The IRS has released new resources explaining the tax credits available for employers who opt to provide paid family leave and paid sick leave under the Families First Coronavirus Response Act (FFCRA) and the American Rescue Plan Act (ARPA) through Sept. 30, 2021. The new resources consist of a fact sheet and a  “snapshot” document published on April 21, 2021, in conjunction with public remarks by President Joe Biden calling on employers to help their employees get vaccinated.

Eligible Employers

Employers with fewer than 500 employees are eligible for the credit, with the exception of federal government employers and any agency or instrumentality of the federal government that is not a 501(c)(3) organization.

Qualifying Leave

Under the ARPA, eligible employers may take a tax credit (within set limits) against their share of the Medicare tax to fund the cost of paid employee leave taken for specific COVID-19-related reasons, including to receive and recover from vaccinations. The credits are available from April 1-Sept. 30, 2021.

See attached bulletins for information about President Biden’s announcement and how to calculate and claim the tax credits. Employers are not required to offer the paid leave under FFCRA and ARPA after Dec. 31, 2020. However, they may be subject to state/local leave laws, including some that are specific to COVID-19 leave, and should continue to monitor new and developing requirements applicable to their location(s).

If you have questions or need help, please reply to this email and we will be happy to assist you.

President Biden Announcement Tax Credit Bulletin

If you have questions or need help, please contact one of our benefit consultants.

 

Check out our COVID-19 Resource Center for more resources and information.