Employment Law Report

The American Rescue Plan Act of 2021 allows small and midsize employers to claim refundable tax credits that reimburse them for the cost of providing paid sick and family leave to employees due to COVID-19, including leave to receive or recover from COVID-19 vaccinations. This refundable credit is available for wages paid during such leave from April 1, 2021 through September 30, 2021. Eligible employers may claim it against employer withholding payments (e.g., back it out of the employer’s share of Medicare tax on IRS Form 941). Additional information can be found here.