Paid Leave Credit for Eligible Employers Related to the COVID-19 Immunization

The IRS has updated Frequently Asked Questions (FAQs) on the paid sick and family leave tax credits under the American Rescue Plan Act of 2021 (ARPA). The updates clarify that eligible employers can claim the credits for providing leave to employees to accompany a family or household member or certain other individuals to obtain immunization relating to COVID-19 or to care for a family or household member recovering from a COVID-19 immunization. The paid sick and family leave credits reimburse employers for the cost of providing paid sick and family leave for reasons related to COVID-19 and applies for comparable credits for self-employed individuals. The ARPA has extended these credits to leave taken beginning 4/1/21 through 9/30/21. For more information, see www.irs.gov/newsroom/tax-credits-for-paid-leave-under-the-american-rescue-plan-act-of-2021-determining-the-amount-of-the-tax-credit-for-qualified-family-leave-wages .