Recently, President Biden issued a call for employers to take additional steps toward supporting COVID-19 vaccination within their respective workforces and broader communities.
Biden announced a paid leave tax credit for small- and medium-sized businesses as part of that effort. This credit will allow eligible employers to fully offset paid leave costs associated with employees receiving their vaccines and recovering from any after-effects.
Eligible employers include businesses, nonprofits, and many government agencies with fewer than 500 employees. The credit will offset paid leave costs for up to two weeks (80 work hours) and $511 per day between April 1 and September 30, 2021.
According to the White House, this tax credit will apply to nearly half of all private-sector employees in America.
The credit will be funded by the recently passed American Rescue Plan Act (ARPA).
Employers should review how this tax credit may impact their organization. To learn more about eligibility for this tax credit and claim the paid leave credit on quarterly tax filings, employers can review this fact sheet from the Internal Revenue Service.
Additionally, the White House has asked employers to share how they’re taking steps to support vaccination efforts for their employees and communities. If interested, employers can access the form here.
Aldrich is Here to Help
Aldrich Benefits will continue to monitor developments with this program, and all other benefits-related aspects of the ARPA. If you have questions about paid leave for vaccinations, reach out to your Aldrich Benefits Advisor.
Meet the Author
Employee Benefits Consultant
Aldrich Benefits LP
Mike Berry began his Employee Benefits career in 1999 and joined Aldrich Benefits in October 2019. Prior to joining Aldrich, Mike spent 20 years working as an employee benefits consultant at Mercer Health & Benefits. More recently, he was working as an employee benefits practice leader for a Las Vegas based firm where he focused…
- Focus on large, multi-location employers, mid-market and small employers
- Strategic implementation of fully-insured, partially self-insured and self-insured plans
- Small and large (ALE) employee benefits consulting