To encourage more widespread vaccinations, President Joe Biden recently highlighted a paid-leave tax credit for employers that provide full pay for employees who take time off to get and recover from a COVID-19 vaccination. The tax credit is available to organizations with fewer than 500 employees, and covers up to $511.00 per day for each vaccinated employee.
The tax credit is funded through an existing program under the American Rescue Plan that provides tax credits to eligible employers that voluntarily provide paid leave for certain COVID-19-related reasons through Sept. 30, 2021.
IRS Provides Employer Guidance
The Internal Revenue Service (IRS) released a fact sheet to educate employers on how to claim the paid-sick-leave credit on their quarterly tax filings. Nearly half of all private-sector employers in the U.S. will be eligible for the tax credit.