On July 29, the IRS posted in an updated FAQ two new conditions eligible for paid sick leave under the Families First Coronavirus Response Act (FFCRA) and the American Rescue Plan Act (ARPA).The paid emergency sick and family leave provisions within FFCRA expired December 2020. Since then, employers with fewer than 500 employees wanting to voluntarily extend the paid leave are allowed to claim tax credits under ARPA through September 30, 2021.
The added conditions eligible for tax credits include
- time taken by an employee to accompany a family or household member or certain other individuals* to obtain immunization related to COVID-19, and
- time taken by an employee to care for a family or household member or certain other individuals* recovering from the immunization.
*Guidance states sick leave can be taken when the person obtaining the immunization or requiring care is someone with whom the employee has a relationship that creates an expectation that the employee would care for the person.
Tax credits are claimed on eligible employees qualified for up to 80 hours of paid sick leave at a rate of 2/3 of the employee’s regular rate of pay, not to exceed $200 and $2,000 in aggregate. Employers use Form 941 to claim the credit.
For additional information, contact your Bukaty benefits consultant at 913.345.0440.