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Tax Credits For Certain Employers Paying for Time Off For COVID-19 Vaccinations
Apr 23, 2021

Tax Credits For Certain Employers Paying for Time Off For COVID-19 Vaccinations

Topics: COVID-19, Legal Information, New Laws & Legislation

On April 21, 2021, the Biden administration detailed the provision of tax credits for certain businesses that pay employees for time off to get COVID-19 vaccines or due to vaccine side effects.  The tax credits are funded by the American Rescue Plan Act of 2021 and are part of President Biden’s plan to encourage employers to use their resources to boost vaccinations. 

The tax credits are available for businesses with fewer than 500 employees, for up to 80 hours in paid time off, capped at $511 per day and $5,110 in the aggregate.  Eligible businesses can claim the credit quarterly through September 30, 2021.  Self-employed individuals may claim comparable tax credits on their individual Form 1040, U.S. Individual Income Tax Return.

The Internal Revenue Service and the U.S. Department of the Treasury issued details and guidelines for the tax credits on Wednesday, link here.  The tax credits are credits against the employer's share of the Medicare tax and are refundable, which means that employers are entitled to payment of the full amount of the credits if the amount exceeds the employer's share of the Medicare tax.

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For over 25 years, CDF has distinguished itself as one of the top employment, labor and immigration firms in California, representing employers in single-plaintiff and class action lawsuits and advising employers on related legal compliance and risk avoidance. We cover the state, with five locations from Sacramento to San Diego.

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Sacramento Office Managing Partner and Chair of CDF’s Traditional Labor Law Practice Group. Mark has been practicing labor and employment law in California for thirty years. His practice has a special emphasis on the representation of California employers in union-management relations and handling federal and state court litigation and administrative matters triggered by all types of employment-related disputes. He is also adept at providing creative and practical legal advice to help minimize the risks inherent in employing workers in California. He recently named “Sacramento Lawyer of the Year” in Employment Law-Management for 2021 by Best Lawyers®.
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