In April 2021, the Treasury Department and the IRS announced that eligible employers
could receive paid leave tax credits under the American Rescue Plan Act of 2021 (ARP)
for providing leave for employees receiving the vaccine and for the time needed to recover
from the vaccine from April 1, 2021, through September 30, 2021.
On July 29, 2021, the Treasury Department and the Internal Revenue Service (IRS)
expanded the ability to claim tax credits to circumstances where employees use
emergency paid leave to accompany an immediate family member or dependent to obtain
a COVID-19 vaccine and/or to care for an immediate family member or dependent
recovering from the COVID-19 vaccine. The credits reimburse eligible employers for the
cost of providing paid sick and family leave for reasons related to COVID-19.
Eligible employers include certain private employers with less than 500 employees and
certain public employers that voluntarily provide employees with emergency paid leave for
reasons related to COVID-19.
As always, the tax rules are complex. If you have questions or need assistance with this
recent development, contact Nicole Gardner or Fred Parker.