September 30, 2023

United States President Joe Biden walks the South Lawn of the White House before boarding Marine One in Washington, DC on Wednesday, July 28, 2021.

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WASHINGTON – The Treasury Department announced Thursday that it will extend tax credits to employers who give workers paid time off to receive Covid-19 vaccines to include time for workers to take family members to vaccinate.

According to a statement by the agency, “eligible employers can claim tax breaks equal to the wages paid for paid leave of absence to take a family or household member or certain other person for vaccination or to look after a family, or” a household member or certain other persons recovering from vaccination. Comparable tax reductions are also available for the self-employed. “

The announcement builds on a provision contained in the Biden government’s $ 1.9 trillion Covid-19 relief bill known as the American Rescue Plan. The Internal Revenue Service and Treasury Department stated in April that certain employers could be eligible for credit if they give any employee who receives the vaccine vacation time and for any time it takes to recover from vaccination.

The ARP tax credits are available to small and medium-sized employers who pay sick and family leave through September 30, 2021.

The vacation credits paid are tax credits on the employer’s share of Medicare tax. The tax credits are refundable, meaning the employer is entitled to receive the full amount of the credits if it exceeds the employer’s share of Medicare tax.