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Details released on employer tax credits for COVID-19 vaccination-related employee paid leave

There has been extensive media coverage of President Biden's announcement that tax credits will be available to help small businesses provide paid leave for employees receiving COVID-19 vaccinations. Yesterday, April 21, the Internal Revenue Service and the Treasury Department posted details about the program.

The paid leave tax credits offset the employer's share of the Medicare tax. The tax credits are refundable, which means that the employer is entitled to payment of the full amount of the credits if it exceeds the employer's share of the Medicare tax.

Eligible employers can keep the federal employment taxes that they otherwise would have deposited, including federal income tax withheld from employees, the employees' share of social security and Medicare taxes, and the eligible employer's share of social security and Medicare taxes with respect to all employees up to the amount of credit for which they are eligible.

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.

Tags

health care & life sciences, covid-19, medicare

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