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.