Back

April 26, 2021

United States Will Offer Business Tax Credit For Employee Vaccinations

With concerns emerging that the United States could be reaching a plateau in its efforts to vaccinate Americans against COVID-19, President Joe Biden announced last week a paid leave tax credit for employers. For businesses with fewer than 500 employees, the credit will offset the cost to provide full pay for the time employees need to get the vaccine, or to recover from it.

The tax credits are refundable, meaning employers can take advantage of them even if they do not have tax liability. President Biden said, “I’m calling on every employer, large and small, in every state, to give employees the time off they need with pay to get vaccinated … And any time they need with pay to recover if they’re feeling under the weather after the shot.”

The Internal Revenue Service (IRS) has a fact sheet to educate employers on how to claim the credit on quarterly tax filings. For more details about the vaccination-paid leave tax credits, employers should consult this snapshot from the Department of the Treasury.

Employers also are encouraged to examine whether they can hold events to vaccinate members of their workforces.

The U.S. Centers for Disease Control and Prevention has issued guidance to help companies determine if an on-site vaccination program is an option for them. Additionally, the U.S. Chamber of Commerce Foundation has resources for hosting a vaccine clinic. View them here and here.

In related news: the Equal Employment Opportunity Commission is working on providing employers more clarity about whether they can provide vaccine incentives to their employees without violating federal anti-discrimination law.

To search, type what you're looking for and results will appear automatically