Congressman Cohen Announces Tax Credit to Cover Cost of Paid Leave for Small Businesses is Extended through September
Workers can use leave to get vaccinated
WASHINGTON – Congressman Steve Cohen (TN-09) today announced that the IRS will continue to provide tax credits to help local small businesses cover the costs of providing paid sick and family leave for workers through September. Along with using leave to care for themselves and family who are sick, workers can also use leave to get their COVID vaccinations and take time off to recover from any temporary side effects from the shot. Research has shown that states where employees gained access to paid sick leave through this tax credit experienced a slow-down in the spread of COVID.
Congressman Cohen made the following statement:
“Small businesses were hit especially hard by the pandemic. This tax credit will help our community return to a post-pandemic normalcy while we grow our economy, keep businesses open and keep workers and their families safe.”
Thanks to the American Rescue Plan that Congressman Cohen helped pass, employers with fewer than 500 employees may receive up to $17,110 per employee to provide employees with up to 10 days of paid sick leave and up to 12 weeks of paid family leave, from April 1 through September 30, 2021. Certain self-employed individuals in similar circumstances are entitled to similar credits as are schools, public hospitals and other state and local government employers.
Businesses can access the advanceable, refundable tax credit in real-time by reducing the amounts they set-aside to pay payroll taxes and employee withholding, and then claiming any excess on their quarterly tax filings or request for an advance payment from the IRS.
Roughly 6 million businesses and more than 30 million workers are eligible for this credit.
Businesses can find instructions for how to claim their credit HERE.