May 05, 2021

Tax Credits for COVID-19 Shots

In March, the Biden Administration signed the American Rescue Plan Act of 2021 (ARP), extending the availability of the Emergency Paid Sick Leave (EPSL) tax credit and the Emergency Family and Medical Leave (EFML) tax credit. These tax credits are designed to reimburse employers for the cost of providing paid sick and family leave to employees due to COVID-19, including leave taken between April 1, 2021 through September 30, 2021, to receive or recover from COVID-19 vaccinations.

Who is eligible? Any business (including tax-exempt organizations) with fewer than 500 employees, including nonfederal governmental and nonfederal section 501(c)(1) organizations or agencies.

Qualifying Reasons for Paid Sick Leave:

  • To obtain the COVID-19 vaccine,
  • To recover from any illness or condition related to the COVID-19 vaccine,
  • To provide time for an employee to seek or await the results of a COVID-19 test,
  • To satisfy quarantine protocols after exposure to COVID-19, or
  • To obtain an employer-requested diagnosis.

Tax Credits. The tax credits under the ARP are refundable and are against the employer’s share of the Medicare tax.

To learn more about how to claim the credits or if you’d like to discuss your unique situation, please contact your BMSS professional today. Visit our website or call (205) 982-5500.