Expansion of Tax Credits for Employers Offering Paid Leave for Vaccine

Under the American Rescue Plan Act of 2021

ARPA has extended the tax credits an employer can receive for paying qualified sick leave wages, through September 30, 2021.  An employer is not required to pay sick leave wages but will receive a tax credit if they choose to do so.

Qualified sick leave wages can be paid to employees to care for an individual who is recovering from any injury, disability, illness, or condition related to the immunization, or is experiencing a “substantially similar condition” under section 5102(a)(6) of the FFCRA.

The U.S. Department of the Treasury has recently indicated that an employee who takes leave to accompany an “individual” to obtain immunization related to COVID-19 is qualified to receive sick leave wages.

The Treasury’s announcement clarified that a that an employee who takes leave to accompany an individual to obtain immunization related to COVID-19 is experiencing a “substantially similar condition” and, therefore, an eligible employer may pay qualified sick leave wages and receive a tax credit.

An “individual” means an immediate family member, someone who regularly lives in the employee’s home, or a similar person with whom the employee has a relationship that creates an expectation that the employee would care for the person.

IRS FAQs covering paid leave after March 31, 2021, and before September 30, 2021



If you have any questions, please send an email to Compliance@rsiaccounting.com or a support request regarding compliance.


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