Connect with us

Hi, what are you looking for?

Health

IRS: Employer Credits Available for Loss Due to Caring for Family Recovering from Immunization

Last week, the IRS updated guidelines on the paid sick and family leave tax credits under the American Rescue Plan Act of 2021 (ARP).

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 or certain other individuals recovering from the immunization.

The paid sick and family leave credits reimburse eligible employers for the cost of providing paid sick and family leave for reasons related to COVID-19. The revised FAQs make clear this includes leave taken by employees to care for certain individuals to obtain immunization relating to COVID-19 or to recover from immunization relating to COVID-19. This new reason for paid sick or family leave also applies for the comparable credits for self-employed individuals.

Advertisements

The paid sick and family leave tax credits under the ARP are similar to those put in place by the Families First Coronavirus Response Act (FFCRA), as amended and extended by the COVID-related Tax Relief Act of 2020 (Tax Relief Act), under which certain employers could receive tax credits for providing paid sick or family leave that met the requirements of the Emergency Paid Sick Leave Act and the Emergency Family and Medical Leave Expansion Act (as added by FFCRA). The tax credits under the FFCRA, as amended and extended by the Tax Relief Act, covered leave taken beginning April 1, 2020, through March 31, 2021. The ARP amends and extends these credits to leave taken beginning April 1, 2021, through September 30, 2021.

The FAQs include information on how eligible employers may claim the paid sick and family leave credits, including how to file for and compute the applicable credit amounts, and how to receive advance payments for and refunds of the credits. Under the ARP, eligible employers, including businesses and tax-exempt organizations with fewer than 500 employees and certain governmental employers, may claim tax credits for qualified leave wages and certain other wage-related expenses (such as health plan expenses and certain collectively bargained benefits).

Self-employed individuals may claim comparable credits on the Form 1040, U.S. Individual Income Tax Return.

The Georgia Virtue
Written By

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Advertisement
Advertisement

Facebook

The Georgia Virtue on Youtube

Advertisement

You May Also Like

South Georgia Local News

This article contains a number of PDF files, some of which are large and may take a few moments to load. The former Richmond...

Bulloch Local News

The Marcus Wilson defense team filed a handful of motions Thursday afternoon to have Judge Michael Muldrew removed from the high profile case in...

Bulloch Crime & Safety

Two people are behind bars after an inmate was provided with drugs while working a detail at the recycling center. The Bulloch County Sheriff’s...

Bulloch Local Government

A member of the Statesboro City Council collected unemployment benefits based on the compensation received as an elected official, public records show. But who...

Copyright © 2021 ... JustSun LLC.

NEVER MISS A STORY!
Sign Up For Our  Newsletter
Get the latest headlines and stories - and even exclusive content!- sent right to your inbox.
Stay Updated
Give it a try, you can unsubscribe anytime.
close-link
×