As a quick reminder, the Families First Coronavirus Response Act (FFCRA or Act) “requires certain employers to provide their employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19” (U.S. Department of Labor).
So there are lots of questions coming in now, with many clients asking about COVID-19 relief credits. These credits exist for instances such as an employee taking off to get the vaccine, and then has side-effects from it and stays home — that sort of thing. The credit is fully refundable for employers with fewer than 500 employees who offer paid leave to workers for qualifying COVID-19 reasons.
What’s Out There Now, Credit-Wise?
President Biden has encouraged everyone to take the vaccine, and as a result, we have what’s known as FFCRA, or the COVID-19 paid leave credit. That’s been around pretty much since they started the relief measures. If you’ve had people out over the last year because of the virus, then you’ve probably taken advantage of these relief credits. These are payroll tax credits that you get based on their leave, and also, a portion of your Medicare tax is, basically, how it’s figured.
That originally was only through the end of December 2020. And then, with the December stimulus, they extended that through the end of March, as far as the availability of the credit. Then, they extended that out another two quarters so employers could take advantage of that all the way through the end of third quarter, or September 30, and they added some additional criteria for qualifying leave. Among that criteria is:
- Time off to get the vaccine
- Time off if you have to recover from any side effects for the vaccine
So they’ve really put a lot of publicity behind this lately, trying to encourage people to get the shots and make it so that employers are encouraging of it by offering this credit.
How the Credit Works
If you’ve got employees that are taking time off to go get the vaccine, and if some of them are having side-effects and need to stay home for a few days, as long as you’re still paying them wages, you will qualify for the credit.
Getting Credit Where It’s Due
There have been so many different credit rollouts over the last year, and we know that it can get really confusing, especially as an employer. You hear a lot of things, maybe read some things, and over time, you’re left wondering what actually applies to you. If you don’t look into it, you could miss out on some credits you actually do quality for. If you’re uncertain about your eligibility, talk to your CPA! They can help clarify things and ensure your practice is on the right track.
At Duckett Ladd, we know you want to successfully run your practice and achieve your ideal quality of life. Our accounting, tax planning, and business strategy services can help you do it. To find the fastest solution to your business challenges, get in touch with our team today!
Duckett Ladd, LLP does not provide tax, legal, or accounting advice. This content has been prepared for informational purposes only and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Also, tax law is ever-changing and every effort should be made to seek out the most current information. Make sure to check the date of published content to ensure the most current information.