a chance, and companies must know that they can provide it without jeopardizing their financial results,” said Biden in a speech at the White House, as reported by CNBC. “There is no excuse for not doing this.”
At the White House Statement released on April 21, says:
As part of that effort, President Biden is asking all employers in the United States to offer full payment to their employees for any time needed to be vaccinated and for any time it takes to recover from the side effects of vaccination. It will announce a tax credit for paid leave that will offset the cost for employers with fewer than 500 employees to provide full payment any time their employees need to receive the COVID-19 vaccination or recover from that vaccination.
Providing paid leave for vaccination is an investment in the safety, productivity and health of the employer’s own workforce and its community. No person working in this country should lose a single dollar from his paycheck to take a chance to take the photo or recover from it. The paid leave tax credit that President Biden signed into the American Rescue Plan law ensures that no small business or nonprofit organization will lose a single dollar in granting that paid license to workers who receive a vaccination.
This week, we have reached a new phase in the vaccination effort. As of Monday, in response to the president’s directive, all adults aged 16 and over in all states and territories can now be vaccinated. Now is the time to step up our efforts to reach all working-age adults in America, and today’s announcement to help employers offset the cost of paid time off is an important step in vaccinating America’s workforce.
The credit is actually part of the $ 1.9 trillion American Rescue Plan, which the president signed on Thursday, March 11. The package also gave Americans a third round of $ 1,400 stimulus checks per eligible individual. Both credit and stimulus checks are part of many economic benefits provided by the government, such as the child tax credit.
As for credit, see how a small business is considered eligible:
• Thanks to President Biden’s American Rescue Plan, a paid license tax credit will offset the cost for companies and nonprofits with fewer than 500 employees for up to 80 hours (ie 10 working days) up to $ 511 per day paid sick leave offered between April 1 and September 30, 2021.
• This tax credit will allow these employers to grant paid leave for employees to receive the COVID-19 vaccination and anytime their employees need to recover from this vaccination at no cost to the employer.
• This tax credit will apply to almost half of all private sector employees in America. Today, the Internal Revenue Service (IRS) released and published a newsletter to educate employers on how to claim paid sick leave credit in their quarterly tax reports.
• For more details on how the American Rescue Plan paid leave tax credits will work for employers to allow employees to be vaccinated and recover from the side effects of vaccination, as well as for other purposes, see this snapshot from the Department of O Treasure.
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